§ 38.2-1617. Termination of operation of Association; expiration of chapter.
A. The Commission shall by order terminate the operation of the Associationfor any class of insurance covered by this chapter with respect to which ithas found, after hearing, that there is in effect a statutory or voluntaryplan which:
1. Is a permanent plan that is adequately funded or for which adequatefunding is provided; and
2. Extends or will extend to the policyholders and residents of thisCommonwealth protection and benefits with respect to insolvent insurers notsubstantially less favorable and effective to those policyholders andresidents than the protection and benefits provided with respect to theclasses of insurance under this chapter.
B. The Commission shall, by the same order, authorize discontinuance offuture payments by insurers to the Association regarding the same classes ofinsurance. However, the assessments and payments shall continue, asnecessary, to pay (i) covered claims of insurers determined to be insolventprior to the order and (ii) the related expenses not covered by any otherplan.
C. In the event the operation of the Association is terminated for all otherclasses of insurance within its scope, the Association shall, as soon aspossible, distribute the balance of moneys and assets remaining. Distributionshall be made after the Association has settled all prior insurerinsolvencies not covered by any other plan, including their related expenses. The distribution shall be made to the insurers that are then writing in thisCommonwealth policies of the classes of insurance covered by this chapter andthat had made payments to the Association. Distribution shall be made using apro rata method based upon the aggregate of the payments made by therespective insurers during the five years immediately preceding the date ofthe order. Upon completion of the distribution for all of the classes ofinsurance covered by this chapter, this chapter shall be deemed to haveexpired.
§ 38.2-1617. Termination of operation of Association; expiration of chapter.
A. The Commission shall by order terminate the operation of the Associationfor any class of insurance covered by this chapter with respect to which ithas found, after hearing, that there is in effect a statutory or voluntaryplan which:
1. Is a permanent plan that is adequately funded or for which adequatefunding is provided; and
2. Extends or will extend to the policyholders and residents of thisCommonwealth protection and benefits with respect to insolvent insurers notsubstantially less favorable and effective to those policyholders andresidents than the protection and benefits provided with respect to theclasses of insurance under this chapter.
B. The Commission shall, by the same order, authorize discontinuance offuture payments by insurers to the Association regarding the same classes ofinsurance. However, the assessments and payments shall continue, asnecessary, to pay (i) covered claims of insurers determined to be insolventprior to the order and (ii) the related expenses not covered by any otherplan.
C. In the event the operation of the Association is terminated for all otherclasses of insurance within its scope, the Association shall, as soon aspossible, distribute the balance of moneys and assets remaining. Distributionshall be made after the Association has settled all prior insurerinsolvencies not covered by any other plan, including their related expenses. The distribution shall be made to the insurers that are then writing in thisCommonwealth policies of the classes of insurance covered by this chapter andthat had made payments to the Association. Distribution shall be made using apro rata method based upon the aggregate of the payments made by therespective insurers during the five years immediately preceding the date ofthe order. Upon completion of the distribution for all of the classes ofinsurance covered by this chapter, this chapter shall be deemed to haveexpired.
§ 38.2-1617. Termination of operation of Association; expiration of chapter.
A. The Commission shall by order terminate the operation of the Associationfor any class of insurance covered by this chapter with respect to which ithas found, after hearing, that there is in effect a statutory or voluntaryplan which:
1. Is a permanent plan that is adequately funded or for which adequatefunding is provided; and
2. Extends or will extend to the policyholders and residents of thisCommonwealth protection and benefits with respect to insolvent insurers notsubstantially less favorable and effective to those policyholders andresidents than the protection and benefits provided with respect to theclasses of insurance under this chapter.
B. The Commission shall, by the same order, authorize discontinuance offuture payments by insurers to the Association regarding the same classes ofinsurance. However, the assessments and payments shall continue, asnecessary, to pay (i) covered claims of insurers determined to be insolventprior to the order and (ii) the related expenses not covered by any otherplan.
C. In the event the operation of the Association is terminated for all otherclasses of insurance within its scope, the Association shall, as soon aspossible, distribute the balance of moneys and assets remaining. Distributionshall be made after the Association has settled all prior insurerinsolvencies not covered by any other plan, including their related expenses. The distribution shall be made to the insurers that are then writing in thisCommonwealth policies of the classes of insurance covered by this chapter andthat had made payments to the Association. Distribution shall be made using apro rata method based upon the aggregate of the payments made by therespective insurers during the five years immediately preceding the date ofthe order. Upon completion of the distribution for all of the classes ofinsurance covered by this chapter, this chapter shall be deemed to haveexpired.
