38.2-1323 - Acquisition of control of insurers. - Virginia Statutes

§ 38.2-1323. Acquisition of control of insurers.

A. No person shall acquire or attempt to acquire, through merger orotherwise, control of any domestic insurer, or any person controlling adomestic insurer, unless the person has previously filed with the Commissionand has sent to the insurer an application for approval of acquisition ofcontrol of the insurer, and the Commission has issued an order approving theapplication. No such merger or other acquisition of control shall beeffective until a statement containing the information required by thisarticle has been filed with the Commission, all other provisions of thissection have been complied with, and the merger or acquisition of control hasbeen approved by the Commission pursuant to this article.

B. If the merger or acquisition of an insurer not covered by subsection A ofthis section causes or tends to cause a substantial lessening of competitionin any line of insurance and such lessening of competition is detrimental topolicyholders or the public in general, then the Commission may suspend suchinsurer's license after giving the insurer ten days' notice and theopportunity to be heard.

C. Any notice issued pursuant to the provisions of subsection B shall beaccompanied by a request for such information as required by § 38.2-1324. Anyhearing held pursuant to the provisions of this section shall begin, unlesswaived by the insurer, within forty days of the receipt by the Commission ofall material required by this subsection.

(1977, c. 414, § 38.1-178.1:1; 1986, c. 562; 1992, c. 588; 1993, c. 158.)