38.2-1506 - Requirements when receiver appointed; disbursement of available assets to association, etc. - Virginia Statutes

§ 38.2-1506. Requirements when receiver appointed; disbursement of availableassets to association, etc.

A. Whenever a receiver, other than the Commission, is appointed pursuant to §38.2-1504 for any domestic insurer other than an insurer writing exclusivelytitle, fidelity and surety, credit or ocean marine insurance, the receivershall petition the court for approval of a plan to disburse the assets. Thisshall be completed within 120 days of a final determination by the Commissionthat the insurer is insolvent. After the application of an association for aninsolvent insurer's available assets has been granted, the insolventinsurer's assets will be disbursed to any association entitled to them asthey become available.

B. The plan shall include provisions for the receiver to take all the actionsrequired by subsections B and C of § 38.2-1509.

C. Notice of the petition by the receiver to the court for approval of a planto disburse an insurer's assets shall be given to the associations and thecommissioners of insurance of the other states. This notice shall be deemedgiven when sent by certified mail at least thirty days before submission ofthe petition to the court. Action on the petition may be taken by the courtor a judge of the court if the required notice has been given and the plan ofthe receiver contains the provisions set forth in this section.

(1978, c. 696, § 38.1-131.1; 1986, c. 562.)