38.2-3430.5 - Application of financial capacity limits. - Virginia Statutes

§ 38.2-3430.5. Application of financial capacity limits.

A. A health insurance issuer may deny health insurance coverage in theindividual market to an eligible individual if the health insurance issuerhas demonstrated to the satisfaction of the Commission that:

1. It does not have the financial reserves necessary to underwrite additionalcoverage; and

2. It is applying this section uniformly to all individuals in the individualmarket in the Commonwealth consistent with the laws of this Commonwealth andwithout regard to any health status-related factor of such individuals andwithout regard to whether the individuals are eligible individuals.

B. A health insurance issuer, upon denying individual health insurancecoverage in any service area in accordance with subsection A, may not offersuch coverage in the individual market within such service area for a periodof 180 days after the date such coverage is denied or until the healthinsurance issuer has demonstrated to the satisfaction of the Commission thatthe health insurance issuer has sufficient financial reserves to underwriteadditional coverage, whichever is later.

(1997, cc. 807, 913.)