Section 10. Licensing

A. Each application for a license or the renewal of a license as an insurance premium finance company shall be made on the applicable form prescribed and provided by the Commission. It shall be completed in accordance with the instructions accompanying the form and shall be submitted with the applicable fee and all required documents.

B. Each application for a license as an insurance premium finance company shall be accompanied by an individual questionnaire on a form prescribed by the Commission. The questionnaire shall be duly completed and executed in the following manner:

1. In the case of a sole proprietor, by the sole proprietor:

2. In the case of a partnership, by each partner; or

3. In the case of a corporation, by each officer, director, and any individual who owns or controls directly or indirectly more than 10% of the outstanding voting securities.

Individual questionnaires need not be completed and filed with applications for renewal of a license if the person required to file an individual questionnaire certifies under penalty of perjury that no change has occurred requiring an answer different from any given on the individual questionnaire last filed with the Commission.

C. Licenses are not transferable.

D. When a person ceases to be an officer, director, or ceases to have ownership or control of more than 10% of the outstanding voting securities of a licensed corporation or when a person becomes an officer, director or owner or controller of more than 10% of the outstanding voting securities of a licensed corporation, the Commission shall, within 30 days after the event, be notified of the facts in writing in detail. The notice shall be accompanied by a duly completed individual questionnaire for any new officer, director, or owner or controller of more than 10% of the outstanding voting securities. Each licensee shall supply such additional information as the Commission may request.

E. The Commission shall, within 10 days after the event be advised of the facts in writing in detail if any licensee or any person who is a partner of a licensee or who is an officer, director, or who owns or controls more than 10% of the outstanding voting securities of a licensee shall be:

1. Convicted of any crime (other than a misdemeanor resulting from the operation of a motor vehicle); or

2. Refused a license as an insurance premium finance company or an insurance agent or agency in any other jurisdiction; or

3. Declared bankrupt, or who has petitioned for the protection of the National Bankruptcy Code (11 USC § 101 et seq.), or has made an assignment for the benefit of creditors.

F. The Commission may waive as to any insurance premium finance company any or all of the provisions of subsections B through E, inclusive.

G. No license to engage in the business of financing premiums shall be issued to any individual, partnership, or corporation that is a licensed insurance agent. Nothing in this section shall be deemed to invalidate licenses for premium finance and insurance agent businesses issued to a single individual, partnership, or corporation prior to the effective date of this chapter.

Historical Notes

Derived from Regulation 6, Case No. INS890007, § 1, eff. September 1, 1989.

Statutory Authority

§ 38.2-4700 et seq. of the Code of Virginia.