6.1-58.2 - (Repealed effective October 1, 2010) Insurance business of controlled subsidiary. - Virginia Statutes

§ 6.1-58.2. (Repealed effective October 1, 2010) Insurance business ofcontrolled subsidiary.

In addition to the types of business authorized in § 6.1-58.1, a controlledsubsidiary corporation may be formed (i) to transact the type of insurancebusiness specified in § 38.2-120 and other insurance normally written underthe coverage known as financial institution blanket bonds, (ii) to underwriteinsurance indemnifying the bank, its holding companies or its affiliates, andtheir directors and officers against liability, and (iii) subject to suchconditions as the Commission may impose, to underwrite reinsurance ofmortgage guaranty insurance on loans secured by real estate made or purchasedby such controlled reinsurance subsidiary's affiliates or by a bank or banksowning such controlled subsidiary, provided such controlled subsidiarycorporations transact only the insurance business specifically permitted bythis section. The investment of any bank in the stock, services or otherobligations of such a controlled subsidiary shall not exceed two percent ofsuch bank's capital, surplus and undivided profits. Such controlledsubsidiary shall be subject to the further provisions of Title 38.2 otherwiseapplicable to insurance companies transacting a comparable business. For thepurpose of this section, a controlled subsidiary corporation may be adomestic or foreign corporation and the majority of its voting stock beowned, directly or indirectly, by (i) a bank or banks organized under thelaws of the United States, (ii) a bank or banks organized under the laws ofthis Commonwealth, (iii) a bank or banks organized under the laws of one ofthe other states of the United States, or (iv) a "bank holding company"owning a bank or banks in this Commonwealth or in another state.

(1976, c. 340; 1977, c. 190; 1986, c. 638; 1998, c. 48.)