A. Subject to the requirement of § 38.2-1801, every licensed agent may sellpolicies and solicit applications for insurance for any one or more of theclasses of insurance for which he is licensed on behalf of an insurer (i)also licensed in this Commonwealth for those classes of insurance and (ii) bywhich the licensed agent has not yet been validly appointed, subject to thefollowing requirements:
1. The insurer shall, within 30 calendar days of the date of execution of thefirst insurance application or policy submitted by a licensed but not yetappointed agent, either reject such application or policy or file with theCommission a notice of appointment in a form acceptable to the Commission.The Commission shall provide a means whereby an insurer may elect to appointan agent to represent all or some of the insurers within the insurer'sholding company system or group by the submission of a single notice ofappointment for each appointment type applicable.
2. The insurer shall provide to the licensed agent, within the same 30-dayperiod, a verification that the notice of appointment has been filed with theCommission.
3. Upon receipt of the notice of appointment, the Commission shall verifythat the agent holds a valid license and that the notice has been properlycompleted and submitted. The Commission shall notify the appointing insurerif the appointment of the agent is invalid within five business days of itsreceipt of the appointment notice, and the insurer shall notify the agent inwriting of the invalid appointment within five business days of receivingsuch notice from the Commission. Any agent who sells or solicits insurance onbehalf of the insurer after being notified of an invalid appointment shall bein violation of this section and shall be subject to penalties as prescribedin §§ 38.2-218 and 38.2-1831.
4. An agent whose appointment by an insurer has been terminated by theinsurer shall be prohibited from selling or soliciting applications orpolicies on behalf of that insurer unless and until reappointed by theinsurer. Any such selling or solicitation on behalf of that insurersubsequent to such appointment termination and prior to such reappointmentshall constitute a violation of this section by the agent and shall subjectthe agent to penalties as prescribed in §§ 38.2-218 and 38.2-1831.
B. Each agent's appointment record shall be public information and shall beavailable for public inspection during normal business hours of theCommission. The Commission may charge a reasonable fee to cover the costsincurred in providing this information.
C. Each insurer shall pay a nonrefundable appointment processing fee, in anamount prescribed by the Commission, for each appointment notificationsubmitted by the insurer to the Commission.
D. The prescribed appointment fee shall not be less than $7 nor more than $25.
E. Such fees shall be billed to the insurer by the Commission on a quarterlybasis and shall be due and payable on August 10 for the quarter ending June30, on November 10 for the quarter ending September 30, on February 10 forthe quarter ending December 31, and on May 10 for the quarter ending March31. In the event that a due date falls on a weekend or holiday, payment shallbe due on the first business day following such due date.
F. Such quarterly billing shall include all appointment notificationssubmitted by the insurer during the immediately preceding quarter, regardlessof the current status of any such appointments.
G. All appointment processing fees collected by the Commission, as well aspenalties collected pursuant to subsection H, shall be paid directly into thestate treasury and placed to the credit of the fund for the maintenance ofthe Bureau of Insurance as provided in subsection B of § 38.2-400.
H. Upon the failure of the insurer to pay amounts due under this section bythe date due, the Commission:
1. Shall impose a penalty of $50 per day for each day between the date dueand the date full payment is received by the Commission. The appointment feesdescribed above shall not be considered paid in full unless and until thepenalty described herein has been received by the Commission; and
2. May, in addition to the penalty imposed above, administratively terminatethe appointment of each agent on whose behalf the appointment processing fee,including any penalty imposed pursuant to this section, was not received bythe Commission by the date due and after the insurer has been given duenotice and an opportunity to submit the overdue payment.
(1985, c. 616, § 38.1-327.44:1; 1986, c. 562; 1987, c. 521; 1988, c. 302;1994, c. 316; 2001, c. 706; 2003, c. 871; 2008, c. 357.)
A. Subject to the requirement of § 38.2-1801, every licensed agent may sellpolicies and solicit applications for insurance for any one or more of theclasses of insurance for which he is licensed on behalf of an insurer (i)also licensed in this Commonwealth for those classes of insurance and (ii) bywhich the licensed agent has not yet been validly appointed, subject to thefollowing requirements:
1. The insurer shall, within 30 calendar days of the date of execution of thefirst insurance application or policy submitted by a licensed but not yetappointed agent, either reject such application or policy or file with theCommission a notice of appointment in a form acceptable to the Commission.The Commission shall provide a means whereby an insurer may elect to appointan agent to represent all or some of the insurers within the insurer'sholding company system or group by the submission of a single notice ofappointment for each appointment type applicable.
2. The insurer shall provide to the licensed agent, within the same 30-dayperiod, a verification that the notice of appointment has been filed with theCommission.
3. Upon receipt of the notice of appointment, the Commission shall verifythat the agent holds a valid license and that the notice has been properlycompleted and submitted. The Commission shall notify the appointing insurerif the appointment of the agent is invalid within five business days of itsreceipt of the appointment notice, and the insurer shall notify the agent inwriting of the invalid appointment within five business days of receivingsuch notice from the Commission. Any agent who sells or solicits insurance onbehalf of the insurer after being notified of an invalid appointment shall bein violation of this section and shall be subject to penalties as prescribedin §§ 38.2-218 and 38.2-1831.
4. An agent whose appointment by an insurer has been terminated by theinsurer shall be prohibited from selling or soliciting applications orpolicies on behalf of that insurer unless and until reappointed by theinsurer. Any such selling or solicitation on behalf of that insurersubsequent to such appointment termination and prior to such reappointmentshall constitute a violation of this section by the agent and shall subjectthe agent to penalties as prescribed in §§ 38.2-218 and 38.2-1831.
B. Each agent's appointment record shall be public information and shall beavailable for public inspection during normal business hours of theCommission. The Commission may charge a reasonable fee to cover the costsincurred in providing this information.
C. Each insurer shall pay a nonrefundable appointment processing fee, in anamount prescribed by the Commission, for each appointment notificationsubmitted by the insurer to the Commission.
D. The prescribed appointment fee shall not be less than $7 nor more than $25.
E. Such fees shall be billed to the insurer by the Commission on a quarterlybasis and shall be due and payable on August 10 for the quarter ending June30, on November 10 for the quarter ending September 30, on February 10 forthe quarter ending December 31, and on May 10 for the quarter ending March31. In the event that a due date falls on a weekend or holiday, payment shallbe due on the first business day following such due date.
F. Such quarterly billing shall include all appointment notificationssubmitted by the insurer during the immediately preceding quarter, regardlessof the current status of any such appointments.
G. All appointment processing fees collected by the Commission, as well aspenalties collected pursuant to subsection H, shall be paid directly into thestate treasury and placed to the credit of the fund for the maintenance ofthe Bureau of Insurance as provided in subsection B of § 38.2-400.
H. Upon the failure of the insurer to pay amounts due under this section bythe date due, the Commission:
1. Shall impose a penalty of $50 per day for each day between the date dueand the date full payment is received by the Commission. The appointment feesdescribed above shall not be considered paid in full unless and until thepenalty described herein has been received by the Commission; and
2. May, in addition to the penalty imposed above, administratively terminatethe appointment of each agent on whose behalf the appointment processing fee,including any penalty imposed pursuant to this section, was not received bythe Commission by the date due and after the insurer has been given duenotice and an opportunity to submit the overdue payment.
(1985, c. 616, § 38.1-327.44:1; 1986, c. 562; 1987, c. 521; 1988, c. 302;1994, c. 316; 2001, c. 706; 2003, c. 871; 2008, c. 357.)
A. Subject to the requirement of § 38.2-1801, every licensed agent may sellpolicies and solicit applications for insurance for any one or more of theclasses of insurance for which he is licensed on behalf of an insurer (i)also licensed in this Commonwealth for those classes of insurance and (ii) bywhich the licensed agent has not yet been validly appointed, subject to thefollowing requirements:
1. The insurer shall, within 30 calendar days of the date of execution of thefirst insurance application or policy submitted by a licensed but not yetappointed agent, either reject such application or policy or file with theCommission a notice of appointment in a form acceptable to the Commission.The Commission shall provide a means whereby an insurer may elect to appointan agent to represent all or some of the insurers within the insurer'sholding company system or group by the submission of a single notice ofappointment for each appointment type applicable.
2. The insurer shall provide to the licensed agent, within the same 30-dayperiod, a verification that the notice of appointment has been filed with theCommission.
3. Upon receipt of the notice of appointment, the Commission shall verifythat the agent holds a valid license and that the notice has been properlycompleted and submitted. The Commission shall notify the appointing insurerif the appointment of the agent is invalid within five business days of itsreceipt of the appointment notice, and the insurer shall notify the agent inwriting of the invalid appointment within five business days of receivingsuch notice from the Commission. Any agent who sells or solicits insurance onbehalf of the insurer after being notified of an invalid appointment shall bein violation of this section and shall be subject to penalties as prescribedin §§ 38.2-218 and 38.2-1831.
4. An agent whose appointment by an insurer has been terminated by theinsurer shall be prohibited from selling or soliciting applications orpolicies on behalf of that insurer unless and until reappointed by theinsurer. Any such selling or solicitation on behalf of that insurersubsequent to such appointment termination and prior to such reappointmentshall constitute a violation of this section by the agent and shall subjectthe agent to penalties as prescribed in §§ 38.2-218 and 38.2-1831.
B. Each agent's appointment record shall be public information and shall beavailable for public inspection during normal business hours of theCommission. The Commission may charge a reasonable fee to cover the costsincurred in providing this information.
C. Each insurer shall pay a nonrefundable appointment processing fee, in anamount prescribed by the Commission, for each appointment notificationsubmitted by the insurer to the Commission.
D. The prescribed appointment fee shall not be less than $7 nor more than $25.
E. Such fees shall be billed to the insurer by the Commission on a quarterlybasis and shall be due and payable on August 10 for the quarter ending June30, on November 10 for the quarter ending September 30, on February 10 forthe quarter ending December 31, and on May 10 for the quarter ending March31. In the event that a due date falls on a weekend or holiday, payment shallbe due on the first business day following such due date.
F. Such quarterly billing shall include all appointment notificationssubmitted by the insurer during the immediately preceding quarter, regardlessof the current status of any such appointments.
G. All appointment processing fees collected by the Commission, as well aspenalties collected pursuant to subsection H, shall be paid directly into thestate treasury and placed to the credit of the fund for the maintenance ofthe Bureau of Insurance as provided in subsection B of § 38.2-400.
H. Upon the failure of the insurer to pay amounts due under this section bythe date due, the Commission:
1. Shall impose a penalty of $50 per day for each day between the date dueand the date full payment is received by the Commission. The appointment feesdescribed above shall not be considered paid in full unless and until thepenalty described herein has been received by the Commission; and
2. May, in addition to the penalty imposed above, administratively terminatethe appointment of each agent on whose behalf the appointment processing fee,including any penalty imposed pursuant to this section, was not received bythe Commission by the date due and after the insurer has been given duenotice and an opportunity to submit the overdue payment.
(1985, c. 616, § 38.1-327.44:1; 1986, c. 562; 1987, c. 521; 1988, c. 302;1994, c. 316; 2001, c. 706; 2003, c. 871; 2008, c. 357.)
