38.2-2114.1 - Powers of Commission; replacement policies. - Virginia Statutes

§ 38.2-2114.1. Powers of Commission; replacement policies.

Upon the verified petition of an insurer, where the petitioning insurerproposes to replace all or substantially all of its policies in anotherinsurer, the Commission may relieve the insurer of the requirements ofsubsections B and C of § 38.2-2114 and of the mailing requirements of §38.2-2113; provided the insurer demonstrates to the satisfaction of theCommission that (i) the replacement policy is underwritten by an affiliateinsurer under common control with the petitioning insurer; (ii) thereplacement policy is substantially similar to the existing policy with thepetitioning insurer; (iii) the premium charged for the replacement policy isno greater than that charged by the petitioning insurer for the existingpolicy; and (iv) the replacement insurer is duly licensed to transact thebusiness of insurance in the Commonwealth of Virginia. The replacementinsurer shall retain a copy of any offer of replacement for a period of oneyear from the expiration of any existing policy that is not replaced. TheCommission may further condition any such relief to protect the bestinterests of the policyholder.

(1991, c. 292.)