38.2-2600 - Definitions. - Virginia Statutes

§ 38.2-2600. Definitions.

As used in this article:

"Fronting company" means a licensed insurer or licensed home protectioncompany which generally transfers to one or more unlicensed insurers orunlicensed home protection companies by reinsurance or otherwise all orsubstantially all of the risk of loss under all of the home protectioncontracts written by it in this Commonwealth.

"Home protection company" means any person who performs, or arranges toperform, services pursuant to a home protection insurance contract.

"Home protection insurance contract" or "contract" means any insurancecontract or agreement whereby a person undertakes for a specified period oftime and for a predetermined fee to furnish, arrange for or indemnify forservice, repair, or replacement of any and all of the structural components,parts, appliances, or systems of any covered residential dwellingnecessitated by wear and tear, deterioration, inherent defect, or by thefailure of an inspection to detect the likelihood of failure.

The contract shall provide for a system to effect repair or replacement ifthe contract undertakes to provide for repair or replacement services. Thecontract shall not include protection against consequential damage from thefailure of any structural component, part, appliance or system.

"Structural component" means the roof, foundation, basement, walls,ceilings, or floors of a home.

(1981, c. 530, §§ 38.1-932, 38.1-944; 1982, c. 132; 1986, c. 562; 2006, c.634.)