38.2-1812.2 - Administrative charges in excess of premium prohibited; exceptions. - Virginia Statutes

§ 38.2-1812.2. Administrative charges in excess of premium prohibited;exceptions.

A. Notwithstanding the provisions of § 38.2-310 and Article 4 (§ 38.2-1837 etseq.) of this chapter, no agent shall charge, or demand or receive from, anapplicant for insurance or a policyholder any consideration in return forrendering services associated with a contract of insurance, when theconsideration is in addition to the premium for such contract, unless:

1. The applicant or policyholder consents in writing before any services arerendered. Consent shall be provided on a form that includes the applicant'sor policyholder's signature, the duration of services and amount of fees tobe charged, the services for which the fees are charged, and a statement thatthe agent is entitled to receive a commission from the insurer for selling,soliciting, or negotiating the insurance; and

2. A schedule of fees and documentation for services rendered is maintainedin the agent's office and is made available to applicants or policyholdersupon request.

B. This section shall not apply to charges for services described insubsection C of § 38.2-4608 when provided by title insurance agents.

C. This section shall apply to new and renewal policies issued or renewed onor after July 1, 1999.

(1999, c. 2; 2001, c. 706.)