6.2-887 - (Effective October 1, 2010) Insurance business of controlled subsidiary.
§ 6.2-887. (Effective October 1, 2010) Insurance business of controlledsubsidiary.
A. In addition to the types of business authorized in § 6.2-885, a controlledsubsidiary corporation that is a domestic or foreign corporation, themajority of the voting stock of which is owned, directly or indirectly, by(i) a bank or banks organized under the laws of the United States, (ii) abank or banks organized under the laws of the Commonwealth, (iii) a bank orbanks organized under the laws of another state, or (iv) a bank holdingcompany owning a bank or banks in the Commonwealth or in another state, maybe formed to:
1. Transact the type of insurance business specified in § 38.2-120 and otherinsurance normally written under the coverage known as financial institutionblanket bonds;
2. Underwrite insurance indemnifying the bank, its holding companies or itsaffiliates, and their directors and officers against liability; and
3. Underwrite reinsurance of mortgage guaranty insurance, subject to suchconditions as the Commission may impose, on loans secured by real estate madeor purchased by such controlled reinsurance subsidiary's affiliates or by abank owning such controlled subsidiary.
B. Any such controlled subsidiary corporation shall (i) transact only theinsurance business specifically permitted by this section and (ii) be subjectto the further provisions of Title 38.2 otherwise applicable to insurancecompanies transacting a comparable business.
C. The investment of any bank in the stock, services, or other obligations ofsuch a controlled subsidiary shall not exceed two percent of such bank'scapital, surplus, and undivided profits.
(1968, c. 270, § 6.1-58.2; 1978, c. 797; 1988, c. 296; 1993, c. 64; 1997, c.277; 1999, c. 60; 2001, c. 508; 2003, cc. 536, 558; 2010, c. 794.)