38.2-217 - When assets may not be distributed among stockholders. - Virginia Statutes

§ 38.2-217. When assets may not be distributed among stockholders.

No domestic insurer shall distribute its assets among its stockholders untilall risks have expired or have been cancelled, or have been replaced by thepolicies of another solvent insurer licensed to transact the business ofinsurance in this Commonwealth, and until all claims against the insurer havebeen settled. No insurer shall contract to reinsure its risks for the purposeof distributing its assets without first obtaining the written approval ofthe Commission. However, nothing in this section shall be construed toprohibit the lawful payment of dividends.

(Code 1950, §§ 38-170, 38-171; 1952, c. 317, § 38.1-39; 1986, c. 562.)