38.2-1611 - Aids in detection and prevention of insurer insolvencies.
§ 38.2-1611. Aids in detection and prevention of insurer insolvencies.
To aid in the detection and prevention of insurer insolvencies:
1. The Association's board of directors has the duty, upon a majority vote,(i) to make recommendations to the Commission for the detection andprevention of insurer insolvencies, and (ii) to respond to requests by theCommission to discuss and make recommendations regarding the status of anymember insurer whose financial condition may be hazardous to thepolicyholders or the public.
2 through 5. [Repealed.]
6. At the request of the Commission and at the conclusion of any insurer'sinsolvency in which the Association was obligated to pay covered claims, theboard of directors may prepare a report on the history and causes of theinsolvency based on the information available to the Association. The reportshall be submitted to the Commission.
(1970, c. 766, § 38.1-768; 1986, c. 562; 1987, c. 529.)