§ 38.2-4613. Unearned premium reserve to be held and administered for benefitof policyholders.
A. The reserve required under § 38.2-4610.1 shall be for the security ofpolicyholders of the title insurance company as provided in this section.
B. If an order of rehabilitation or liquidation of any title insurancecompany is entered by a court of competent jurisdiction, the rehabilitator orreceiver, with the approval of the court, or the Commission if it has beendirected to rehabilitate or liquidate the title insurance company under theprovisions of Chapter 15 of this title, may (i) use assets equal to theunearned premium reserve to pay any claims for losses sustained bypolicyholders prior to the time reinsurance is effected to the extent thatthose losses are in excess of the loss or claim reserves available for theirpayment, (ii) enter into contracts for the reinsurance of the obligationsunder the outstanding title insurance policies of the company in accordancewith their terms and conditions, and (iii) use assets equal to the unearnedpremium reserve to pay the cost of reinsurance. After the payments authorizedby this subsection have been made, assets equal to any balance in theunearned premium reserve shall become general assets of the company.
C. If no such contract of reinsurance is effected, assets equal to theunearned premium reserve may be applied by the rehabilitator or receiver withthe approval of the court, or by the Commission, in the following order ofpreference: (i) all expenses incurred under this section in connection withthe receivership or rehabilitation proceedings, (ii) all allowed and unpaidclaims for losses sustained by policyholders pending at the time fixed by thecourt or the Commission for the filing of claims, and (iii) all allowedclaims for losses asserted within twenty years from the date of the entry ofthe order of rehabilitation or liquidation, which claims shall be paid in theorder of the date of their allowance by the court or the Commission. Assetsequal to any balance in the unearned premium reserve after payment of allallowed claims shall become general assets of the company. All title recordsthat the rehabilitator, or the receiver, or the Commission if appointed torehabilitate or liquidate the company, deems necessary to carry out theprovisions of this section shall be preserved for twenty years.
D. In proceedings for the rehabilitation or liquidation of a title insurancecompany that has not been declared insolvent, no assets of the company shallbe distributed to its stockholders until all claims allowed in theproceedings have been paid in full. If the proposed distribution is withintwenty years from the date of the entry of the order of rehabilitation orliquidation, the distribution may be made if general assets of the titleinsurance company sufficient to fund the unearned premium reserve to therequired amount as of the date of the entry of such order are firsttransferred to the unearned premium reserve. Upon the expiration of twentyyears from the date of the order, assets equal to any balance in the unearnedpremium reserve after payment of all allowed claims asserted within thetwenty-year period shall become general assets of the company.
§ 38.2-4613. Unearned premium reserve to be held and administered for benefitof policyholders.
A. The reserve required under § 38.2-4610.1 shall be for the security ofpolicyholders of the title insurance company as provided in this section.
B. If an order of rehabilitation or liquidation of any title insurancecompany is entered by a court of competent jurisdiction, the rehabilitator orreceiver, with the approval of the court, or the Commission if it has beendirected to rehabilitate or liquidate the title insurance company under theprovisions of Chapter 15 of this title, may (i) use assets equal to theunearned premium reserve to pay any claims for losses sustained bypolicyholders prior to the time reinsurance is effected to the extent thatthose losses are in excess of the loss or claim reserves available for theirpayment, (ii) enter into contracts for the reinsurance of the obligationsunder the outstanding title insurance policies of the company in accordancewith their terms and conditions, and (iii) use assets equal to the unearnedpremium reserve to pay the cost of reinsurance. After the payments authorizedby this subsection have been made, assets equal to any balance in theunearned premium reserve shall become general assets of the company.
C. If no such contract of reinsurance is effected, assets equal to theunearned premium reserve may be applied by the rehabilitator or receiver withthe approval of the court, or by the Commission, in the following order ofpreference: (i) all expenses incurred under this section in connection withthe receivership or rehabilitation proceedings, (ii) all allowed and unpaidclaims for losses sustained by policyholders pending at the time fixed by thecourt or the Commission for the filing of claims, and (iii) all allowedclaims for losses asserted within twenty years from the date of the entry ofthe order of rehabilitation or liquidation, which claims shall be paid in theorder of the date of their allowance by the court or the Commission. Assetsequal to any balance in the unearned premium reserve after payment of allallowed claims shall become general assets of the company. All title recordsthat the rehabilitator, or the receiver, or the Commission if appointed torehabilitate or liquidate the company, deems necessary to carry out theprovisions of this section shall be preserved for twenty years.
D. In proceedings for the rehabilitation or liquidation of a title insurancecompany that has not been declared insolvent, no assets of the company shallbe distributed to its stockholders until all claims allowed in theproceedings have been paid in full. If the proposed distribution is withintwenty years from the date of the entry of the order of rehabilitation orliquidation, the distribution may be made if general assets of the titleinsurance company sufficient to fund the unearned premium reserve to therequired amount as of the date of the entry of such order are firsttransferred to the unearned premium reserve. Upon the expiration of twentyyears from the date of the order, assets equal to any balance in the unearnedpremium reserve after payment of all allowed claims asserted within thetwenty-year period shall become general assets of the company.
§ 38.2-4613. Unearned premium reserve to be held and administered for benefitof policyholders.
A. The reserve required under § 38.2-4610.1 shall be for the security ofpolicyholders of the title insurance company as provided in this section.
B. If an order of rehabilitation or liquidation of any title insurancecompany is entered by a court of competent jurisdiction, the rehabilitator orreceiver, with the approval of the court, or the Commission if it has beendirected to rehabilitate or liquidate the title insurance company under theprovisions of Chapter 15 of this title, may (i) use assets equal to theunearned premium reserve to pay any claims for losses sustained bypolicyholders prior to the time reinsurance is effected to the extent thatthose losses are in excess of the loss or claim reserves available for theirpayment, (ii) enter into contracts for the reinsurance of the obligationsunder the outstanding title insurance policies of the company in accordancewith their terms and conditions, and (iii) use assets equal to the unearnedpremium reserve to pay the cost of reinsurance. After the payments authorizedby this subsection have been made, assets equal to any balance in theunearned premium reserve shall become general assets of the company.
C. If no such contract of reinsurance is effected, assets equal to theunearned premium reserve may be applied by the rehabilitator or receiver withthe approval of the court, or by the Commission, in the following order ofpreference: (i) all expenses incurred under this section in connection withthe receivership or rehabilitation proceedings, (ii) all allowed and unpaidclaims for losses sustained by policyholders pending at the time fixed by thecourt or the Commission for the filing of claims, and (iii) all allowedclaims for losses asserted within twenty years from the date of the entry ofthe order of rehabilitation or liquidation, which claims shall be paid in theorder of the date of their allowance by the court or the Commission. Assetsequal to any balance in the unearned premium reserve after payment of allallowed claims shall become general assets of the company. All title recordsthat the rehabilitator, or the receiver, or the Commission if appointed torehabilitate or liquidate the company, deems necessary to carry out theprovisions of this section shall be preserved for twenty years.
D. In proceedings for the rehabilitation or liquidation of a title insurancecompany that has not been declared insolvent, no assets of the company shallbe distributed to its stockholders until all claims allowed in theproceedings have been paid in full. If the proposed distribution is withintwenty years from the date of the entry of the order of rehabilitation orliquidation, the distribution may be made if general assets of the titleinsurance company sufficient to fund the unearned premium reserve to therequired amount as of the date of the entry of such order are firsttransferred to the unearned premium reserve. Upon the expiration of twentyyears from the date of the order, assets equal to any balance in the unearnedpremium reserve after payment of all allowed claims asserted within thetwenty-year period shall become general assets of the company.
