If at any time the Commission acting as the receiver finds that it is in the best interests of the policyholders and creditors of a delinquent insurer that it be rehabilitated or mutualized, the Commission shall prepare a plan of rehabilitation or mutualization. If at any time a receiver, other than the Commission, of a delinquent insurer reports to the court that it is in the best interests of the policyholders and creditors of the insurer that it be rehabilitated or mutualized, the receiver shall submit a plan of rehabilitation or mutualization to the court for its approval. The plan may include a provision imposing liens upon the net equities of policyholders of the insurer, and in the case of life insurers, a provision imposing a moratorium upon the loan or cash surrender values of the policies for whatever period of time is necessary. A hearing on the plan shall be held and notice of the hearing given in a manner prescribed by either the Commission or the court. After the hearing, the plan may be approved, disapproved, or modified by the Commission or the court.
Code 1950, § 38-139; 1952, c. 317, § 38.1-142; 1986, c. 562.
Structure Code of Virginia
Chapter 15 - Rehabilitation and Liquidation of Insurers
§ 38.2-1502. Jurisdiction and procedure
§ 38.2-1503. Grounds for delinquency proceedings commenced by Commission against domestic insurer
§ 38.2-1504. Requirements when proceedings instituted by any person other than Commission
§ 38.2-1505. Commission may apply for receiver and for other relief; what orders court may enter
§ 38.2-1507. Further procedure; injunction may be issued
§ 38.2-1508. Powers of Commission when authorized to rehabilitate or liquidate companies
§ 38.2-1510. Commission may appoint assistants in connection with rehabilitation or liquidation
§ 38.2-1511. Borrowing on pledge of assets
§ 38.2-1512. Rights and liabilities fixed upon liquidation
§ 38.2-1513. Voidable transfers
§ 38.2-1514. Priority of claims for wages
§ 38.2-1515. Mutual debts or credits, how treated
§ 38.2-1516. Receivers to file reports, etc., with Commission
§ 38.2-1517. What included in annual report of Commission
§ 38.2-1518. Rehabilitation or mutualization of companies
§ 38.2-1519. Termination of rehabilitation; when liquidation may be entered
§ 38.2-1520. Liquidation of alien insurers
§ 38.2-1521. Conservation of assets of foreign or alien insurer; when liquidation may be entered