38.2-514.1 - Disclosure required. - Virginia Statutes

§ 38.2-514.1. Disclosure required.

A. Any agent selling, soliciting, or negotiating a contract of insurance inconjunction with any automobile club service agreement or in conjunction withany accidental death and dismemberment policy shall provide to the applicant,at the time of application, a written disclosure which shall contain:

1. The name or type of each policy or contract of insurance and automobileclub service agreement for which application has been made;

2. The premium quotation associated with each policy or contract of insuranceand the cost of any dues, assessments or periodic payments of moneyassociated with each automobile club service agreement for which applicationhas been made; and

3. A statement that the applicant has elected to purchase such policies,contracts, or automobile club service agreements.

B. The disclosure required by this section shall be signed and dated by theagent and the applicant. A copy of the signed disclosure shall be given tothe applicant at the time of application. If the application is made bytelephonic or electronic request, a copy of the disclosure shall be signedand dated by the agent and shall be mailed to the applicant within tencalendar days of the application.

C. The provisions of this section shall apply only to the original issuanceof policies or contracts of insurance and automobile club service agreementscovering personal, family, or household needs rather than business orprofessional needs. As used in this section, an automobile club serviceagreement is an agreement issued by an automobile club as defined in §13.1-400.1.

D. Notwithstanding subsections A, B and C, this section shall not apply tothe sale of group insurance.

(1996, c. 473; 2001, c. 706.)