2006 Code of Virginia § 38.2-1026 - Retaliatory provisions as to taxes, fees, deposits and other requirements

38.2-1026. Retaliatory provisions as to taxes, fees, deposits and otherrequirements.

A. When a domestic insurer or its agents are subject to regulatory costs inanother state that are greater than those imposed in this Commonwealth uponinsurers domiciled in that state or their agents, then the regulatory costsimposed by this Commonwealth on those foreign insurers or their agents shallbe increased to equal the regulatory costs imposed by the other state on thedomestic insurer or its agents. For the purpose of this section, regulatorycost includes (i) any deposits of securities, (ii) payment of taxes, fines,penalties or fees exacted for the privilege of doing business or (iii) anyrestitutions, obligations or conditions necessary for doing business.

B. For the purposes of this section an alien insurance company shall beconsidered domiciled in the state wherein it has the largest amount of itsassets held in trust and on deposit for the benefit of its policyholders, orof its policyholders and creditors in the United States. An insurance companyincorporated in Canada shall be considered domiciled in Canada.

C. Any foreign or alien insurance company subject to this section shallannually, on or before March 1, file a report with the Commission whichcompares the regulatory costs imposed on such insurer by this Commonwealthduring the preceding calendar year to the regulatory costs that would havebeen imposed on a similar insurer domiciled in this Commonwealth by suchinsurer's state of domicile during the preceding calendar year. This reportshall be filed on a form and in such detail as prescribed by the Commission.Amounts owed due to the equalization of the regulatory costs imposed on suchinsurer by this Commonwealth and the regulatory costs of such insurer's stateof domicile shall be remitted to the Commission on or before March 1 of eachyear. Upon the failure of any insurance company to pay amounts due under thissection before the date herein prescribed, the Commission shall impose apenalty of ten percent of the amount due and interest shall be charged at arate established pursuant to 58.1-15 for the period between the due dateand the date of full payment.

(Code 1950, 38-12, 38-13; 1952, c. 317, 38.1-87; 1986, c. 562; 1998, c.60.)