Virginia insurance regulators have given Casualty Reciprocal Exchange until July 2 to explain why it should not have its license to operate in the state revoked.

The Virginia State Corporation Commission Bureau of Insurance has recommended the license be revoked at that time, records show.

The Missouri-based insurer, licensed in Virginia since July 2, 1920, had its license suspended in the state March 14, 2003, because of a failure to eliminate a surplus impairment. On Aug. 18, 2004, a Cole County, Miss., circuit court entered an order of liquidation after finding the company insolvent.

The Missouri Department of Insurance has been serving as the company’s liquidator.