Chap. 399.—An ACT to regulate the appointment of receiver for insurance
companies. [S B 116]
Approved March 20, 1918.

Be it enacted by the general assembly of Virginia, That no court
of equity in this State shall place any insurance company, chartered
under the laws of this State, or doing business in this State, an ap-
plication of any person other than the insurance commissioner of this
State, in the hands of any receiver until the applicant for such re-
ceivership shall have proceeded as follows:

First. The complainant in a bill in equity for such receivership
must before presenting his bill to a court of equity or judge thereof
in vacation for action thereon, present a copy of said bill to a
board consisting of the insurance commissioner of this State, and
a member of the State corporation commission designated by the
sald corporation commission for that purpose for action thereon,
as hereinafter set forth, and give reasonable notice to the insurance
company to be affected thereby that said bill has been lodged with
said board.

Second. The insurance company affected thereby shall have ten
days after the service of said notice within which to lodge with the
said board a copy of the answer which it proposes to file to said bill,
and thereupon, said board shall proceed to investigate and within a
reasonable time determine on the merits of said application for re-
ceivership, and shall fix a time for the hearing of said investigation
of the matters and things involved in said pleading.

Third. Said board shall have the power to issue summons for
witnesses, administer oaths, call for books and papers, and hear
evidence of witnesses, either oral or through the medium of deposi-
tions, or both, and pending said investigation the insurance com-
missioner of this State may in his discretion cause to be made any
examination of the affairs of such insurance company as by law he is
entitled to cause to be made, and the result thereof to be also con-
sidered by said board on said investigation.

Fourth. After said board has completed said investigation, it
shall make a recommendation to the court in which the bill is ad-
dressed that the receiver prayed for be appointed, or be not ap-
pointed, and if the members of said board be divided in their opin-
ion on this question, they will so report and thereupon the court
shall consider the application for a receiver on its merits, and ap-
point or refuse to appoint such receiver as it may be advised.

Fifth. The provisions of this act shall not apply to the case in
which the complainant is a judgment creditor of such insurance
company, and complainant’s judgment has remained for a period
of thirty days unpaid, unsuspended or superseded.