38.2-1518 - Rehabilitation or mutualization of companies. - Virginia Statutes

§ 38.2-1518. Rehabilitation or mutualization of companies.

If at any time the Commission acting as the receiver finds that it is in thebest interests of the policyholders and creditors of a delinquent insurerthat it be rehabilitated or mutualized, the Commission shall prepare a planof rehabilitation or mutualization. If at any time a receiver, other than theCommission, of a delinquent insurer reports to the court that it is in thebest interests of the policyholders and creditors of the insurer that it berehabilitated or mutualized, the receiver shall submit a plan ofrehabilitation or mutualization to the court for its approval. The plan mayinclude a provision imposing liens upon the net equities of policyholders ofthe insurer, and in the case of life insurers, a provision imposing amoratorium upon the loan or cash surrender values of the policies forwhatever period of time is necessary. A hearing on the plan shall be held andnotice of the hearing given in a manner prescribed by either the Commissionor the court. After the hearing, the plan may be approved, disapproved, ormodified by the Commission or the court.

(Code 1950, § 38-139; 1952, c. 317, § 38.1-142; 1986, c. 562.)