# Va. Code Ann. § 38.2-1326: Approval by Commission

> Virginia · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1326

## Section

- **Citation:** Va. Code Ann. § 38.2-1326
- **Heading:** Approval by Commission
- **Jurisdiction:** Virginia
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Virginia Code / Title 38.2 / Chapter 13 / Article 5 / Section 38.2-1326

## Text

The Commission shall approve the application required by § 38.2-1323 unless, after giving notice and opportunity to be heard, it determines that:

1. After the change of control, the insurer would not be able to satisfy the requirements for the issuance of a license to write the classes of insurance for which it is presently licensed;

2. The acquisition of control would lessen competition substantially or tend to create a monopoly in insurance in this Commonwealth;

3. The financial condition of any acquiring person might jeopardize the financial stability of the insurer, or prejudice the interest of its policyholders;

4. Any plans or proposals of the acquiring party to liquidate the insurer, sell its assets or consolidate or merge it with any person, or to make any other material change in its business or corporate structure or management, are unfair and unreasonable to policyholders of the insurer and not in the public interest;

5. The competence, experience, and integrity of those persons who would control the operation of the insurer are such that it would not be in the interest of policyholders of the insurer and of the public to permit the acquisition of control;

6. After the change of control, the insurer's surplus as regards policyholders would not be reasonable in relation to its outstanding liabilities or adequate to its financial needs; or

7. The acquisition is likely to be hazardous or prejudicial to the insurance-buying public.

1977, c. 414, § 38.1-178.1:4; 1986, c. 562; 2014, c. 309 .

## Nearby sections

- [Va. Code Ann. § 38.2-1322 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1322.md)
- [Va. Code Ann. § 38.2-1323 Acquisition of control of insurers](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1323.md)
- [Va. Code Ann. § 38.2-1324 Contents of application](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1324.md)
- [Va. Code Ann. § 38.2-1325 Alternate filing materials](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1325.md)
- [Va. Code Ann. § 38.2-1326 Approval by Commission](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1326.md)
- [Va. Code Ann. § 38.2-1327 Time for hearing; order of Commission](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1327.md)
- [Va. Code Ann. § 38.2-1328 Exemption](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1328.md)
- [Va. Code Ann. § 38.2-1329 Registration of insurers that are members of holding company system](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1329.md)
- [Va. Code Ann. § 38.2-1330 Standards for transactions within an insurance holding company system; adequacy of surplus](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1330.md)
- [Va. Code Ann. § 38.2-1330.1 Dividends and other distributions](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1330.1.md)
- [Va. Code Ann. § 38.2-1331 Repealed](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1331.md)
- [Va. Code Ann. § 38.2-1332 Examinations](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1332.md)
- [Va. Code Ann. § 38.2-1332.1 Supervisory colleges](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1332.1.md)
- [Va. Code Ann. § 38.2-1332.2 Group-wide supervision of internationally active insurance groups](https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1332.2.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_VA_T38.2_C13_A5_S38.2-1326. Check the current official text before relying on it. Not legal advice.