{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/38.2-1617.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/38.2-1617.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/38.2-1617.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/38.2-1617.html"}],"law_id":361507,"edition_id":2,"section_id":361507,"structure_id":51684,"section_number":"38.2-1617","catch_line":"Termination of operation of Association; expiration of chapter","history":"1970, c. 766, \u00a7 38.1-774; 1986, c. 562.","full_text":"A\n\nThe Commission shall by order terminate the operation of the Association for any class of insurance covered by this chapter with respect to which it has found, after hearing, that there is in effect a statutory or voluntary plan which:\n\n1\n\nIs a permanent plan that is adequately funded or for which adequate funding is provided; and\n\n2\n\nExtends or will extend to the policyholders and residents of this Commonwealth protection and benefits with respect to insolvent insurers not substantially less favorable and effective to those policyholders and residents than the protection and benefits provided with respect to the classes of insurance under this chapter.\n\nB\n\nThe Commission shall, by the same order, authorize discontinuance of future payments by insurers to the Association regarding the same classes of insurance. However, the assessments and payments shall continue, as necessary, to pay (i) covered claims of insurers determined to be insolvent prior to the order and (ii) the related expenses not covered by any other plan.\n\nC\n\nIn the event the operation of the Association is terminated for all other classes of insurance within its scope, the Association shall, as soon as possible, distribute the balance of moneys and assets remaining. Distribution shall be made after the Association has settled all prior insurer insolvencies not covered by any other plan, including their related expenses. The distribution shall be made to the insurers that are then writing in this Commonwealth policies of the classes of insurance covered by this chapter and that had made payments to the Association. Distribution shall be made using a pro rata method based upon the aggregate of the payments made by the respective insurers during the five years immediately preceding the date of the order. Upon completion of the distribution for all of the classes of insurance covered by this chapter, this chapter shall be deemed to have expired.\n\n","order_by":null,"text":{"0":{"id":1345538,"text":"The Commission shall by order terminate the operation of the Association for any class of insurance covered by this chapter with respect to which it has found, after hearing, that there is in effect a statutory or voluntary plan which:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":1345539,"text":"Is a permanent plan that is adequately funded or for which adequate funding is provided; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":1345540,"text":"Extends or will extend to the policyholders and residents of this Commonwealth protection and benefits with respect to insolvent insurers not substantially less favorable and effective to those policyholders and residents than the protection and benefits provided with respect to the classes of insurance under this chapter.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":1345541,"text":"The Commission shall, by the same order, authorize discontinuance of future payments by insurers to the Association regarding the same classes of insurance. However, the assessments and payments shall continue, as necessary, to pay (i) covered claims of insurers determined to be insolvent prior to the order and (ii) the related expenses not covered by any other plan.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":1345542,"text":"In the event the operation of the Association is terminated for all other classes of insurance within its scope, the Association shall, as soon as possible, distribute the balance of moneys and assets remaining. Distribution shall be made after the Association has settled all prior insurer insolvencies not covered by any other plan, including their related expenses. The distribution shall be made to the insurers that are then writing in this Commonwealth policies of the classes of insurance covered by this chapter and that had made payments to the Association. Distribution shall be made using a pro rata method based upon the aggregate of the payments made by the respective insurers during the five years immediately preceding the date of the order. Upon completion of the distribution for all of the classes of insurance covered by this chapter, this chapter shall be deemed to have expired.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":51684,"edition_id":2,"name":"Establishment and Operation of the Association","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":51683,"metadata":{"child_laws":19,"child_structures":0},"date_created":"2026-08-02 02:46:23","date_modified":"2026-08-02 12:33:03","permalink":{"id":1439215,"object_type":"structure","relational_id":51684,"identifier":"1","token":"38.2\/16\/1","url":"\/38.2\/16\/1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51683,"edition_id":2,"name":"Virginia Property and Casualty Insurance Guaranty Association","identifier":"16","label":"chapter","depth":2,"order_by":16,"parent_id":51644,"metadata":{"child_laws":25,"child_structures":2},"date_created":"2026-08-02 02:46:23","date_modified":"2026-08-02 12:33:03","permalink":{"id":1439213,"object_type":"structure","relational_id":51683,"identifier":"16","token":"38.2\/16","url":"\/38.2\/16\/","edition_id":2,"permalink":0,"preferred":1}},{"id":51644,"edition_id":2,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":88,"parent_id":null,"metadata":{"child_laws":1890,"child_structures":173},"date_created":"2026-08-02 02:45:30","date_modified":"2026-08-02 12:32:55","permalink":{"id":1437663,"object_type":"structure","relational_id":51644,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":361489,"structure_id":51684,"section_number":"38.2-1600","catch_line":"Purpose","url":"\/38.2-1600\/","token":"38.2\/16\/1\/38.2-1600","metadata":false},{"id":361490,"structure_id":51684,"section_number":"38.2-1601","catch_line":"Application","url":"\/38.2-1601\/","token":"38.2\/16\/1\/38.2-1601","metadata":false},{"id":361491,"structure_id":51684,"section_number":"38.2-1602","catch_line":"Liberal construction","url":"\/38.2-1602\/","token":"38.2\/16\/1\/38.2-1602","metadata":false},{"id":361492,"structure_id":51684,"section_number":"38.2-1603","catch_line":"Definitions","url":"\/38.2-1603\/","token":"38.2\/16\/1\/38.2-1603","metadata":false},{"id":361493,"structure_id":51684,"section_number":"38.2-1604","catch_line":"Association created; members; divided into three accounts","url":"\/38.2-1604\/","token":"38.2\/16\/1\/38.2-1604","metadata":false},{"id":361494,"structure_id":51684,"section_number":"38.2-1605","catch_line":"Board of directors","url":"\/38.2-1605\/","token":"38.2\/16\/1\/38.2-1605","metadata":false},{"id":361495,"structure_id":51684,"section_number":"38.2-1606","catch_line":"Duties and powers of Association","url":"\/38.2-1606\/","token":"38.2\/16\/1\/38.2-1606","metadata":{"court_decisions":{"0":{"name":"Miller v. Potomac Hospital Foundation","case_number":"0751072","citation":"653 S.E.2d 592","date":"2007-12-11","url":"https:\/\/www.courtlistener.com\/opinion\/1062910\/miller-v-potomac-hospital-foundation\/","abstract":" .\u202f.\u202f. 653 S.E.2d 592 (2007) .\u202f.\u202f. ","court_html":"COA<\/abbr>"},"1":{"name":"Franklin Mortgage Corp. v. Walker","case_number":"Record No. 0725-86-4","citation":"367 S.E.2d 191","date":"1988-04-05","url":"https:\/\/www.courtlistener.com\/opinion\/1225849\/franklin-mortgage-corp-v-walker\/","abstract":" .\u202f.\u202f. Opinion .\u202f.\u202f. ","court_html":"COA<\/abbr>"},"2":{"name":"RB&F Coal, Incorporated v. Deloris Mullins","case_number":"15-1656","citation":"842 F.3d 279","date":"2016-11-18","url":"https:\/\/www.courtlistener.com\/opinion\/4322787\/rbf-coal-incorporated-v-deloris-mullins\/","abstract":" .\u202f.\u202f. Affirmed by published opinion. Judge FLOYD wrote the opinion, in which Judge WILKINSON and Judge .\u202f.\u202f. ","court_html":"Court of Appeals for the Fourth Circuit"},"3":{"name":" .\u202f.\u202f. Boyd & Stevenson Coal Co. v. Director, Office of Workers' .\u202f.\u202f. ","case_number":"02-1088","citation":"407 F.3d 663","date":"2005-07-21","url":"https:\/\/www.courtlistener.com\/opinion\/2968172\/boyd-stevenson-coal-co-v-director-office-of-workers-compensation\/","abstract":" .\u202f.\u202f. Vacated and remanded with instructions by published opinion. Judge WIDENER wrote the opinion, in .\u202f.\u202f. ","court_html":"Court of Appeals for the Fourth Circuit"},"4":{"name":" .\u202f.\u202f. Boyd And Stevenson Coal Company v. Director, Office Of .\u202f.\u202f. ","case_number":"02-1088","citation":"407 F.3d 663","date":"2005-07-21","url":"https:\/\/www.courtlistener.com\/opinion\/790203\/boyd-and-stevenson-coal-company-v-director-office-of-workers\/","abstract":" .\u202f.\u202f. 407 F.3d 663 .\u202f.\u202f. ","court_html":"Court of Appeals for the Fourth Circuit"},"5":{"name":"Uninsured Employer's Fund v. Mounts","case_number":"2116963","citation":"484 S.E.2d 140","date":"1997-04-22","url":"https:\/\/www.courtlistener.com\/opinion\/1067492\/uninsured-employers-fund-v-mounts\/","abstract":" .\u202f.\u202f. 484 S.E.2d 140 (1997) .\u202f.\u202f. ","court_html":"COA<\/abbr>"},"6":{"name":"Uninsured Employer's Fund v. Mounts","case_number":"Record 971074","citation":"497 S.E.2d 464","date":"1998-02-27","url":"https:\/\/www.courtlistener.com\/opinion\/1059926\/uninsured-employers-fund-v-mounts\/","abstract":" .\u202f.\u202f. 497 S.E.2d 464 (1998) .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"7":{"name":" .\u202f.\u202f. Northland Insurance v. Virginia Property & Casualty .\u202f.\u202f. ","case_number":"Record No. 891388","citation":"240 Va. 115","date":"1990-06-08","url":"https:\/\/www.courtlistener.com\/opinion\/6929590\/northland-insurance-v-virginia-property-casualty-insurance-guaranty\/","abstract":" .\u202f.\u202f. JUSTICE WHITING .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"8":{"name":"Northland Ins. v. Va. Prop. & Cas. Ins.","case_number":"Record No. 891388","citation":"392 S.E.2d 682","date":"1990-06-08","url":"https:\/\/www.courtlistener.com\/opinion\/1303366\/northland-ins-v-va-prop-cas-ins\/","abstract":" .\u202f.\u202f. 392 S.E.2d 682 (1990) .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"9":{"name":"Uninsured Employer's Fund v. Flanary","case_number":"1521973","citation":"497 S.E.2d 912","date":"1998-04-21","url":"https:\/\/www.courtlistener.com\/opinion\/1066923\/uninsured-employers-fund-v-flanary\/","abstract":" .\u202f.\u202f. 497 S.E.2d 912 (1998) .\u202f.\u202f. ","court_html":"COA<\/abbr>"}}}},{"id":361496,"structure_id":51684,"section_number":"38.2-1607","catch_line":"Plan of operation","url":"\/38.2-1607\/","token":"38.2\/16\/1\/38.2-1607","metadata":{"court_decisions":""}},{"id":361497,"structure_id":51684,"section_number":"38.2-1608","catch_line":"Duties and powers of Commission; judicial review","url":"\/38.2-1608\/","token":"38.2\/16\/1\/38.2-1608","metadata":{"court_decisions":""}},{"id":361498,"structure_id":51684,"section_number":"38.2-1609","catch_line":"Insured's rights and liabilities; settlements binding on receiver or liquidator; priority of claims; statements to be filed with receiver or liquidator","url":"\/38.2-1609\/","token":"38.2\/16\/1\/38.2-1609","metadata":{"court_decisions":""}},{"id":361499,"structure_id":51684,"section_number":"38.2-1610","catch_line":"Exhaustion of remedies under policy; claims recoverable from more than one association","url":"\/38.2-1610\/","token":"38.2\/16\/1\/38.2-1610","metadata":{"court_decisions":{"0":{"name":"Uninsured Employer's Fund v. Flanary","case_number":"1521973","citation":"497 S.E.2d 912","date":"1998-04-21","url":"https:\/\/www.courtlistener.com\/opinion\/1066923\/uninsured-employers-fund-v-flanary\/","abstract":" .\u202f.\u202f. 497 S.E.2d 912 (1998) .\u202f.\u202f. ","court_html":"COA<\/abbr>"},"1":{"name":" .\u202f.\u202f. Northland Insurance v. Virginia Property & Casualty .\u202f.\u202f. ","case_number":"Record No. 891388","citation":"240 Va. 115","date":"1990-06-08","url":"https:\/\/www.courtlistener.com\/opinion\/6929590\/northland-insurance-v-virginia-property-casualty-insurance-guaranty\/","abstract":" .\u202f.\u202f. JUSTICE WHITING .\u202f.\u202f. ","court_html":"SCV<\/abbr>"},"2":{"name":"Northland Ins. v. Va. Prop. & Cas. Ins.","case_number":"Record No. 891388","citation":"392 S.E.2d 682","date":"1990-06-08","url":"https:\/\/www.courtlistener.com\/opinion\/1303366\/northland-ins-v-va-prop-cas-ins\/","abstract":" .\u202f.\u202f. 392 S.E.2d 682 (1990) .\u202f.\u202f. ","court_html":"SCV<\/abbr>"}}}},{"id":361501,"structure_id":51684,"section_number":"38.2-1611","catch_line":"Aids in detection and prevention of insurer insolvencies","url":"\/38.2-1611\/","token":"38.2\/16\/1\/38.2-1611","metadata":{"court_decisions":""}},{"id":361500,"structure_id":51684,"section_number":"38.2-1611.1","catch_line":"Tax write-offs of certificates of contribution","url":"\/38.2-1611.1\/","token":"38.2\/16\/1\/38.2-1611.1","metadata":false},{"id":361502,"structure_id":51684,"section_number":"38.2-1612","catch_line":"Examination and regulation of Association by Commission; annual financial report","url":"\/38.2-1612\/","token":"38.2\/16\/1\/38.2-1612","metadata":false},{"id":361503,"structure_id":51684,"section_number":"38.2-1613","catch_line":"Exemption from payment of fees and taxes","url":"\/38.2-1613\/","token":"38.2\/16\/1\/38.2-1613","metadata":{"court_decisions":""}},{"id":361504,"structure_id":51684,"section_number":"38.2-1614","catch_line":"Repealed","url":"\/38.2-1614\/","token":"38.2\/16\/1\/38.2-1614","metadata":false},{"id":361505,"structure_id":51684,"section_number":"38.2-1615","catch_line":"No liability for action taken in good faith","url":"\/38.2-1615\/","token":"38.2\/16\/1\/38.2-1615","metadata":false},{"id":361506,"structure_id":51684,"section_number":"38.2-1616","catch_line":"Stay of proceedings against insolvent insurer; setting aside judgment, etc.; access to records","url":"\/38.2-1616\/","token":"38.2\/16\/1\/38.2-1616","metadata":{"court_decisions":""}},{"id":361507,"structure_id":51684,"section_number":"38.2-1617","catch_line":"Termination of operation of Association; expiration of chapter","url":"\/38.2-1617\/","token":"38.2\/16\/1\/38.2-1617","metadata":false}],"previous_section":{"id":361506,"structure_id":51684,"section_number":"38.2-1616","catch_line":"Stay of proceedings against insolvent insurer; setting aside judgment, etc.; access to records","url":"\/38.2-1616\/","token":"38.2\/16\/1\/38.2-1616","metadata":{"court_decisions":""}},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1617\/","history_text":"

This law was first created in 1970. The record of its establishment is cataloged in chapter 766 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1970 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1986, chapter 562.<\/p>","references":false,"refers_to":false,"permalink":{"id":1439289,"object_type":"law","relational_id":361507,"identifier":"38.2-1617","token":"38.2\/16\/1\/38.2-1617","url":"\/38.2-1617\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/38.2-1617\/","token":"38.2\/16\/1\/38.2-1617","dublin_core":{"Title":"Termination of operation of Association; expiration of chapter","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1617","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Commission<\/span> shall by order<\/span> terminate the operation of the Association<\/span> for any class of insurance<\/span> covered by this chapter with respect to which it has found, after hearing<\/span>, that there is in effect a statutory or voluntary plan which: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Is a permanent plan that is adequately funded or for which adequate funding is provided; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Extends or will extend to the policyholders and residents of this Commonwealth protection and benefits with respect to insolvent insurers<\/span> not substantially less favorable and effective to those policyholders and residents than the protection and benefits provided with respect to the classes of insurance<\/span> under this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall, by the same order<\/span>, authorize discontinuance of future payments by insurers to the Association<\/span> regarding the same classes of insurance<\/span>. However, the assessments and payments shall continue, as necessary, to pay (i) covered claims<\/span> of insurers determined to be insolvent prior to the order<\/span> and (ii) the related expenses not covered by any other plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In the event the operation of the Association<\/span> is terminated for all other classes of insurance<\/span> within its scope, the Association<\/span> shall, as soon as possible, distribute the balance of moneys and assets<\/span> remaining. Distribution shall be made after the Association<\/span> has settled all prior insurer<\/span> insolvencies not covered by any other plan, including their related expenses. The distribution shall be made to the insurers that are then writing in this Commonwealth policies of the classes of insurance<\/span> covered by this chapter and that had made payments to the Association<\/span>. Distribution shall be made using a pro rata method based upon the aggregate of the payments made by the respective insurers during the five years immediately preceding the date of the order<\/span>. Upon completion of the distribution for all of the classes of insurance<\/span> covered by this chapter, this chapter shall be deemed to have expired. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTERMINATION OF OPERATION OF ASSOCIATION; EXPIRATION OF CHAPTER (\u00a7 38.2-1617)\n\nA. The Commission shall by order terminate the operation of the Association for\nany class of insurance covered by this chapter with respect to which it has\nfound, after hearing, that there is in effect a statutory or voluntary plan\nwhich:\n\n 1. Is a permanent plan that is adequately funded or for which adequate funding\n is provided; and\n\n 2. Extends or will extend to the policyholders and residents of this\n Commonwealth protection and benefits with respect to insolvent insurers not\n substantially less favorable and effective to those policyholders and\n residents than the protection and benefits provided with respect to the\n classes of insurance under this chapter.\n\nB. The Commission shall, by the same order, authorize discontinuance of future\npayments by insurers to the Association regarding the same classes of insurance.\nHowever, the assessments and payments shall continue, as necessary, to pay (i)\ncovered claims of insurers determined to be insolvent prior to the order and\n(ii) the related expenses not covered by any other plan.\n\nC. In the event the operation of the Association is terminated for all other\nclasses of insurance within its scope, the Association shall, as soon as\npossible, distribute the balance of moneys and assets remaining. Distribution\nshall be made after the Association has settled all prior insurer insolvencies\nnot covered by any other plan, including their related expenses. The\ndistribution shall be made to the insurers that are then writing in this\nCommonwealth policies of the classes of insurance covered by this chapter and\nthat had made payments to the Association. Distribution shall be made using a\npro rata method based upon the aggregate of the payments made by the respective\ninsurers during the five years immediately preceding the date of the order. Upon\ncompletion of the distribution for all of the classes of insurance covered by\nthis chapter, this chapter shall be deemed to have expired.\n\nHISTORY: 1970, c. 766, \u00a7 38.1-774; 1986, c. 562.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}