38.2-3904 - Conversion of mutual assessment life, accident and sickness insurers. - Virginia Statutes

§ 38.2-3904. Conversion of mutual assessment life, accident and sicknessinsurers.

A. Any mutual assessment life, accident and sickness insurer which chooses toremove itself from the provisions of this chapter by becoming an insurerlicensed pursuant to Chapter 10 (§ 38.2-1000 et seq.) of this title may do soby meeting the requirements of that chapter. When applying for a licensepursuant to Chapter 10, an insurer shall submit an application to theCommission that shows that each requirement of Chapter 10 has been met. Ifthe applicant does not meet these requirements, the applicant may submit forapproval a plan that includes a schedule for meeting these requirements. Theschedule must provide for compliance with these requirements within fiveyears of the approval of the application. The Commission may grant anadditional period in order to achieve compliance with the requirements ofChapter 10 after an informal hearing.

B. If the Commission approves the application, the insurer shall have all therights, privileges and responsibilities of a licensed insurer not subject tothe provisions of this chapter.

C. The Commission, upon failure of the applicant to comply with the terms ofan approved schedule, may require the applicant to adhere to the requirementsof this chapter.

(1985, c. 400, § 38.1-549.5; 1986, c. 562.)