2006 Code of Virginia § 38.2-4708 - Examination of books and records of company; bond; rules and regulations; order by Commission to re...

38.2-4708. Examination of books and records of company; bond; rules andregulations; order by Commission to remedy concerns.

A. 1. The Commission is empowered to examine the books and records of aninsurance premium finance company.

2. The Commission is empowered to require an insurance premium financecompany to enter into bond with surety approved by the Commission, in theamount determined as reasonable by the Commission, and conditioned to protectits customers and the public in the manner required by law. The aggregateliability of the surety for all breaches of the conditions of the bond shallin no event exceed the penalty of the bond. The surety on the bond shall havethe right to cancel the bond upon thirty days' notice in writing to theCommission and shall be relieved of liability for any breach of conditionoccurring after the effective date of the cancellation.

3. Any rules and regulations issued by the Commission with respect to theoperation of insurance premium finance companies may include, withoutlimitation, rules and regulations for the cancellation of policies byinsurance premium finance companies, for the notice required to be given tothe insured and the insurer, and for the mutual obligations and duties ofinsurers and insurance premium finance companies with regard to thecancellation of policies and the required notice.

B. If the Commission finds (i) that an insurance premium finance company'sfinancial condition, method of operation or manner of doing business does notsatisfy the Commission that the company can meet its obligations to allcustomers or (ii) that the company's continued operation in this Commonwealthis hazardous to customers and creditors in this Commonwealth and to thepublic, it may order the company to take appropriate action within aspecified time to remedy the concerns of the Commission. The Commission shallgive the insurance premium finance company ten days' notice of its findingand shall grant it the opportunity to be heard and to introduce evidence onits behalf. Any hearing with regard to the order may be informal, and therequired notice may be waived with the mutual consent of the Commission andthe company.

(1964, c. 147, 38.1-742; 1981, c. 107; 1986, c. 562.)