38.2-216 - Restrictions on removal or transfer of property and on reinsurance; penalty. - Virginia Statutes

§ 38.2-216. Restrictions on removal or transfer of property and onreinsurance; penalty.

A. No domestic insurer shall remove from this Commonwealth either all orsubstantially all of its property or business without the written approval ofthe Commission.

B. No domestic insurer shall transfer or attempt to transfer substantiallyits entire property, or enter into any transaction the effect of which is tomerge substantially its entire property or business into the property orbusiness of any other company, without prior written approval of theCommission.

C. No domestic insurer shall reinsure with any other insurer all orsubstantially all of its risks without prior written approval of theCommission of the reinsurance and of the contract under which reinsurance iseffected.

D. No domestic insurer shall enter into or modify a reinsurance treaty orrisk-sharing arrangement without prior written approval of the Commission iffor any twelve-month period the reinsurance premium or anticipated change inthe ceding insurer's liabilities equals or exceeds fifty percent of theinsurer's surplus to policyholders as of the immediately preceding December31.

E. Any director or officer of the insurer consenting to and participating inany violation of this section shall be guilty of a Class 1 misdemeanor.

(Code 1950, § 38-6; 1952, c. 317, § 38.1-38; 1986, c. 562; 2000, c. 51.)