§ 38.2-2212. Grounds and procedure for cancellation of or refusal to renewmotor vehicle insurance policies; review by Commissioner.
A. The following definitions shall apply to this section:
"Cancellation" or "to cancel" means a termination of a policy during thepolicy period.
"Insurer" means any insurance company, association, or exchange licensed totransact motor vehicle insurance in this Commonwealth.
"Policy of motor vehicle insurance" or "policy" means a policy orcontract for bodily injury or property damage liability insurance issued ordelivered in this Commonwealth covering liability arising from the ownership,maintenance, or use of any motor vehicle, insuring as the named insured oneindividual or husband and wife who are residents of the same household, andunder which the insured vehicle designated in the policy is either:
a. A motor vehicle of a private passenger, station wagon, or motorcycle typethat is not used commercially, rented to others, or used as a public orlivery conveyance where the term "public or livery conveyance" does notinclude car pools, or
b. Any other four-wheel motor vehicle which is not used in the occupation,profession, or business, other than farming, of the insured, or as a publicor livery conveyance, or rented to others. The term "policy of motor vehicleinsurance" or "policy" does not include (i) any policy issued through theVirginia Automobile Insurance Plan, (ii) any policy covering the operation ofa garage, sales agency, repair shop, service station, or public parkingplace, (iii) any policy providing insurance only on an excess basis, or (iv)any other contract providing insurance to the named insured even though thecontract may incidentally provide insurance on motor vehicles.
"Renewal" or "to renew" means (i) the issuance and delivery by an insurerof a policy superseding at the end of the policy period a policy previouslyissued and delivered by the same insurer, providing types and limits ofcoverage at least equal to those contained in the policy being superseded, or(ii) the issuance and delivery of a certificate or notice extending the termof a policy beyond its policy period or term with types and limits ofcoverage at least equal to those contained in the policy. Each renewal shallconform with the requirements of the manual rules and rating programcurrently filed by the insurer with the Commission. Except as provided insubsection K of this section, any policy with a policy period or term of lessthan 12 months or any policy with no fixed expiration date shall for thepurpose of this section be considered as if written for successive policyperiods or terms of six months from the original effective date.
B. This section shall apply only to that portion of a policy of motor vehicleinsurance providing the coverage required by §§ 38.2-2204, 38.2-2205 and38.2-2206.
C. 1. No insurer shall refuse to renew a motor vehicle insurance policysolely because of any one or more of the following factors:
a. Age;
b. Sex;
c. Residence;
d. Race;
e. Color;
f. Creed;
g. National origin;
h. Ancestry;
i. Marital status;
j. Lawful occupation, including the military service;
k. Lack of driving experience, or number of years driving experience;
l. Lack of supporting business or lack of the potential for acquiring suchbusiness;
m. One or more accidents or violations that occurred more than 48 monthsimmediately preceding the upcoming anniversary date;
n. One or more claims submitted under the uninsured motorists coverage of thepolicy where the uninsured motorist is known or there is physical evidence ofcontact;
o. A single claim by a single insured submitted under the medical expensecoverage due to an accident for which the insured was neither wholly norpartially at fault;
p. One or more claims submitted under the comprehensive or towing coverages.However, nothing in this section shall prohibit an insurer from modifying orrefusing to renew the comprehensive or towing coverages at the time ofrenewal of the policy on the basis of one or more claims submitted by aninsured under those coverages, provided that the insurer shall mail ordeliver to the insured at the address shown in the policy, or deliverelectronically to the address provided by the named insured, written noticeof any such change in coverage at least 45 days prior to the renewal;
q. Two or fewer motor vehicle accidents within a three-year period unless theaccident was caused either wholly or partially by the named insured, aresident of the same household, or other customary operator;
r. 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. The provisions of thissubdivision shall apply only to insurance purchased primarily for personal,family, or household purposes; or
s. The refusal of a motor vehicle owner as defined in § 46.2-1088.6 toprovide access to recorded data from a recording device as defined in §46.2-1088.6.
2. Nothing in this section shall require any insurer to renew a policy for aninsured where the insured's occupation has changed so as to materiallyincrease the risk. Nothing contained in subdivisions C 1 n, 1 o and 1 p ofthis subsection shall prohibit an insurer from refusing to renew a policywhere a claim is false or fraudulent. Nothing in this section prohibits anyinsurer from setting rates in accordance with relevant actuarial data.
D. No insurer shall cancel a policy except for one or more of the followingreasons:
1. The named insured or any other operator who either resides in the samehousehold or customarily operates a motor vehicle insured under the policyhas had his driver's license suspended or revoked during the policy periodor, if the policy is a renewal, during its policy period or the 90 daysimmediately preceding the last effective date.
2. The named insured fails to pay the premium for the policy or anyinstallment of the premium, whether payable to the insurer or its agenteither directly or indirectly under any premium finance plan or extension ofcredit.
3. The named insured or his duly constituted attorney-in-fact has notifiedthe insurer of a change in the insured's legal residence to a state otherthan Virginia and the insured vehicle will be principally garaged in the newstate of legal residence.
E. No cancellation or refusal to renew by an insurer of a policy of motorvehicle insurance shall be effective unless the insurer delivers or mails tothe named insured at the address shown in the policy a written notice of thecancellation, or if the notice is of a refusal to renew such a policy, theinsurer delivers electronically to the address provided by the named insuredthe notice of refusal to renew. The notice shall:
1. Be in a type size authorized under § 38.2-311.
2. State the effective date of the cancellation or refusal to renew. Theeffective date of cancellation or refusal to renew shall be at least 45 daysafter mailing or delivering to the insured the notice of cancellation ornotice of refusal to renew. However, when the policy is being canceled or notrenewed for the reason set forth in subdivision 2 of subsection D of thissection the effective date may be less than 45 days but at least 15 days fromthe date of mailing or delivery.
3. State the specific reason of the insurer for cancellation or refusal torenew and provide for the notification required by §§ 38.2-608, 38.2-609, andsubsection B of § 38.2-610. However, those notification requirements shallnot apply when the policy is being canceled or not renewed for the reason setforth in subdivision 2 of subsection D of this section.
4. Inform the insured of his right to request in writing within 15 days ofthe receipt of the notice that the Commissioner review the action of theinsurer.
The notice of cancellation or refusal to renew shall contain the followingstatement to inform the insured of such right:
IMPORTANT NOTICE
Within 15 days of receiving this notice, you or your attorney may request inwriting that the Commissioner of Insurance review this action to determinewhether the insurer has complied with Virginia laws in canceling ornonrenewing your policy. If this insurer has failed to comply with thecancellation or nonrenewal laws, the Commissioner may require that yourpolicy be reinstated. However, the Commissioner is prohibited from makingunderwriting judgments. If this insurer has complied with the cancellation ornonrenewal laws, the Commissioner does not have the authority to overturnthis action.
5. Inform the insured of the possible availability of other insurance whichmay be obtained through his agent, through another insurer, or through theVirginia Automobile Insurance Plan.
6. If sent by mail, or delivered electronically if it is a notice of refusalto renew, comply with the provisions of § 38.2-2208.
Nothing in this subsection prohibits any insurer or agent from including inthe notice of cancellation or refusal to renew, any additional disclosurestatements required by state or federal laws, or any additional informationrelating to the availability of other insurance.
F. Nothing in this section shall apply:
1. 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 manifested its willingnessto renew in writing to the insured. The written manifestation shall includethe name of a proposed insurer, the expiration date of the policy, the typeof insurance coverage, and information regarding the estimated renewalpremium. The insurer shall retain a copy of each written manifestation for aperiod of at least one year from the expiration date of any policy that isnot renewed;
2. If the named insured, or his duly constituted attorney-in-fact, hasnotified the insurer or its agent orally, or in writing, if the insurerrequires such notification to be in writing, that he wishes the policy to becanceled or that he does not wish the policy to be renewed, or if prior tothe date of expiration he fails to accept the offer of the insurer to renewthe policy;
3. To any motor vehicle insurance policy which has been in effect less than60 days when the termination notice is mailed or delivered to the insured,unless it is a renewal policy; or
4. 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.
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 representatives, its agents, or its employees; or any personfurnishing to the insurer information as to reasons for cancellation orrefusal to renew, for any statement made by any of them in complying withthis section or for providing information pertaining to the cancellation orrefusal to renew. For the purposes of this section, no insurer shall berequired to furnish a notice of cancellation or refusal to renew to anyoneother than the named insured, any person designated by the named insured, orany other person to whom such notice is required to be given by the terms ofthe policy and the Commissioner.
H. Within 15 days of receipt of the notice of cancellation or refusal torenew, any insured or his attorney shall be entitled to request in writing tothe Commissioner that he review the action of the insurer in canceling orrefusing to renew the policy of the insured. Upon receipt of the request, theCommissioner shall promptly begin a review to determine whether the insurer'scancellation or refusal to renew complies with the requirements of thissection and of § 38.2-2208 if the notice was sent by mail or deliveredelectronically if it is a notice of refusal to renew. The policy shall remainin full force and effect during the pendency of the review by theCommissioner except where the cancellation or refusal to renew is for thereason set forth in subdivision 2 of subsection D of this section, in whichcase the policy shall terminate as of the effective date stated in thenotice. Where the Commissioner finds from the review that the cancellation orrefusal to renew has not complied with the requirements of this section or of§ 38.2-2208, he shall immediately notify the insurer, the insured and anyother person to whom such notice was required to be given by the terms of thepolicy that the cancellation or refusal to renew is not effective. Nothing inthis section authorizes the Commissioner to substitute his judgment as tounderwriting for that of the insurer. Where the Commissioner finds in favorof the insured, the Commission in its discretion may award the insuredreasonable attorneys' fees.
I. Each insurer shall maintain for at least one year, records of cancellationand refusal to renew and copies of every notice or statement referred to insubsection E of this section that it sends to any of its insureds.
J. The provisions of this section shall not apply to any insurer that limitsthe issuance of policies of motor vehicle liability insurance to one class orgroup of persons engaged in any one particular profession, trade, occupation,or business. Nothing in this section requires an insurer to renew a policy ofmotor vehicle insurance if the insured does not conform to the occupationalor membership requirements of an insurer who limits its writings to anoccupation or membership of an organization. No insurer is required to renewa policy if the insured becomes a nonresident of Virginia.
K. Notwithstanding any other provision of this section, a motor vehicleinsurance policy with a policy period or term of five months or less mayexpire at its expiration date when the insurer has manifested in writing itswillingness to renew the policy for at least 30 days and has mailed ordelivered the written manifestation to the insured at least 15 days beforethe expiration date of the policy. The written manifestation shall includethe name of the proposed insurer, the expiration date of the policy, the typeof insurance coverage, and the estimated renewal premium. The insurer shallretain a copy of the written manifestation for at least one year from theexpiration date of any policy that is not renewed.
(1970, c. 564, § 38.1-381.5; 1972, c. 273; 1975, cc. 63, 319; 1978, c. 441;1982, c. 482; 1983, cc. 125, 371; 1984, c. 340; 1986, c. 562; 1988, c. 655;1990, c. 960; 1991, c. 116; 1995, c. 3; 1996, cc. 206, 239; 1998, cc. 141,142; 2003, cc. 543, 553; 2006, cc. 851, 889; 2008, cc. 58, 221; 2009, c. 215.)
§ 38.2-2212. Grounds and procedure for cancellation of or refusal to renewmotor vehicle insurance policies; review by Commissioner.
A. The following definitions shall apply to this section:
"Cancellation" or "to cancel" means a termination of a policy during thepolicy period.
"Insurer" means any insurance company, association, or exchange licensed totransact motor vehicle insurance in this Commonwealth.
"Policy of motor vehicle insurance" or "policy" means a policy orcontract for bodily injury or property damage liability insurance issued ordelivered in this Commonwealth covering liability arising from the ownership,maintenance, or use of any motor vehicle, insuring as the named insured oneindividual or husband and wife who are residents of the same household, andunder which the insured vehicle designated in the policy is either:
a. A motor vehicle of a private passenger, station wagon, or motorcycle typethat is not used commercially, rented to others, or used as a public orlivery conveyance where the term "public or livery conveyance" does notinclude car pools, or
b. Any other four-wheel motor vehicle which is not used in the occupation,profession, or business, other than farming, of the insured, or as a publicor livery conveyance, or rented to others. The term "policy of motor vehicleinsurance" or "policy" does not include (i) any policy issued through theVirginia Automobile Insurance Plan, (ii) any policy covering the operation ofa garage, sales agency, repair shop, service station, or public parkingplace, (iii) any policy providing insurance only on an excess basis, or (iv)any other contract providing insurance to the named insured even though thecontract may incidentally provide insurance on motor vehicles.
"Renewal" or "to renew" means (i) the issuance and delivery by an insurerof a policy superseding at the end of the policy period a policy previouslyissued and delivered by the same insurer, providing types and limits ofcoverage at least equal to those contained in the policy being superseded, or(ii) the issuance and delivery of a certificate or notice extending the termof a policy beyond its policy period or term with types and limits ofcoverage at least equal to those contained in the policy. Each renewal shallconform with the requirements of the manual rules and rating programcurrently filed by the insurer with the Commission. Except as provided insubsection K of this section, any policy with a policy period or term of lessthan 12 months or any policy with no fixed expiration date shall for thepurpose of this section be considered as if written for successive policyperiods or terms of six months from the original effective date.
B. This section shall apply only to that portion of a policy of motor vehicleinsurance providing the coverage required by §§ 38.2-2204, 38.2-2205 and38.2-2206.
C. 1. No insurer shall refuse to renew a motor vehicle insurance policysolely because of any one or more of the following factors:
a. Age;
b. Sex;
c. Residence;
d. Race;
e. Color;
f. Creed;
g. National origin;
h. Ancestry;
i. Marital status;
j. Lawful occupation, including the military service;
k. Lack of driving experience, or number of years driving experience;
l. Lack of supporting business or lack of the potential for acquiring suchbusiness;
m. One or more accidents or violations that occurred more than 48 monthsimmediately preceding the upcoming anniversary date;
n. One or more claims submitted under the uninsured motorists coverage of thepolicy where the uninsured motorist is known or there is physical evidence ofcontact;
o. A single claim by a single insured submitted under the medical expensecoverage due to an accident for which the insured was neither wholly norpartially at fault;
p. One or more claims submitted under the comprehensive or towing coverages.However, nothing in this section shall prohibit an insurer from modifying orrefusing to renew the comprehensive or towing coverages at the time ofrenewal of the policy on the basis of one or more claims submitted by aninsured under those coverages, provided that the insurer shall mail ordeliver to the insured at the address shown in the policy, or deliverelectronically to the address provided by the named insured, written noticeof any such change in coverage at least 45 days prior to the renewal;
q. Two or fewer motor vehicle accidents within a three-year period unless theaccident was caused either wholly or partially by the named insured, aresident of the same household, or other customary operator;
r. 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. The provisions of thissubdivision shall apply only to insurance purchased primarily for personal,family, or household purposes; or
s. The refusal of a motor vehicle owner as defined in § 46.2-1088.6 toprovide access to recorded data from a recording device as defined in §46.2-1088.6.
2. Nothing in this section shall require any insurer to renew a policy for aninsured where the insured's occupation has changed so as to materiallyincrease the risk. Nothing contained in subdivisions C 1 n, 1 o and 1 p ofthis subsection shall prohibit an insurer from refusing to renew a policywhere a claim is false or fraudulent. Nothing in this section prohibits anyinsurer from setting rates in accordance with relevant actuarial data.
D. No insurer shall cancel a policy except for one or more of the followingreasons:
1. The named insured or any other operator who either resides in the samehousehold or customarily operates a motor vehicle insured under the policyhas had his driver's license suspended or revoked during the policy periodor, if the policy is a renewal, during its policy period or the 90 daysimmediately preceding the last effective date.
2. The named insured fails to pay the premium for the policy or anyinstallment of the premium, whether payable to the insurer or its agenteither directly or indirectly under any premium finance plan or extension ofcredit.
3. The named insured or his duly constituted attorney-in-fact has notifiedthe insurer of a change in the insured's legal residence to a state otherthan Virginia and the insured vehicle will be principally garaged in the newstate of legal residence.
E. No cancellation or refusal to renew by an insurer of a policy of motorvehicle insurance shall be effective unless the insurer delivers or mails tothe named insured at the address shown in the policy a written notice of thecancellation, or if the notice is of a refusal to renew such a policy, theinsurer delivers electronically to the address provided by the named insuredthe notice of refusal to renew. The notice shall:
1. Be in a type size authorized under § 38.2-311.
2. State the effective date of the cancellation or refusal to renew. Theeffective date of cancellation or refusal to renew shall be at least 45 daysafter mailing or delivering to the insured the notice of cancellation ornotice of refusal to renew. However, when the policy is being canceled or notrenewed for the reason set forth in subdivision 2 of subsection D of thissection the effective date may be less than 45 days but at least 15 days fromthe date of mailing or delivery.
3. State the specific reason of the insurer for cancellation or refusal torenew and provide for the notification required by §§ 38.2-608, 38.2-609, andsubsection B of § 38.2-610. However, those notification requirements shallnot apply when the policy is being canceled or not renewed for the reason setforth in subdivision 2 of subsection D of this section.
4. Inform the insured of his right to request in writing within 15 days ofthe receipt of the notice that the Commissioner review the action of theinsurer.
The notice of cancellation or refusal to renew shall contain the followingstatement to inform the insured of such right:
IMPORTANT NOTICE
Within 15 days of receiving this notice, you or your attorney may request inwriting that the Commissioner of Insurance review this action to determinewhether the insurer has complied with Virginia laws in canceling ornonrenewing your policy. If this insurer has failed to comply with thecancellation or nonrenewal laws, the Commissioner may require that yourpolicy be reinstated. However, the Commissioner is prohibited from makingunderwriting judgments. If this insurer has complied with the cancellation ornonrenewal laws, the Commissioner does not have the authority to overturnthis action.
5. Inform the insured of the possible availability of other insurance whichmay be obtained through his agent, through another insurer, or through theVirginia Automobile Insurance Plan.
6. If sent by mail, or delivered electronically if it is a notice of refusalto renew, comply with the provisions of § 38.2-2208.
Nothing in this subsection prohibits any insurer or agent from including inthe notice of cancellation or refusal to renew, any additional disclosurestatements required by state or federal laws, or any additional informationrelating to the availability of other insurance.
F. Nothing in this section shall apply:
1. 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 manifested its willingnessto renew in writing to the insured. The written manifestation shall includethe name of a proposed insurer, the expiration date of the policy, the typeof insurance coverage, and information regarding the estimated renewalpremium. The insurer shall retain a copy of each written manifestation for aperiod of at least one year from the expiration date of any policy that isnot renewed;
2. If the named insured, or his duly constituted attorney-in-fact, hasnotified the insurer or its agent orally, or in writing, if the insurerrequires such notification to be in writing, that he wishes the policy to becanceled or that he does not wish the policy to be renewed, or if prior tothe date of expiration he fails to accept the offer of the insurer to renewthe policy;
3. To any motor vehicle insurance policy which has been in effect less than60 days when the termination notice is mailed or delivered to the insured,unless it is a renewal policy; or
4. 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.
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 representatives, its agents, or its employees; or any personfurnishing to the insurer information as to reasons for cancellation orrefusal to renew, for any statement made by any of them in complying withthis section or for providing information pertaining to the cancellation orrefusal to renew. For the purposes of this section, no insurer shall berequired to furnish a notice of cancellation or refusal to renew to anyoneother than the named insured, any person designated by the named insured, orany other person to whom such notice is required to be given by the terms ofthe policy and the Commissioner.
H. Within 15 days of receipt of the notice of cancellation or refusal torenew, any insured or his attorney shall be entitled to request in writing tothe Commissioner that he review the action of the insurer in canceling orrefusing to renew the policy of the insured. Upon receipt of the request, theCommissioner shall promptly begin a review to determine whether the insurer'scancellation or refusal to renew complies with the requirements of thissection and of § 38.2-2208 if the notice was sent by mail or deliveredelectronically if it is a notice of refusal to renew. The policy shall remainin full force and effect during the pendency of the review by theCommissioner except where the cancellation or refusal to renew is for thereason set forth in subdivision 2 of subsection D of this section, in whichcase the policy shall terminate as of the effective date stated in thenotice. Where the Commissioner finds from the review that the cancellation orrefusal to renew has not complied with the requirements of this section or of§ 38.2-2208, he shall immediately notify the insurer, the insured and anyother person to whom such notice was required to be given by the terms of thepolicy that the cancellation or refusal to renew is not effective. Nothing inthis section authorizes the Commissioner to substitute his judgment as tounderwriting for that of the insurer. Where the Commissioner finds in favorof the insured, the Commission in its discretion may award the insuredreasonable attorneys' fees.
I. Each insurer shall maintain for at least one year, records of cancellationand refusal to renew and copies of every notice or statement referred to insubsection E of this section that it sends to any of its insureds.
J. The provisions of this section shall not apply to any insurer that limitsthe issuance of policies of motor vehicle liability insurance to one class orgroup of persons engaged in any one particular profession, trade, occupation,or business. Nothing in this section requires an insurer to renew a policy ofmotor vehicle insurance if the insured does not conform to the occupationalor membership requirements of an insurer who limits its writings to anoccupation or membership of an organization. No insurer is required to renewa policy if the insured becomes a nonresident of Virginia.
K. Notwithstanding any other provision of this section, a motor vehicleinsurance policy with a policy period or term of five months or less mayexpire at its expiration date when the insurer has manifested in writing itswillingness to renew the policy for at least 30 days and has mailed ordelivered the written manifestation to the insured at least 15 days beforethe expiration date of the policy. The written manifestation shall includethe name of the proposed insurer, the expiration date of the policy, the typeof insurance coverage, and the estimated renewal premium. The insurer shallretain a copy of the written manifestation for at least one year from theexpiration date of any policy that is not renewed.
(1970, c. 564, § 38.1-381.5; 1972, c. 273; 1975, cc. 63, 319; 1978, c. 441;1982, c. 482; 1983, cc. 125, 371; 1984, c. 340; 1986, c. 562; 1988, c. 655;1990, c. 960; 1991, c. 116; 1995, c. 3; 1996, cc. 206, 239; 1998, cc. 141,142; 2003, cc. 543, 553; 2006, cc. 851, 889; 2008, cc. 58, 221; 2009, c. 215.)
§ 38.2-2212. Grounds and procedure for cancellation of or refusal to renewmotor vehicle insurance policies; review by Commissioner.
A. The following definitions shall apply to this section:
"Cancellation" or "to cancel" means a termination of a policy during thepolicy period.
"Insurer" means any insurance company, association, or exchange licensed totransact motor vehicle insurance in this Commonwealth.
"Policy of motor vehicle insurance" or "policy" means a policy orcontract for bodily injury or property damage liability insurance issued ordelivered in this Commonwealth covering liability arising from the ownership,maintenance, or use of any motor vehicle, insuring as the named insured oneindividual or husband and wife who are residents of the same household, andunder which the insured vehicle designated in the policy is either:
a. A motor vehicle of a private passenger, station wagon, or motorcycle typethat is not used commercially, rented to others, or used as a public orlivery conveyance where the term "public or livery conveyance" does notinclude car pools, or
b. Any other four-wheel motor vehicle which is not used in the occupation,profession, or business, other than farming, of the insured, or as a publicor livery conveyance, or rented to others. The term "policy of motor vehicleinsurance" or "policy" does not include (i) any policy issued through theVirginia Automobile Insurance Plan, (ii) any policy covering the operation ofa garage, sales agency, repair shop, service station, or public parkingplace, (iii) any policy providing insurance only on an excess basis, or (iv)any other contract providing insurance to the named insured even though thecontract may incidentally provide insurance on motor vehicles.
"Renewal" or "to renew" means (i) the issuance and delivery by an insurerof a policy superseding at the end of the policy period a policy previouslyissued and delivered by the same insurer, providing types and limits ofcoverage at least equal to those contained in the policy being superseded, or(ii) the issuance and delivery of a certificate or notice extending the termof a policy beyond its policy period or term with types and limits ofcoverage at least equal to those contained in the policy. Each renewal shallconform with the requirements of the manual rules and rating programcurrently filed by the insurer with the Commission. Except as provided insubsection K of this section, any policy with a policy period or term of lessthan 12 months or any policy with no fixed expiration date shall for thepurpose of this section be considered as if written for successive policyperiods or terms of six months from the original effective date.
B. This section shall apply only to that portion of a policy of motor vehicleinsurance providing the coverage required by §§ 38.2-2204, 38.2-2205 and38.2-2206.
C. 1. No insurer shall refuse to renew a motor vehicle insurance policysolely because of any one or more of the following factors:
a. Age;
b. Sex;
c. Residence;
d. Race;
e. Color;
f. Creed;
g. National origin;
h. Ancestry;
i. Marital status;
j. Lawful occupation, including the military service;
k. Lack of driving experience, or number of years driving experience;
l. Lack of supporting business or lack of the potential for acquiring suchbusiness;
m. One or more accidents or violations that occurred more than 48 monthsimmediately preceding the upcoming anniversary date;
n. One or more claims submitted under the uninsured motorists coverage of thepolicy where the uninsured motorist is known or there is physical evidence ofcontact;
o. A single claim by a single insured submitted under the medical expensecoverage due to an accident for which the insured was neither wholly norpartially at fault;
p. One or more claims submitted under the comprehensive or towing coverages.However, nothing in this section shall prohibit an insurer from modifying orrefusing to renew the comprehensive or towing coverages at the time ofrenewal of the policy on the basis of one or more claims submitted by aninsured under those coverages, provided that the insurer shall mail ordeliver to the insured at the address shown in the policy, or deliverelectronically to the address provided by the named insured, written noticeof any such change in coverage at least 45 days prior to the renewal;
q. Two or fewer motor vehicle accidents within a three-year period unless theaccident was caused either wholly or partially by the named insured, aresident of the same household, or other customary operator;
r. 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. The provisions of thissubdivision shall apply only to insurance purchased primarily for personal,family, or household purposes; or
s. The refusal of a motor vehicle owner as defined in § 46.2-1088.6 toprovide access to recorded data from a recording device as defined in §46.2-1088.6.
2. Nothing in this section shall require any insurer to renew a policy for aninsured where the insured's occupation has changed so as to materiallyincrease the risk. Nothing contained in subdivisions C 1 n, 1 o and 1 p ofthis subsection shall prohibit an insurer from refusing to renew a policywhere a claim is false or fraudulent. Nothing in this section prohibits anyinsurer from setting rates in accordance with relevant actuarial data.
D. No insurer shall cancel a policy except for one or more of the followingreasons:
1. The named insured or any other operator who either resides in the samehousehold or customarily operates a motor vehicle insured under the policyhas had his driver's license suspended or revoked during the policy periodor, if the policy is a renewal, during its policy period or the 90 daysimmediately preceding the last effective date.
2. The named insured fails to pay the premium for the policy or anyinstallment of the premium, whether payable to the insurer or its agenteither directly or indirectly under any premium finance plan or extension ofcredit.
3. The named insured or his duly constituted attorney-in-fact has notifiedthe insurer of a change in the insured's legal residence to a state otherthan Virginia and the insured vehicle will be principally garaged in the newstate of legal residence.
E. No cancellation or refusal to renew by an insurer of a policy of motorvehicle insurance shall be effective unless the insurer delivers or mails tothe named insured at the address shown in the policy a written notice of thecancellation, or if the notice is of a refusal to renew such a policy, theinsurer delivers electronically to the address provided by the named insuredthe notice of refusal to renew. The notice shall:
1. Be in a type size authorized under § 38.2-311.
2. State the effective date of the cancellation or refusal to renew. Theeffective date of cancellation or refusal to renew shall be at least 45 daysafter mailing or delivering to the insured the notice of cancellation ornotice of refusal to renew. However, when the policy is being canceled or notrenewed for the reason set forth in subdivision 2 of subsection D of thissection the effective date may be less than 45 days but at least 15 days fromthe date of mailing or delivery.
3. State the specific reason of the insurer for cancellation or refusal torenew and provide for the notification required by §§ 38.2-608, 38.2-609, andsubsection B of § 38.2-610. However, those notification requirements shallnot apply when the policy is being canceled or not renewed for the reason setforth in subdivision 2 of subsection D of this section.
4. Inform the insured of his right to request in writing within 15 days ofthe receipt of the notice that the Commissioner review the action of theinsurer.
The notice of cancellation or refusal to renew shall contain the followingstatement to inform the insured of such right:
IMPORTANT NOTICE
Within 15 days of receiving this notice, you or your attorney may request inwriting that the Commissioner of Insurance review this action to determinewhether the insurer has complied with Virginia laws in canceling ornonrenewing your policy. If this insurer has failed to comply with thecancellation or nonrenewal laws, the Commissioner may require that yourpolicy be reinstated. However, the Commissioner is prohibited from makingunderwriting judgments. If this insurer has complied with the cancellation ornonrenewal laws, the Commissioner does not have the authority to overturnthis action.
5. Inform the insured of the possible availability of other insurance whichmay be obtained through his agent, through another insurer, or through theVirginia Automobile Insurance Plan.
6. If sent by mail, or delivered electronically if it is a notice of refusalto renew, comply with the provisions of § 38.2-2208.
Nothing in this subsection prohibits any insurer or agent from including inthe notice of cancellation or refusal to renew, any additional disclosurestatements required by state or federal laws, or any additional informationrelating to the availability of other insurance.
F. Nothing in this section shall apply:
1. 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 manifested its willingnessto renew in writing to the insured. The written manifestation shall includethe name of a proposed insurer, the expiration date of the policy, the typeof insurance coverage, and information regarding the estimated renewalpremium. The insurer shall retain a copy of each written manifestation for aperiod of at least one year from the expiration date of any policy that isnot renewed;
2. If the named insured, or his duly constituted attorney-in-fact, hasnotified the insurer or its agent orally, or in writing, if the insurerrequires such notification to be in writing, that he wishes the policy to becanceled or that he does not wish the policy to be renewed, or if prior tothe date of expiration he fails to accept the offer of the insurer to renewthe policy;
3. To any motor vehicle insurance policy which has been in effect less than60 days when the termination notice is mailed or delivered to the insured,unless it is a renewal policy; or
4. 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.
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 representatives, its agents, or its employees; or any personfurnishing to the insurer information as to reasons for cancellation orrefusal to renew, for any statement made by any of them in complying withthis section or for providing information pertaining to the cancellation orrefusal to renew. For the purposes of this section, no insurer shall berequired to furnish a notice of cancellation or refusal to renew to anyoneother than the named insured, any person designated by the named insured, orany other person to whom such notice is required to be given by the terms ofthe policy and the Commissioner.
H. Within 15 days of receipt of the notice of cancellation or refusal torenew, any insured or his attorney shall be entitled to request in writing tothe Commissioner that he review the action of the insurer in canceling orrefusing to renew the policy of the insured. Upon receipt of the request, theCommissioner shall promptly begin a review to determine whether the insurer'scancellation or refusal to renew complies with the requirements of thissection and of § 38.2-2208 if the notice was sent by mail or deliveredelectronically if it is a notice of refusal to renew. The policy shall remainin full force and effect during the pendency of the review by theCommissioner except where the cancellation or refusal to renew is for thereason set forth in subdivision 2 of subsection D of this section, in whichcase the policy shall terminate as of the effective date stated in thenotice. Where the Commissioner finds from the review that the cancellation orrefusal to renew has not complied with the requirements of this section or of§ 38.2-2208, he shall immediately notify the insurer, the insured and anyother person to whom such notice was required to be given by the terms of thepolicy that the cancellation or refusal to renew is not effective. Nothing inthis section authorizes the Commissioner to substitute his judgment as tounderwriting for that of the insurer. Where the Commissioner finds in favorof the insured, the Commission in its discretion may award the insuredreasonable attorneys' fees.
I. Each insurer shall maintain for at least one year, records of cancellationand refusal to renew and copies of every notice or statement referred to insubsection E of this section that it sends to any of its insureds.
J. The provisions of this section shall not apply to any insurer that limitsthe issuance of policies of motor vehicle liability insurance to one class orgroup of persons engaged in any one particular profession, trade, occupation,or business. Nothing in this section requires an insurer to renew a policy ofmotor vehicle insurance if the insured does not conform to the occupationalor membership requirements of an insurer who limits its writings to anoccupation or membership of an organization. No insurer is required to renewa policy if the insured becomes a nonresident of Virginia.
K. Notwithstanding any other provision of this section, a motor vehicleinsurance policy with a policy period or term of five months or less mayexpire at its expiration date when the insurer has manifested in writing itswillingness to renew the policy for at least 30 days and has mailed ordelivered the written manifestation to the insured at least 15 days beforethe expiration date of the policy. The written manifestation shall includethe name of the proposed insurer, the expiration date of the policy, the typeof insurance coverage, and the estimated renewal premium. The insurer shallretain a copy of the written manifestation for at least one year from theexpiration date of any policy that is not renewed.
(1970, c. 564, § 38.1-381.5; 1972, c. 273; 1975, cc. 63, 319; 1978, c. 441;1982, c. 482; 1983, cc. 125, 371; 1984, c. 340; 1986, c. 562; 1988, c. 655;1990, c. 960; 1991, c. 116; 1995, c. 3; 1996, cc. 206, 239; 1998, cc. 141,142; 2003, cc. 543, 553; 2006, cc. 851, 889; 2008, cc. 58, 221; 2009, c. 215.)
