§ 38.2-2114. Grounds and procedure for termination of policy; contents ofnotice; review by Commissioner; exceptions; immunity from liability.
A. Notwithstanding the provisions of § 38.2-2105, no policy or contractwritten to insure owner-occupied dwellings shall be canceled by an insurerunless written notice is mailed or delivered to the named insured at theaddress stated in the policy, and cancellation is for one of the followingreasons:
1. Failure to pay the premium when due;
2. Conviction of a crime arising out of acts increasing the probability thata peril insured against will occur;
3. Discovery of fraud or material misrepresentation;
4. Willful or reckless acts or omissions increasing the probability that aperil insured against will occur as determined from a physical inspection ofthe insured premises;
5. Physical changes in the property which result in the property becominguninsurable as determined from a physical inspection of the insured premises;or
6. Foreclosure efforts by the secured party against the subject propertycovered by the policy that have resulted in the sale of the property by atrustee under a deed of trust as duly recorded in the land title records ofthe jurisdiction in which the property is located.
B. No policy or contract written to insure owner-occupied dwellings shall beterminated by an insurer by refusal to renew except at the expiration of thestated policy period or term and unless the insurer or its agent acting onbehalf of the insurer mails or delivers to the named insured, at the addressstated in the policy, or delivers electronically to the address provided bythe named insured, written notice of the insurer's refusal to renew thepolicy or contract.
C. A written notice of cancellation of or refusal to renew a policy orcontract written to insure owner-occupied dwellings shall:
1. State the date that the insurer proposes to terminate the policy orcontract, which shall be at least 30 days after mailing or delivering to thenamed insured the notice of cancellation or refusal to renew. However, whenthe policy is being terminated for the reason set forth in subdivision 1 ofsubsection A of this section, the date that the insurer proposes to terminatethe policy may be less than 30 days but at least 10 days from the date ofmailing or delivery;
2. State the specific reason for terminating the policy or contract andprovide for the notification required by the provisions of §§ 38.2-608 and38.2-609 and subsection B of § 38.2-610. However, those notificationrequirements shall not apply when the policy is being canceled or not renewedfor the reason set forth in subdivision 1 of subsection A of this section;
3. Advise the insured that within 10 days of receipt of the notice oftermination he may request in writing that the Commissioner review the actionof the insurer in terminating the policy or contract;
4. Advise the insured of his possible eligibility for fire insurance coveragethrough the Virginia Property Insurance Association; and
5. Be in a type size authorized by § 38.2-311.
D. Within 10 days of receipt of the notice of termination any insured or hisattorney shall be entitled to request in writing to the Commissioner that hereview the action of the insurer in terminating a policy or contract writtento insure owner-occupied dwellings. Upon receipt of the request, theCommissioner shall promptly initiate a review to determine whether theinsurer's cancellation or refusal to renew complies with the requirements ofthis section and of § 38.2-2113, if sent by mail, or delivered electronicallyif a notice of refusal to renew. The policy shall remain in full force andeffect during the pendency of the review by the Commissioner except where thecancellation or refusal to renew is for reason of nonpayment of premium, inwhich case the policy shall terminate as of the date stated in the notice.Where the Commissioner finds from the review that the cancellation or refusalto renew has not complied with the requirements of this section or of §38.2-2113, if sent by mail or delivered electronically if a notice of refusalto renew, he shall immediately notify the insurer, the insured, and any otherperson to whom notice of cancellation or refusal to renew was required to begiven by the terms of the policy that the cancellation or refusal to renew isnot effective. Nothing in this section authorizes the Commissioner tosubstitute his judgment as to underwriting for that of the insurer.
E. Nothing in this section shall apply:
1. To any policy written to insure owner-occupied dwellings that has been ineffect for less than 90 days when the notice of termination is mailed ordelivered to the insured, unless it is a renewal policy;
2. If the insurer or its agent acting on behalf of the insurer has manifestedits willingness to renew by issuing or offering to issue a renewal policy,certificate or other evidence of renewal, or has otherwise manifested itswillingness to renew in writing to the insured. The written manifestationshall include the name of a proposed insurer, the expiration date of thepolicy, the type of insurance coverage and information regarding theestimated renewal premium;
3. If the named insured or his duly constituted attorney-in-fact has notifiedthe insurer or its agent orally, or in writing, if the insurer requires suchnotification to be in writing, that he wishes the policy to be canceled, orthat he does not wish the policy to be renewed, or if, prior to the date ofexpiration, he fails to accept the offer of the insurer to renew the policy;
4. To any contract or policy written through the Virginia Property InsuranceAssociation or any residual market facility established pursuant to Chapter27 (§ 38.2-2700 et seq.) of this title; or
5. If an affiliated insurer has manifested its willingness to providecoverage at a lower premium than would have been charged for the sameexposures on the expiring policy. The affiliated insurer shall manifest itswillingness to provide coverage by issuing a policy with the types and limitsof coverage at least equal to those contained in the expiring policy unlessthe named insured has requested a change in coverage or limits. When suchoffer is made by an affiliated insurer, an offer of renewal shall not berequired of the insurer of the expiring policy, and the policy issued by theaffiliated insurer shall be deemed to be a renewal policy.
F. Each insurer shall maintain, for at least one year, records ofcancellation and refusal to renew and copies of every notice or statementreferred to in subsection E of this section that it sends to any of itsinsureds.
G. There shall be no liability on the part of and no cause of action of anynature shall arise against the Commissioner or his subordinates; any insurer,its authorized representative, its agents, or its employees; or any firm,person or corporation furnishing to the insurer information as to reasons forcancellation or refusal to renew, for any statement made by any of them incomplying with this section or for providing information pertaining to thecancellation or refusal to renew.
H. Nothing in this section requires an insurer to renew a policy written toinsure owner-occupied dwellings, if the insured does not conform to theoccupational or membership requirements of an insurer who limits its writingsto an occupation or membership of an organization.
I. No insurer or agent shall refuse to renew a policy written to insure anowner-occupied dwelling, solely because of any one or more of the followingfactors:
1. Age;
2. Sex;
3. Residence;
4. Race;
5. Color;
6. Creed;
7. National origin;
8. Ancestry;
9. Marital status;
10. Lawful occupation, including the military service; however, nothing inthis subsection shall require any insurer to renew a policy for an insuredwhere the insured's occupation has changed so as to increase materially therisk;
11. Credit information contained in a "consumer report," as defined in thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., bearing on anatural person's creditworthiness, credit standing or credit capacity. Ifcredit information is used, in part, as the basis for the nonrenewal, suchcredit information shall be based on a consumer report procured within 120days from the effective date of the nonrenewal;
12. Any claim resulting primarily from natural causes;
13. One or more claims that were incurred more than 60 months immediatelyprior to the expiration of the current policy period; or
14. Any inquiry from an insured about his insurance coverage or policyprovisions. For purposes of this subdivision, "inquiry" means a written ororal communication by an insured seeking information regarding coverage orpolicy provisions that does not notify the insurer of a loss, incident oraccident, and that does not provide information indicating an increase in thehazard insured against. An insurer shall not report any inquiry as a claim toa loss history database maintained by a consumer reporting agency orinsurance support organization.
Nothing in this section prohibits any insurer from setting rates inaccordance with relevant actuarial data.
J. No insurer shall cancel or refuse to renew a policy written to insure anowner-occupied dwelling because an insured under the policy is a fosterparent and foster children reside at the insured dwelling.
(1972, c. 110, § 38.1-371.2; 1975, c. 350; 1978, c. 441; 1983, c. 371; 1986,c. 562; 1990, c. 293; 1995, c. 3; 1996, c. 237; 1998, c. 142; 2003, cc. 543,553; 2004, c. 300; 2005, c. 872; 2008, cc. 58, 221; 2009, cc. 215, 442.)
§ 38.2-2114. Grounds and procedure for termination of policy; contents ofnotice; review by Commissioner; exceptions; immunity from liability.
A. Notwithstanding the provisions of § 38.2-2105, no policy or contractwritten to insure owner-occupied dwellings shall be canceled by an insurerunless written notice is mailed or delivered to the named insured at theaddress stated in the policy, and cancellation is for one of the followingreasons:
1. Failure to pay the premium when due;
2. Conviction of a crime arising out of acts increasing the probability thata peril insured against will occur;
3. Discovery of fraud or material misrepresentation;
4. Willful or reckless acts or omissions increasing the probability that aperil insured against will occur as determined from a physical inspection ofthe insured premises;
5. Physical changes in the property which result in the property becominguninsurable as determined from a physical inspection of the insured premises;or
6. Foreclosure efforts by the secured party against the subject propertycovered by the policy that have resulted in the sale of the property by atrustee under a deed of trust as duly recorded in the land title records ofthe jurisdiction in which the property is located.
B. No policy or contract written to insure owner-occupied dwellings shall beterminated by an insurer by refusal to renew except at the expiration of thestated policy period or term and unless the insurer or its agent acting onbehalf of the insurer mails or delivers to the named insured, at the addressstated in the policy, or delivers electronically to the address provided bythe named insured, written notice of the insurer's refusal to renew thepolicy or contract.
C. A written notice of cancellation of or refusal to renew a policy orcontract written to insure owner-occupied dwellings shall:
1. State the date that the insurer proposes to terminate the policy orcontract, which shall be at least 30 days after mailing or delivering to thenamed insured the notice of cancellation or refusal to renew. However, whenthe policy is being terminated for the reason set forth in subdivision 1 ofsubsection A of this section, the date that the insurer proposes to terminatethe policy may be less than 30 days but at least 10 days from the date ofmailing or delivery;
2. State the specific reason for terminating the policy or contract andprovide for the notification required by the provisions of §§ 38.2-608 and38.2-609 and subsection B of § 38.2-610. However, those notificationrequirements shall not apply when the policy is being canceled or not renewedfor the reason set forth in subdivision 1 of subsection A of this section;
3. Advise the insured that within 10 days of receipt of the notice oftermination he may request in writing that the Commissioner review the actionof the insurer in terminating the policy or contract;
4. Advise the insured of his possible eligibility for fire insurance coveragethrough the Virginia Property Insurance Association; and
5. Be in a type size authorized by § 38.2-311.
D. Within 10 days of receipt of the notice of termination any insured or hisattorney shall be entitled to request in writing to the Commissioner that hereview the action of the insurer in terminating a policy or contract writtento insure owner-occupied dwellings. Upon receipt of the request, theCommissioner shall promptly initiate a review to determine whether theinsurer's cancellation or refusal to renew complies with the requirements ofthis section and of § 38.2-2113, if sent by mail, or delivered electronicallyif a notice of refusal to renew. The policy shall remain in full force andeffect during the pendency of the review by the Commissioner except where thecancellation or refusal to renew is for reason of nonpayment of premium, inwhich case the policy shall terminate as of the date stated in the notice.Where the Commissioner finds from the review that the cancellation or refusalto renew has not complied with the requirements of this section or of §38.2-2113, if sent by mail or delivered electronically if a notice of refusalto renew, he shall immediately notify the insurer, the insured, and any otherperson to whom notice of cancellation or refusal to renew was required to begiven by the terms of the policy that the cancellation or refusal to renew isnot effective. Nothing in this section authorizes the Commissioner tosubstitute his judgment as to underwriting for that of the insurer.
E. Nothing in this section shall apply:
1. To any policy written to insure owner-occupied dwellings that has been ineffect for less than 90 days when the notice of termination is mailed ordelivered to the insured, unless it is a renewal policy;
2. If the insurer or its agent acting on behalf of the insurer has manifestedits willingness to renew by issuing or offering to issue a renewal policy,certificate or other evidence of renewal, or has otherwise manifested itswillingness to renew in writing to the insured. The written manifestationshall include the name of a proposed insurer, the expiration date of thepolicy, the type of insurance coverage and information regarding theestimated renewal premium;
3. If the named insured or his duly constituted attorney-in-fact has notifiedthe insurer or its agent orally, or in writing, if the insurer requires suchnotification to be in writing, that he wishes the policy to be canceled, orthat he does not wish the policy to be renewed, or if, prior to the date ofexpiration, he fails to accept the offer of the insurer to renew the policy;
4. To any contract or policy written through the Virginia Property InsuranceAssociation or any residual market facility established pursuant to Chapter27 (§ 38.2-2700 et seq.) of this title; or
5. If an affiliated insurer has manifested its willingness to providecoverage at a lower premium than would have been charged for the sameexposures on the expiring policy. The affiliated insurer shall manifest itswillingness to provide coverage by issuing a policy with the types and limitsof coverage at least equal to those contained in the expiring policy unlessthe named insured has requested a change in coverage or limits. When suchoffer is made by an affiliated insurer, an offer of renewal shall not berequired of the insurer of the expiring policy, and the policy issued by theaffiliated insurer shall be deemed to be a renewal policy.
F. Each insurer shall maintain, for at least one year, records ofcancellation and refusal to renew and copies of every notice or statementreferred to in subsection E of this section that it sends to any of itsinsureds.
G. There shall be no liability on the part of and no cause of action of anynature shall arise against the Commissioner or his subordinates; any insurer,its authorized representative, its agents, or its employees; or any firm,person or corporation furnishing to the insurer information as to reasons forcancellation or refusal to renew, for any statement made by any of them incomplying with this section or for providing information pertaining to thecancellation or refusal to renew.
H. Nothing in this section requires an insurer to renew a policy written toinsure owner-occupied dwellings, if the insured does not conform to theoccupational or membership requirements of an insurer who limits its writingsto an occupation or membership of an organization.
I. No insurer or agent shall refuse to renew a policy written to insure anowner-occupied dwelling, solely because of any one or more of the followingfactors:
1. Age;
2. Sex;
3. Residence;
4. Race;
5. Color;
6. Creed;
7. National origin;
8. Ancestry;
9. Marital status;
10. Lawful occupation, including the military service; however, nothing inthis subsection shall require any insurer to renew a policy for an insuredwhere the insured's occupation has changed so as to increase materially therisk;
11. Credit information contained in a "consumer report," as defined in thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., bearing on anatural person's creditworthiness, credit standing or credit capacity. Ifcredit information is used, in part, as the basis for the nonrenewal, suchcredit information shall be based on a consumer report procured within 120days from the effective date of the nonrenewal;
12. Any claim resulting primarily from natural causes;
13. One or more claims that were incurred more than 60 months immediatelyprior to the expiration of the current policy period; or
14. Any inquiry from an insured about his insurance coverage or policyprovisions. For purposes of this subdivision, "inquiry" means a written ororal communication by an insured seeking information regarding coverage orpolicy provisions that does not notify the insurer of a loss, incident oraccident, and that does not provide information indicating an increase in thehazard insured against. An insurer shall not report any inquiry as a claim toa loss history database maintained by a consumer reporting agency orinsurance support organization.
Nothing in this section prohibits any insurer from setting rates inaccordance with relevant actuarial data.
J. No insurer shall cancel or refuse to renew a policy written to insure anowner-occupied dwelling because an insured under the policy is a fosterparent and foster children reside at the insured dwelling.
(1972, c. 110, § 38.1-371.2; 1975, c. 350; 1978, c. 441; 1983, c. 371; 1986,c. 562; 1990, c. 293; 1995, c. 3; 1996, c. 237; 1998, c. 142; 2003, cc. 543,553; 2004, c. 300; 2005, c. 872; 2008, cc. 58, 221; 2009, cc. 215, 442.)
§ 38.2-2114. Grounds and procedure for termination of policy; contents ofnotice; review by Commissioner; exceptions; immunity from liability.
A. Notwithstanding the provisions of § 38.2-2105, no policy or contractwritten to insure owner-occupied dwellings shall be canceled by an insurerunless written notice is mailed or delivered to the named insured at theaddress stated in the policy, and cancellation is for one of the followingreasons:
1. Failure to pay the premium when due;
2. Conviction of a crime arising out of acts increasing the probability thata peril insured against will occur;
3. Discovery of fraud or material misrepresentation;
4. Willful or reckless acts or omissions increasing the probability that aperil insured against will occur as determined from a physical inspection ofthe insured premises;
5. Physical changes in the property which result in the property becominguninsurable as determined from a physical inspection of the insured premises;or
6. Foreclosure efforts by the secured party against the subject propertycovered by the policy that have resulted in the sale of the property by atrustee under a deed of trust as duly recorded in the land title records ofthe jurisdiction in which the property is located.
B. No policy or contract written to insure owner-occupied dwellings shall beterminated by an insurer by refusal to renew except at the expiration of thestated policy period or term and unless the insurer or its agent acting onbehalf of the insurer mails or delivers to the named insured, at the addressstated in the policy, or delivers electronically to the address provided bythe named insured, written notice of the insurer's refusal to renew thepolicy or contract.
C. A written notice of cancellation of or refusal to renew a policy orcontract written to insure owner-occupied dwellings shall:
1. State the date that the insurer proposes to terminate the policy orcontract, which shall be at least 30 days after mailing or delivering to thenamed insured the notice of cancellation or refusal to renew. However, whenthe policy is being terminated for the reason set forth in subdivision 1 ofsubsection A of this section, the date that the insurer proposes to terminatethe policy may be less than 30 days but at least 10 days from the date ofmailing or delivery;
2. State the specific reason for terminating the policy or contract andprovide for the notification required by the provisions of §§ 38.2-608 and38.2-609 and subsection B of § 38.2-610. However, those notificationrequirements shall not apply when the policy is being canceled or not renewedfor the reason set forth in subdivision 1 of subsection A of this section;
3. Advise the insured that within 10 days of receipt of the notice oftermination he may request in writing that the Commissioner review the actionof the insurer in terminating the policy or contract;
4. Advise the insured of his possible eligibility for fire insurance coveragethrough the Virginia Property Insurance Association; and
5. Be in a type size authorized by § 38.2-311.
D. Within 10 days of receipt of the notice of termination any insured or hisattorney shall be entitled to request in writing to the Commissioner that hereview the action of the insurer in terminating a policy or contract writtento insure owner-occupied dwellings. Upon receipt of the request, theCommissioner shall promptly initiate a review to determine whether theinsurer's cancellation or refusal to renew complies with the requirements ofthis section and of § 38.2-2113, if sent by mail, or delivered electronicallyif a notice of refusal to renew. The policy shall remain in full force andeffect during the pendency of the review by the Commissioner except where thecancellation or refusal to renew is for reason of nonpayment of premium, inwhich case the policy shall terminate as of the date stated in the notice.Where the Commissioner finds from the review that the cancellation or refusalto renew has not complied with the requirements of this section or of §38.2-2113, if sent by mail or delivered electronically if a notice of refusalto renew, he shall immediately notify the insurer, the insured, and any otherperson to whom notice of cancellation or refusal to renew was required to begiven by the terms of the policy that the cancellation or refusal to renew isnot effective. Nothing in this section authorizes the Commissioner tosubstitute his judgment as to underwriting for that of the insurer.
E. Nothing in this section shall apply:
1. To any policy written to insure owner-occupied dwellings that has been ineffect for less than 90 days when the notice of termination is mailed ordelivered to the insured, unless it is a renewal policy;
2. If the insurer or its agent acting on behalf of the insurer has manifestedits willingness to renew by issuing or offering to issue a renewal policy,certificate or other evidence of renewal, or has otherwise manifested itswillingness to renew in writing to the insured. The written manifestationshall include the name of a proposed insurer, the expiration date of thepolicy, the type of insurance coverage and information regarding theestimated renewal premium;
3. If the named insured or his duly constituted attorney-in-fact has notifiedthe insurer or its agent orally, or in writing, if the insurer requires suchnotification to be in writing, that he wishes the policy to be canceled, orthat he does not wish the policy to be renewed, or if, prior to the date ofexpiration, he fails to accept the offer of the insurer to renew the policy;
4. To any contract or policy written through the Virginia Property InsuranceAssociation or any residual market facility established pursuant to Chapter27 (§ 38.2-2700 et seq.) of this title; or
5. If an affiliated insurer has manifested its willingness to providecoverage at a lower premium than would have been charged for the sameexposures on the expiring policy. The affiliated insurer shall manifest itswillingness to provide coverage by issuing a policy with the types and limitsof coverage at least equal to those contained in the expiring policy unlessthe named insured has requested a change in coverage or limits. When suchoffer is made by an affiliated insurer, an offer of renewal shall not berequired of the insurer of the expiring policy, and the policy issued by theaffiliated insurer shall be deemed to be a renewal policy.
F. Each insurer shall maintain, for at least one year, records ofcancellation and refusal to renew and copies of every notice or statementreferred to in subsection E of this section that it sends to any of itsinsureds.
G. There shall be no liability on the part of and no cause of action of anynature shall arise against the Commissioner or his subordinates; any insurer,its authorized representative, its agents, or its employees; or any firm,person or corporation furnishing to the insurer information as to reasons forcancellation or refusal to renew, for any statement made by any of them incomplying with this section or for providing information pertaining to thecancellation or refusal to renew.
H. Nothing in this section requires an insurer to renew a policy written toinsure owner-occupied dwellings, if the insured does not conform to theoccupational or membership requirements of an insurer who limits its writingsto an occupation or membership of an organization.
I. No insurer or agent shall refuse to renew a policy written to insure anowner-occupied dwelling, solely because of any one or more of the followingfactors:
1. Age;
2. Sex;
3. Residence;
4. Race;
5. Color;
6. Creed;
7. National origin;
8. Ancestry;
9. Marital status;
10. Lawful occupation, including the military service; however, nothing inthis subsection shall require any insurer to renew a policy for an insuredwhere the insured's occupation has changed so as to increase materially therisk;
11. Credit information contained in a "consumer report," as defined in thefederal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., bearing on anatural person's creditworthiness, credit standing or credit capacity. Ifcredit information is used, in part, as the basis for the nonrenewal, suchcredit information shall be based on a consumer report procured within 120days from the effective date of the nonrenewal;
12. Any claim resulting primarily from natural causes;
13. One or more claims that were incurred more than 60 months immediatelyprior to the expiration of the current policy period; or
14. Any inquiry from an insured about his insurance coverage or policyprovisions. For purposes of this subdivision, "inquiry" means a written ororal communication by an insured seeking information regarding coverage orpolicy provisions that does not notify the insurer of a loss, incident oraccident, and that does not provide information indicating an increase in thehazard insured against. An insurer shall not report any inquiry as a claim toa loss history database maintained by a consumer reporting agency orinsurance support organization.
Nothing in this section prohibits any insurer from setting rates inaccordance with relevant actuarial data.
J. No insurer shall cancel or refuse to renew a policy written to insure anowner-occupied dwelling because an insured under the policy is a fosterparent and foster children reside at the insured dwelling.
(1972, c. 110, § 38.1-371.2; 1975, c. 350; 1978, c. 441; 1983, c. 371; 1986,c. 562; 1990, c. 293; 1995, c. 3; 1996, c. 237; 1998, c. 142; 2003, cc. 543,553; 2004, c. 300; 2005, c. 872; 2008, cc. 58, 221; 2009, cc. 215, 442.)
