38.2-1047 - How deposits applied to payment of claims; deficit to be made good. - Virginia Statutes

§ 38.2-1047. How deposits applied to payment of claims; deficit to be madegood.

A. This section shall apply only where:

1. The insurer has failed to pay any of its liabilities after the liabilitieshave been ascertained (i) by any agreement of the parties binding theinsurer, or (ii) by judgment, order or decree of a court of competentjurisdiction which has not been appealed, superseded or stayed; and

2. The provisions of subsection B of § 38.2-1046 are not applicable.

B. Upon application of the person to whom the debt or money is due and aftergiving notice as provided in subsection C of this section, the StateTreasurer shall (i) sell an amount of securities with accrued interest thatprovides sufficient funds to pay the sums due and the expenses of the saleand (ii) pay the sums due and expenses out of the available funds. This shallbe subject to the approval of the Commission.

C. The State Treasurer shall give the insurer or its agent ten days' notice,either by mail or personally, of the time and place of the sale. The saleshall be advertised daily for ten days in a newspaper of general circulationpublished in the City of Richmond.

D. The insurer shall immediately make good any deficit in its depositresulting from a sale. The State Treasurer shall report to the Commission inwriting (i) the amount and kind of securities sold in accordance with theprovisions of this section and (ii) the amount and kind of securitiesdeposited to make good the deficit.

(Code 1950, § 38-49; 1950, p. 996; 1952, c. 317, § 38.1-111; 1986, c. 562;1988, c. 298.)