2006 Code of Virginia § 38.2-2604 - Qualification for license; net worth; deposit of securities with State Treasurer

38.2-2604. Qualification for license; net worth; deposit of securities withState Treasurer.

A. No license shall be issued to any home protection company unless theapplicant:

1. Is a Virginia corporation formed under the provisions of Article 3 (13.1-618 et seq.) of Chapter 9 of Title 13.1, or Article 3 ( 13.1-818 etseq.) of Chapter 10 of Title 13.1; or

2. Is a foreign corporation subject to regulation and licensing under thelaws of its domiciliary jurisdiction which are substantially similar to thoseprovided in this article, and has obtained a certificate of authority totransact business in this Commonwealth;

3. Furnishes the Commission with evidence satisfactory to it that themanagement of the home protection company is competent and trustworthy, andcan be reasonably expected to successfully manage the company's affairs incompliance with law;

4. Establishes to the satisfaction of the Commission that it (i) maintainsemployees or has contractual arrangements sufficient to provide the servicesor indemnity undertaken by it, and (ii) agrees to accept requests forheating, electrical and plumbing services contracted for twenty-four hoursper day, seven days per week;

5. Makes the deposit of bonds or other securities required by this section;

6. Is otherwise in compliance with this article;

7. Has filed the required application and paid the required fee;

8. Has paid all fees, taxes, and charges required by law;

9. Has the minimum net worth prescribed by this section;

10. Has filed any financial statement and any reports, certificates, or otherdocuments as the Commission deems necessary to secure a full and accurateknowledge of its affairs and financial condition; and

11. Keeps adequate, correct and complete books and records of accounts andmaintains proper accounting controls.

B. The Commission shall not issue a license to or renew the license of a homeprotection company unless it is satisfied that the financial condition, themethod of operation, and the manner of doing business enable the homeprotection company to meet its obligations to all contract holders and thatthe home protection company has otherwise complied with all the requirementsof law.

C. A home protection company shall maintain a net worth in an amount not lessthan 20% of the premiums charged on its contracts currently in force;however, the minimum required net worth shall be not less than $100,000, andthe maximum required net worth shall be that amount required of insurersunder the provisions of Article 5 ( 38.2-1024 et seq.) of Chapter 10 of thistitle.

D. No license shall be granted to any home protection company until itpresents to the Commission a certificate of the State Treasurer that bonds orother securities have been deposited with him to be held in accordance withthe provisions of and upon the terms and conditions and in the amount asprovided in Article 7 ( 38.2-1045 et seq.) of Chapter 10 of this title.

(1981, c. 530, 38.1-934; 1982, c. 132; 1984, c. 640; 1986, c. 562; 2006, c.634.)