38.2-1104 - Formation; licensure after examination; amendment of articles; principal and home office.

§ 38.2-1104. Formation; licensure after examination; amendment of articles;principal and home office.

A. Captive insurers with shares of capital stock shall be incorporated underArticle 3 (§ 13.1-618 et seq.) of Chapter 9 of Title 13.1 as modified by thistitle and, except as provided in this title, shall be subject to all thegeneral restrictions and shall have all the general powers imposed andconferred upon such corporations by law.

B. Captive insurers without shares of capital stock shall be incorporatedunder Article 3 (§ 13.1-818 et seq.) of Chapter 10 of Title 13.1, as modifiedby this title and, except as provided in this title, shall be subject to allthe general restrictions and shall have all the general powers imposed andconferred upon such corporations by law.

C. 1. No charter shall be granted to any captive insurer until the Commissionreceives a certificate from the State Treasurer showing that (i) cash, bondsor other securities in the amount required by § 38.2-1105 have been depositedor (ii) an irrevocable letter of credit in that amount has been deposited andis to be held under the provisions, terms and conditions set forth in §38.2-1105.

2. When the certificate has been presented to the Commission, the Commissionmay make or direct to be made an examination of the captive insurer.

3. The Commission shall issue a license if the captive insurer complies withthis chapter.

D. Any amendment of the articles of incorporation of a captive insurer shallbe pursuant to Article 11 (§ 13.1-705 et seq.) of Chapter 9 or of Article 10(§ 13.1-884 et seq.) of Chapter 10 of Title 13.1.

E. The principal and home office of every captive insurer shall be in thisCommonwealth.

(1980, c. 665, § 38.1-920; 1986, c. 562.)