38.2-1359 - Licensure.
§ 38.2-1359. Licensure.
A. No domestic insurer shall permit a person to act, and no person shall act,in the capacity of a managing general agent for an insurer domiciled in thisCommonwealth unless such person is licensed in this Commonwealth to act as amanaging general agent.
B. No foreign or alien insurer shall permit a person to act, and no personshall act, in the capacity of a managing general agent representing such aninsurer unless such person is licensed (i) in this Commonwealth to act as amanaging general agent or (ii) in another state under laws that aresubstantially similar to the provisions of this article.
C. The Commission may license as a managing general agent any individual orbusiness entity that has complied with the requirements of this article andany regulations concerning licensure that may be promulgated by theCommission. The Commission may refuse to issue a license, subject to theright of the applicant to demand a hearing on the application, if theCommission believes the applicant, any person named on the application, orany member, principal, officer or director of the applicant is nottrustworthy to act as a managing general agent, or that any of the foregoinghas given cause for revocation or suspension of such license, or has failedto comply with any prerequisite for issuance of such license.
D. Any person seeking a license pursuant to subsection A or clause (i) ofsubsection B of this section shall apply for such license in a formacceptable to the Commission, and shall pay to the Commission a nonrefundableapplication fee in an amount prescribed by the Commission. Such fee shall benot less than $500 and not more than $1,000. Every licensed managing generalagent shall pay to the Commission a nonrefundable biennial renewal fee in anamount prescribed by the Commission. Such fee shall be not less than $500 andnot more than $1,000. Between May 1 and June 1 of the renewal year, eachlicensed managing general agent shall submit to the Commission a renewalapplication form and fee in the manner and form prescribed by the Commission.All fees shall be collected by the Commission, paid into the state treasury,and placed to the credit of the fund for maintenance of the Bureau ofInsurance as provided in subsection B of § 38.2-400. Each license and renewedlicense shall expire on June 30 of the appropriate year.
E. The Commission may require that the managing general agent be bonded in amanner acceptable to the Commission for the protection of the insurer, andshall require, as a prerequisite to licensure or license renewal, acertification or attestation from the applicant that such bond is in effect.
F. The Commission may require a managing general agent to maintain an errorsand omissions policy that is acceptable to the Commission, and shall require,as a prerequisite to licensure or license renewal, a certification orattestation from the applicant that such policy is in effect.
G. Except where prohibited by state or federal law, by submitting anapplication for license, the applicant shall be deemed to have appointed theclerk of the Commission as the agent for service of process on the applicantin any action or proceeding arising in this Commonwealth out of or inconnection with the exercise of the license. Such appointment of the clerk ofthe Commission as agent for service of process shall be irrevocable duringthe period within which a cause of action against the applicant may arise outof transactions with respect to subjects of insurance in this Commonwealth.Service of process on the clerk of the Commission shall conform to theprovisions of Chapter 8 (§ 38.2-800 et seq.) of this title.
H. A person seeking licensure shall provide evidence, in a form acceptable tothe Commission, of its appointments or contracts as a managing general agent.The Commission may refuse to renew the license of a person that has not beenappointed by, or otherwise authorized to act for, an insurer as a managinggeneral agent.
(2001, c. 706.)