A. Any domestic nonstock corporation subject to the provisions of this chapter that has the surplus required by § 38.2-1030 for domestic mutual insurers issuing policies without contingent liability may, at its option and without reincorporation, convert to a domestic mutual insurer by following the procedure set forth in this section.
B. Any nonstock corporation eligible to convert to a domestic mutual insurer under subsection A may effect such conversion by amending its articles of incorporation to delete any reference to this chapter and to comply with the provisions of § 38.2-1002 relating to the articles of incorporation of a domestic mutual insurer. Upon the issuance of a certificate of amendment by the Commission, the conversion shall be effective, such nonstock corporation shall become subject to all of the provisions of this title relating to domestic mutual insurers, and such nonstock corporation shall no longer be subject to the provisions of this chapter.
C. If any nonstock corporation converts from a health services plan organized under this chapter to a domestic mutual insurer, then at least 90 days prior to the effective date of conversion, the nonstock corporation shall comply with § 38.2-316 by filing with the Commission copies of all policies of insurance that it proposes to issue after the effective date of conversion. All subscription contracts issued and outstanding as of the effective date of conversion shall remain in force in accordance with their terms until the expiration or termination of such contracts.
D. No policy of accident and sickness insurance issued by a nonstock corporation after its conversion to a domestic mutual insurer shall deny the policyholder the right to assign his benefit, except that denial may be made where the benefit is 80 percent of covered charges or greater.
1991, c. 87; 1992, c. 473; 1994, c. 294; 1997, cc. 807, 913; 2013, cc. 136, 210.
Structure Code of Virginia
Chapter 42 - Health Services Plans
§ 38.2-4200. Applicability of chapter
§ 38.2-4202. Hospital services plans
§ 38.2-4203. Medical or surgical services plans
§ 38.2-4204. Merger of nonstock corporations
§ 38.2-4205. Dental and optometric services
§ 38.2-4206. Nonstock corporation required
§ 38.2-4207. Existing foreign nonstock corporation
§ 38.2-4208. Nonstock corporation not required to act as agent
§ 38.2-4209. Preferred provider subscription contracts
§ 38.2-4209.1. Pharmacies; freedom of choice
§ 38.2-4210. Liability of participants
§ 38.2-4211. Change of participants
§ 38.2-4212. Board of directors of nonstock corporation operating plan
§ 38.2-4213. Liability of participating providers upon merger of nonstock corporation
§ 38.2-4214. (Contingent expiration date - see notes) Application of certain provisions of law
§ 38.2-4214. (Contingent effective date - see notes) Application of certain provisions of law
§ 38.2-4214.1. Rehabilitation, liquidation, conservation
§ 38.2-4215. Payments by nonstock corporation
§ 38.2-4218. Subscriber to have free choice of medical practitioners available
§ 38.2-4219. Subscriber to be advised in writing as to benefits and limitations thereon
§ 38.2-4220. Interplan arrangements
§ 38.2-4221. Services of certain practitioners other than physicians to be covered
§ 38.2-4222. Licensing of nonstock corporations
§ 38.2-4223. Renewal of license
§ 38.2-4224. Licensing of agents
§ 38.2-4227. Misleading applications or contracts
§ 38.2-4228. Controversies involving subscription contracts
§ 38.2-4229.1. Conversion to domestic mutual insurer
§ 38.2-4229.2. Hearings and investigations on effect of other state's law
§ 38.2-4231. Registration of nonstock corporations that are members of holding company system
§ 38.2-4233. Commission approval required for certain transactions
§ 38.2-4235. Confidential treatment of information and documents