38.2-806 - Defense of action by unlicensed insurer. - Virginia Statutes

§ 38.2-806. Defense of action by unlicensed insurer.

A. Before any unlicensed insurer files or causes to be filed any pleading inany action, suit or proceeding instituted against it, that insurer shalleither:

1. Deposit cash or securities with the clerk of the court in which theaction, suit or proceeding is pending, or file with the clerk a bond in anamount to be fixed by the court which shall be sufficient to secure thepayment of any final judgment; or

2. Procure a certificate of authority and a license to transact the businessof insurance in this Commonwealth.

B. The court may order a postponement in any action, suit or proceeding inwhich service is made in the manner provided in § 38.2-802 or § 38.2-803 toafford the unlicensed insurer reasonable opportunity to comply with theprovisions of subsection A of this section and to defend the action.

C. Nothing in subsection A of this section shall be construed to prevent anyunlicensed insurer from appearing specially in the suit or other proceedingin which service was made in the manner provided in this article on theground either that (i) the insurer has not done any of the acts listed in §38.2-801, or (ii) the person on whom service was made pursuant to § 38.2-803was not doing any of the acts listed in § 38.2-803.

(1952, c. 317, § 38.1-69; 1986, c. 562.)