38.2-1505 - Commission may apply for receiver and for other relief; what orders court may enter. - Virginia Statutes

§ 38.2-1505. Commission may apply for receiver and for other relief; whatorders court may enter.

A. Whenever the Commission finds that any of the grounds for rehabilitationor liquidation of a domestic insurer set out in § 38.2-1503 exist, it mayapply to the Circuit Court of the City of Richmond for an order directing theinsurer to show cause on or before a designated date (i) why a receiver otherthan the Commission should not be appointed for the insurer, (ii) why anorder should not be entered authorizing the Commission, as a receiver, toproceed with the rehabilitation or liquidation of the insurer or (iii) whyother appropriate steps authorized by this chapter should not be taken. Theapplication and order may include any other relief as the nature of the caseand the interests of the policyholders, creditors, stockholders, members ofthe insurer and of the public may require. A copy of the application and theorder to show cause shall be served upon the insurer and shall constitutelegal process. The State Treasurer shall be made a party to the proceeding.

B. On or after the return of the order to show cause, and after a fullhearing, the court shall either deny the application, appoint a receiver forthe insurer, authorize the Commission to proceed with the rehabilitation orliquidation of the insurer or to take any other appropriate proceedings asthe Commission considers advisable.

(Code 1950, §§ 38-138, 38-139; 1952, c. 317, § 38.1-131; 1986, c. 562.)