38.2-4515 - Geographical area. - Virginia Statutes

§ 38.2-4515. Geographical area.

A. Each nonstock corporation seeking to be licensed by the Commission shallspecify the geographical area it desires to serve and shall satisfy theCommission that it is able to render the services of the plan.

B. The Commission may, after notice and hearing, license more than onenonstock corporation for the same geographical area unless the Commissionfinds that the (i) nonstock corporation's proposed method of operation ormanner of doing business is not satisfactory or (ii) licensing of more thanone nonstock corporation for the same geographical area will not promote thepublic welfare. If more than one nonstock corporation is licensed in ageographical area, the nonstock corporations in that area shall makearrangements among themselves to see that any claim filed with the wrongnonstock corporation in that area be promptly forwarded to the propernonstock corporation, if it can be determined.

C. Subscription contracts shall not be sold to persons residing outside thearea of the nonstock corporation unless they are regularly employed withinthe area. The subscription contract of a subscriber who neither lives nor isemployed within the area shall be cancelled by notice given in accordancewith the terms of the subscription contract.

(1980, c. 682, § 38.1-904; 1986, c. 562.)