38.2-1839 - Contract required; placement of insurance for public bodies. - Virginia Statutes

§ 38.2-1839. Contract required; placement of insurance for public bodies.

A. A licensed insurance consultant that does not sell, solicit or negotiateinsurance as part of his services shall enter into a written contract withhis client prior to any act as a consultant in this Commonwealth. A licensedinsurance consultant that does sell, solicit or negotiate insurance in thisCommonwealth as part of his services shall enter into a written contract withhis client prior to the purchase of any insurance by that client. Thecontract shall include, without limitation, the amount and basis of anyconsulting fee and the duration of employment. If the insurance consultantmay also receive commissions, incentives, bonuses, overrides, or any otherform of remuneration either directly or indirectly as a result of hisservices for selling, soliciting, or negotiating insurance as a part of hisservices in addition to a consulting fee, unless otherwise prohibited, suchinformation shall be disclosed in the contract.

B. No insurance consultant may provide or offer to provide, directly orindirectly, insurance products to a public body while concurrently and on itsbehalf (i) evaluating proposals from other insurance agents and (ii)recommending the placement of insurance.

(1985, c. 3, § 38.1-327.64; 1986, c. 562; 1987, cc. 521, 678; 1996, c. 989;2001, c. 706; 2003, c. 621; 2007, c. 449.)