52-40 - Duties of insurers, their employees and insurance professionals. - Virginia Statutes

§ 52-40. Duties of insurers, their employees and insurance professionals.

A. If any insurer, any employee thereof, or any insurance professional hasknowledge of, or has reason to believe that a violation of § 18.2-178 willbe, is being, or has been committed, that person shall furnish and discloseany information in his possession concerning the fraudulent act to theDepartment, subject to any legal privilege protecting such information.

B. All applications for insurance and all claim forms provided and requiredby an insurer or required by law as a condition of payment of a claim shallcontain a statement, permanently affixed to, or included as a part of theapplication or claim form, that clearly states in substance the following:

"It is a crime to knowingly provide false, incomplete or misleadinginformation to an insurance company for the purpose of defrauding thecompany. Penalties include imprisonment, fines and denial of insurancebenefits."

The lack of a statement required in this subsection does not constitute adefense in any criminal prosecution. The statement required by thissubsection shall not be required on applications and forms relating toreinsurance.

(1998, c. 590.)