38.2-1906.1 - Misquote of premium. - Virginia Statutes

§ 38.2-1906.1. Misquote of premium.

Notwithstanding any other provision of this chapter, if an insurer or itsagent provides a written quotation for insurance to an insured or applicantfor insurance and the rate filing in effect for the insurer results in apremium increase of ten percent or more over the quoted premium, the insuredor applicant may, within fifteen days of written notification of the increaseby the insurer or its agent, request cancellation of the contract or policy.The insurer shall, upon receipt of such request, cancel the contract orpolicy calculating the earned premium pro rata using the premium originallyquoted by the insurer or its agent. Nothing in this section shall apply toany increase in premium which is the result of incorrect informationfurnished by the insured or applicant or information omitted by the insuredor applicant.

(1990, c. 503.)