38.2-4130 - Injunction; liquidation; receivership of domestic society. - Virginia Statutes

§ 38.2-4130. Injunction; liquidation; receivership of domestic society.

No domestic society shall:

1. Exceed its powers;

2. Fail to comply with any provisions of this chapter;

3. Fail to fulfill its contracts in good faith;

4. Have a membership of less than 400 after an existence of 1 year or more; or

5. Conduct business fraudulently or in a manner hazardous to its members,creditors, the public or the business.

If the Commission, upon investigation, finds such deficiencies, it shallissue a written notice to the society citing the deficiencies, stating thereasons for dissatisfaction, and requiring that the deficiencies be correctedwithin the period it designates. The period shall be at least thirty daysbut not more than six months from the service of the notice. If theCommission believes the interest of the certificate holders of the societywill be best served by extending the period of time beyond six months, it maydo so for the period of time it considers best. If the society does notcorrect the deficiency to the satisfaction of the Commission, the Commissionmay institute delinquency proceedings against the society in the manner setout in Chapter 15 (§ 38.2-1500 et seq.) of this title. If the Commissioninstitutes a delinquency proceeding, all the provisions of Chapter 15 of thistitle with respect to the rehabilitation, liquidation, conservation andreorganization of insurers generally shall be applicable to the society.

(Code 1950, §§ 38-261, 38-275, 38-319, 38.1-592, 38.1-628; 1952, c. 317, §§38.1-638.24, 38.1-638.49; 1968, c. 654; 1986, c. 562.)