A. No circuit court in this Commonwealth shall appoint a receiver for any domestic insurer on application of any person other than the Commission until:
- 1. The applicant has presented to the Commission a copy of a bill in equity for receivership and has given reasonable notice to the affected insurer that a copy of the bill has been presented to the Commission.
- 2. The affected insurer has been given ten days after the service of this notice to present to the Commission a copy of the answer that it proposes to file.
- 3. The Commission has investigated the merits of the application for receivership and has held a hearing on the results of the investigation. The Commission shall act within a reasonable period of time.
- 4. Within a reasonable time after completing its investigation, the Commission shall make a recommendation to the proper court regarding the appointment of the proposed receiver.
- B. The court shall appoint or refuse to appoint the proposed receiver after considering the merits of the application for a receiver.
1952, c. 317, § 38.1-130; 1986, c. 562.