§ 38.2-3725. Policy forms to be filed with Commission; approval ordisapproval by Commission.
A. No form shall be delivered or issued for delivery in this Commonwealthuntil a copy of each form has been filed with and approved by the Commission.
B. If a group policy of credit life or credit accident and sickness insuranceis delivered in another state, the insurer shall be required to file thegroup certificate, application or enrollment request, and notice of proposedinsurance delivered or issued for delivery in this state for approval. Theseforms shall comply with § 38.2-3724, with the exception of subsection D and §38.2-3737. The premium rates shall comply with those established in thischapter or it must be demonstrated to the satisfaction of the Commission thatthe rates are actuarially equivalent to those required by §§ 38.2-3726 and38.2-3727 if the coverage differs from that required in Virginia. In no caseshall the premiums exceed those set by the Commission in §§ 38.2-3726 and38.2-3727, as amended by § 38.2-3730.
C. The Commission shall disapprove or withdraw approval previously given toany form if the Commission determines that:
1. It does not comply with the laws of this Commonwealth;
2. It contains any provision or has any title, heading, backing or otherindication of the contents of any or all of its provisions which encouragemisrepresentation or are unjust, unfair, misleading, deceptive or contrary tothe public policy of this Commonwealth; or
3. The premium rates or charges are not reasonable in relation to thebenefits provided.
D. The benefits provided by any credit life insurance form shall beconsidered reasonable in relation to the premium charged provided that therate does not exceed the current prima facie rate set by the Commission. Theprima facie rate that shall be effective January 1, 1993, shall be that setforth in § 38.2-3726. Thereafter, effective January 1, 1995, the Commissionshall, on a triennial basis, set forth adjusted prima facie rates that willachieve a sixty percent loss ratio. The methodology used by the Commission insetting the prima facie rates shall be as set forth in § 38.2-3730. The primafacie rates shall be provided to insurers no later than September 1 prior toeach triennium and shall be effective as to all forms issued on or afterJanuary 1 of the following triennium.
E. The benefits provided by any credit accident and sickness insurance formshall be considered reasonable in relation to the premium charged providedthat the rate does not exceed the current prima facie rates set by theCommission. The Commission shall set forth adjusted prima facie rates thatwill achieve a fifty percent loss ratio as of January 1, 1993, and adjustedprima facie rates that will achieve a sixty percent loss ratio as of January1, 1995. Thereafter, the Commission shall, on a triennial basis, set forthadjusted prima facie rates that will achieve a sixty percent loss ratio. Themethodology used by the Commission in setting the prima facie rates shall beas set forth in § 38.2-3730. The prima facie rates shall be provided toinsurers no later than September 1, 1992, for the rates to be effectiveJanuary 1, 1993; September 1, 1994, for the rates to be effective January 1,1995; and September 1 prior to each triennium thereafter, and shall beeffective as to all forms issued on or after such January 1.
F. If necessary to assure availability of credit insurance, the Commissionmay consider other factors in order to provide a fair return to insurers.These other factors may include, but are not limited to, the following: (i)actual and expected loss experience; (ii) general and administrativeexpenses; (iii) loss settlement and adjustment expenses; (iv) reasonablecreditor compensation; (v) investment income; (vi) the manner in whichpremiums are charged; (vii) other acquisition costs, reserves, taxes,regulatory license fees and fund assessments; and (viii) other relevant dataconsistent with generally accepted actuarial standards.
G. The Commission shall, within thirty days after the filing of any formrequiring approval, notify the insurer filing the form of the form's approvalor disapproval. If a form is disapproved, the Commission shall also notifythe insurer of its reasons for disapproval. The Commission may extend theperiod within which it shall indicate its approval or disapproval of a formby thirty days. Any form received but not approved or disapproved by theCommission shall be deemed approved at the expiration of the thirty days, orsixty days if the period is extended. No insurer shall use a form deemedapproved under the provisions of this section until the insurer has filedwith the Commission a written notice of its intent to use the form togetherwith a copy of the form and the original transmittal letter thereof. Thenotice shall be filed in the offices of the Commission at least ten daysprior to the insurer's use of the form.
H. If the Commission proposes to withdraw approval previously given to anyform, it shall notify the insurer in writing not less than thirty days priorto the proposed effective date of withdrawal and give its reasons forwithdrawal. No insurer shall issue such forms or use them after the effectivedate of withdrawal, except as provided in subsection I of this section.
I. Any insurer aggrieved by the disapproval or withdrawal of approval of anyform may proceed as indicated in § 38.2-1926.
(1982, c. 223, § 38.1-482.7:1; 1986, c. 562, § 38.2-3710; 1992, c. 586; 1999,c. 586.)
§ 38.2-3725. Policy forms to be filed with Commission; approval ordisapproval by Commission.
A. No form shall be delivered or issued for delivery in this Commonwealthuntil a copy of each form has been filed with and approved by the Commission.
B. If a group policy of credit life or credit accident and sickness insuranceis delivered in another state, the insurer shall be required to file thegroup certificate, application or enrollment request, and notice of proposedinsurance delivered or issued for delivery in this state for approval. Theseforms shall comply with § 38.2-3724, with the exception of subsection D and §38.2-3737. The premium rates shall comply with those established in thischapter or it must be demonstrated to the satisfaction of the Commission thatthe rates are actuarially equivalent to those required by §§ 38.2-3726 and38.2-3727 if the coverage differs from that required in Virginia. In no caseshall the premiums exceed those set by the Commission in §§ 38.2-3726 and38.2-3727, as amended by § 38.2-3730.
C. The Commission shall disapprove or withdraw approval previously given toany form if the Commission determines that:
1. It does not comply with the laws of this Commonwealth;
2. It contains any provision or has any title, heading, backing or otherindication of the contents of any or all of its provisions which encouragemisrepresentation or are unjust, unfair, misleading, deceptive or contrary tothe public policy of this Commonwealth; or
3. The premium rates or charges are not reasonable in relation to thebenefits provided.
D. The benefits provided by any credit life insurance form shall beconsidered reasonable in relation to the premium charged provided that therate does not exceed the current prima facie rate set by the Commission. Theprima facie rate that shall be effective January 1, 1993, shall be that setforth in § 38.2-3726. Thereafter, effective January 1, 1995, the Commissionshall, on a triennial basis, set forth adjusted prima facie rates that willachieve a sixty percent loss ratio. The methodology used by the Commission insetting the prima facie rates shall be as set forth in § 38.2-3730. The primafacie rates shall be provided to insurers no later than September 1 prior toeach triennium and shall be effective as to all forms issued on or afterJanuary 1 of the following triennium.
E. The benefits provided by any credit accident and sickness insurance formshall be considered reasonable in relation to the premium charged providedthat the rate does not exceed the current prima facie rates set by theCommission. The Commission shall set forth adjusted prima facie rates thatwill achieve a fifty percent loss ratio as of January 1, 1993, and adjustedprima facie rates that will achieve a sixty percent loss ratio as of January1, 1995. Thereafter, the Commission shall, on a triennial basis, set forthadjusted prima facie rates that will achieve a sixty percent loss ratio. Themethodology used by the Commission in setting the prima facie rates shall beas set forth in § 38.2-3730. The prima facie rates shall be provided toinsurers no later than September 1, 1992, for the rates to be effectiveJanuary 1, 1993; September 1, 1994, for the rates to be effective January 1,1995; and September 1 prior to each triennium thereafter, and shall beeffective as to all forms issued on or after such January 1.
F. If necessary to assure availability of credit insurance, the Commissionmay consider other factors in order to provide a fair return to insurers.These other factors may include, but are not limited to, the following: (i)actual and expected loss experience; (ii) general and administrativeexpenses; (iii) loss settlement and adjustment expenses; (iv) reasonablecreditor compensation; (v) investment income; (vi) the manner in whichpremiums are charged; (vii) other acquisition costs, reserves, taxes,regulatory license fees and fund assessments; and (viii) other relevant dataconsistent with generally accepted actuarial standards.
G. The Commission shall, within thirty days after the filing of any formrequiring approval, notify the insurer filing the form of the form's approvalor disapproval. If a form is disapproved, the Commission shall also notifythe insurer of its reasons for disapproval. The Commission may extend theperiod within which it shall indicate its approval or disapproval of a formby thirty days. Any form received but not approved or disapproved by theCommission shall be deemed approved at the expiration of the thirty days, orsixty days if the period is extended. No insurer shall use a form deemedapproved under the provisions of this section until the insurer has filedwith the Commission a written notice of its intent to use the form togetherwith a copy of the form and the original transmittal letter thereof. Thenotice shall be filed in the offices of the Commission at least ten daysprior to the insurer's use of the form.
H. If the Commission proposes to withdraw approval previously given to anyform, it shall notify the insurer in writing not less than thirty days priorto the proposed effective date of withdrawal and give its reasons forwithdrawal. No insurer shall issue such forms or use them after the effectivedate of withdrawal, except as provided in subsection I of this section.
I. Any insurer aggrieved by the disapproval or withdrawal of approval of anyform may proceed as indicated in § 38.2-1926.
(1982, c. 223, § 38.1-482.7:1; 1986, c. 562, § 38.2-3710; 1992, c. 586; 1999,c. 586.)
§ 38.2-3725. Policy forms to be filed with Commission; approval ordisapproval by Commission.
A. No form shall be delivered or issued for delivery in this Commonwealthuntil a copy of each form has been filed with and approved by the Commission.
B. If a group policy of credit life or credit accident and sickness insuranceis delivered in another state, the insurer shall be required to file thegroup certificate, application or enrollment request, and notice of proposedinsurance delivered or issued for delivery in this state for approval. Theseforms shall comply with § 38.2-3724, with the exception of subsection D and §38.2-3737. The premium rates shall comply with those established in thischapter or it must be demonstrated to the satisfaction of the Commission thatthe rates are actuarially equivalent to those required by §§ 38.2-3726 and38.2-3727 if the coverage differs from that required in Virginia. In no caseshall the premiums exceed those set by the Commission in §§ 38.2-3726 and38.2-3727, as amended by § 38.2-3730.
C. The Commission shall disapprove or withdraw approval previously given toany form if the Commission determines that:
1. It does not comply with the laws of this Commonwealth;
2. It contains any provision or has any title, heading, backing or otherindication of the contents of any or all of its provisions which encouragemisrepresentation or are unjust, unfair, misleading, deceptive or contrary tothe public policy of this Commonwealth; or
3. The premium rates or charges are not reasonable in relation to thebenefits provided.
D. The benefits provided by any credit life insurance form shall beconsidered reasonable in relation to the premium charged provided that therate does not exceed the current prima facie rate set by the Commission. Theprima facie rate that shall be effective January 1, 1993, shall be that setforth in § 38.2-3726. Thereafter, effective January 1, 1995, the Commissionshall, on a triennial basis, set forth adjusted prima facie rates that willachieve a sixty percent loss ratio. The methodology used by the Commission insetting the prima facie rates shall be as set forth in § 38.2-3730. The primafacie rates shall be provided to insurers no later than September 1 prior toeach triennium and shall be effective as to all forms issued on or afterJanuary 1 of the following triennium.
E. The benefits provided by any credit accident and sickness insurance formshall be considered reasonable in relation to the premium charged providedthat the rate does not exceed the current prima facie rates set by theCommission. The Commission shall set forth adjusted prima facie rates thatwill achieve a fifty percent loss ratio as of January 1, 1993, and adjustedprima facie rates that will achieve a sixty percent loss ratio as of January1, 1995. Thereafter, the Commission shall, on a triennial basis, set forthadjusted prima facie rates that will achieve a sixty percent loss ratio. Themethodology used by the Commission in setting the prima facie rates shall beas set forth in § 38.2-3730. The prima facie rates shall be provided toinsurers no later than September 1, 1992, for the rates to be effectiveJanuary 1, 1993; September 1, 1994, for the rates to be effective January 1,1995; and September 1 prior to each triennium thereafter, and shall beeffective as to all forms issued on or after such January 1.
F. If necessary to assure availability of credit insurance, the Commissionmay consider other factors in order to provide a fair return to insurers.These other factors may include, but are not limited to, the following: (i)actual and expected loss experience; (ii) general and administrativeexpenses; (iii) loss settlement and adjustment expenses; (iv) reasonablecreditor compensation; (v) investment income; (vi) the manner in whichpremiums are charged; (vii) other acquisition costs, reserves, taxes,regulatory license fees and fund assessments; and (viii) other relevant dataconsistent with generally accepted actuarial standards.
G. The Commission shall, within thirty days after the filing of any formrequiring approval, notify the insurer filing the form of the form's approvalor disapproval. If a form is disapproved, the Commission shall also notifythe insurer of its reasons for disapproval. The Commission may extend theperiod within which it shall indicate its approval or disapproval of a formby thirty days. Any form received but not approved or disapproved by theCommission shall be deemed approved at the expiration of the thirty days, orsixty days if the period is extended. No insurer shall use a form deemedapproved under the provisions of this section until the insurer has filedwith the Commission a written notice of its intent to use the form togetherwith a copy of the form and the original transmittal letter thereof. Thenotice shall be filed in the offices of the Commission at least ten daysprior to the insurer's use of the form.
H. If the Commission proposes to withdraw approval previously given to anyform, it shall notify the insurer in writing not less than thirty days priorto the proposed effective date of withdrawal and give its reasons forwithdrawal. No insurer shall issue such forms or use them after the effectivedate of withdrawal, except as provided in subsection I of this section.
I. Any insurer aggrieved by the disapproval or withdrawal of approval of anyform may proceed as indicated in § 38.2-1926.
(1982, c. 223, § 38.1-482.7:1; 1986, c. 562, § 38.2-3710; 1992, c. 586; 1999,c. 586.)
