38.2-1504 - Requirements when proceedings instituted by any person other than Commission. - Virginia Statutes

§ 38.2-1504. Requirements when proceedings instituted by any person otherthan Commission.

A. No circuit court in this Commonwealth shall appoint a receiver for anydomestic insurer on application of any person other than the Commission until:

1. The applicant has presented to the Commission a copy of a bill in equityfor receivership and has given reasonable notice to the affected insurer thata copy of the bill has been presented to the Commission.

2. The affected insurer has been given ten days after the service of thisnotice to present to the Commission a copy of the answer that it proposes tofile.

3. The Commission has investigated the merits of the application forreceivership and has held a hearing on the results of the investigation. TheCommission shall act within a reasonable period of time.

4. Within a reasonable time after completing its investigation, theCommission shall make a recommendation to the proper court regarding theappointment of the proposed receiver.

B. The court shall appoint or refuse to appoint the proposed receiver afterconsidering the merits of the application for a receiver.

(1952, c. 317, § 38.1-130; 1986, c. 562.)