38.2-1326 - Approval by Commission.
§ 38.2-1326. Approval by Commission.
The Commission shall approve the application required by § 38.2-1323 unless,after giving notice and opportunity to be heard, it determines that:
1. After the change of control, the insurer would not be able to satisfy therequirements for the issuance of a license to write the classes of insurancefor which it is presently licensed;
2. The acquisition of control would lessen competition substantially or tendto create a monopoly in insurance in this Commonwealth;
3. The financial condition of any acquiring person might jeopardize thefinancial stability of the insurer, or prejudice the interest of itspolicyholders;
4. Any plans or proposals of the acquiring party to liquidate the insurer,sell its assets or consolidate or merge it with any person, or to make anyother material change in its business or corporate structure or management,are unfair and unreasonable to policyholders of the insurer and not in thepublic interest;
5. The competence, experience, and integrity of those persons who wouldcontrol the operation of the insurer are such that it would not be in theinterest of policyholders of the insurer and of the public to permit theacquisition of control; or
6. After the change of control, the insurer's surplus to policyholders wouldnot be reasonable in relation to its outstanding liabilities or adequate toits financial needs.
(1977, c. 414, § 38.1-178.1:4; 1986, c. 562.)