A. When a domestic insurer or its agents are subject to regulatory costs in another state that are greater than those imposed in this Commonwealth upon insurers domiciled in that state or their agents, then the regulatory costs imposed by this Commonwealth on those foreign insurers or their agents shall be increased to equal the regulatory costs imposed by the other state on the domestic insurer or its agents. For the purpose of this section, regulatory cost includes (i) any deposits of securities, (ii) payment of taxes, fines, penalties or fees exacted for the privilege of doing business or (iii) any restitutions, obligations or conditions necessary for doing business.
B. For the purposes of this section an alien insurance company shall be considered domiciled in the state wherein it has the largest amount of its assets held in trust and on deposit for the benefit of its policyholders, or of its policyholders and creditors in the United States. An insurance company incorporated in Canada shall be considered domiciled in Canada.
C. Any foreign or alien insurance company subject to this section shall annually, on or before March 1, file a report with the Department of Taxation which compares the regulatory costs imposed on such insurer by this Commonwealth during the preceding calendar year to the regulatory costs that would have been imposed on a similar insurer domiciled in this Commonwealth by such insurer's state of domicile during the preceding calendar year. This report shall be filed on a form and in such detail as prescribed by the Department of Taxation. Amounts owed due to the equalization of the regulatory costs imposed on such insurer by this Commonwealth and the regulatory costs of such insurer's state of domicile shall be remitted to the Department of Taxation on or before March 1 of each year. Upon the failure of any insurance company to pay amounts due under this section before the date herein prescribed, the Department of Taxation shall impose a penalty of 10 percent of the amount due and interest shall be charged at a rate established pursuant to § 58.1-15 for the period between the due date and the date of full payment.
Code 1950, §§ 38-12, 38-13; 1952, c. 317, § 38.1-87; 1986, c. 562; 1998, c. 60; 2011, c. 850.
Structure Code of Virginia
Chapter 10 - Organization, Admission and Licensing of Insurers
§ 38.2-1000. Incorporation of domestic stock insurers
§ 38.2-1001. Incorporation of domestic mutual insurers
§ 38.2-1002. Additional requirements of articles of incorporation; name
§ 38.2-1003. When corporate status attained; bylaws filed with Commission
§ 38.2-1005.1. Conversion of a domestic mutual insurer to a domestic stock insurer
§ 38.2-1005.1:2. Formation of mutual holding company and conversion of mutual company
§ 38.2-1005.1:3. Mutual holding company membership interest
§ 38.2-1005.1:4. Contents of plan of MHC conversion
§ 38.2-1005.1:5. Adoption and approval of plan of MHC conversion
§ 38.2-1005.1:6. Corporate existence
§ 38.2-1005.1:7. Regulation and authority of a mutual holding company
§ 38.2-1005.1:8. Diversion of business to affiliates
§ 38.2-1005.1:9. Conversion of mutual holding company
§ 38.2-1005.1:10. Conflicts of interest
§ 38.2-1005.1:11. Costs and expenses
§ 38.2-1005.1:12. Failure to give notice
§ 38.2-1005.1:13. Limitation on actions
§ 38.2-1006. Conversion of a domestic stock insurer to a mutual insurer
§ 38.2-1007. Notice to policyholders of meeting to approve conversion
§ 38.2-1008. Conduct of and voting at meeting
§ 38.2-1009. Payment for shares pursuant to conversion plan
§ 38.2-1010. How acquired shares held
§ 38.2-1011. Disposition of dividends after payments provided in conversion plan
§ 38.2-1012. Jurisdiction to compel completion of mutualization
§ 38.2-1013. Venue of proceedings
§ 38.2-1014. Parties and process
§ 38.2-1016.1. Conversion of a health maintenance organization to an accident and sickness insurer
§ 38.2-1017. Applicability of Title 13.1
§ 38.2-1018. Plan of merger to be approved by Commission
§ 38.2-1019. Change of status from foreign to domestic insurer
§ 38.2-1020. Transfer of domicile from Virginia to another state
§ 38.2-1021. Change of domicile of foreign insurer to another foreign state
§ 38.2-1022. Commission to be notified of proposed transfer of domicile
§ 38.2-1025. Annual renewal of license
§ 38.2-1026. Retaliatory provisions as to taxes, fees, deposits and other requirements
§ 38.2-1027. Admission of foreign and alien insurers
§ 38.2-1028. Additional licensing requirements for stock insurers
§ 38.2-1029. Additional licensing requirements for mutual insurers
§ 38.2-1030. Surplus requirements for issuing policies without contingent liability
§ 38.2-1031. Additional requirements, alien insurers
§ 38.2-1032. Additional licensing requirements for domestic insurers
§ 38.2-1033. Additional licensing requirements for foreign insurers
§ 38.2-1034. How domestic mutual insurers may acquire initial surplus
§ 38.2-1037. Exceptions for licensed and operating insurers
§ 38.2-1039.1. Risk retention groups
§ 38.2-1040. Refusal, suspension or revocation of license
§ 38.2-1041. Notice to company of proposed suspension or revocation
§ 38.2-1042. Agent's authority likewise suspended or revoked
§ 38.2-1043. Suspension or revocation published
§ 38.2-1044. New business prohibited
§ 38.2-1045. Deposits required of insurers generally
§ 38.2-1046. Purpose of deposits; enforcement of lien
§ 38.2-1047. How deposits applied to payment of claims; deficit to be made good
§ 38.2-1048. Return of deposits
§ 38.2-1049. Alternate deposit requirements
§ 38.2-1050. Voluntary deposit in excess of amount required
§ 38.2-1052. Exchange of securities
§ 38.2-1053. Interest on deposits; to whom paid
§ 38.2-1054. Duty of State Treasurer when securities deposited are paid
§ 38.2-1055. Annual report of State Treasurer to Commission
§ 38.2-1057. Assessment for expense of holding deposits; Insurance Collateral Assessment Fund
§ 38.2-1058. Felony for State Treasurer to dispose of securities illegally