Virginia-Specific Insurance Statutes, Regulations, and Market Practices
Regulator and market
Insurance is administered by the Bureau of Insurance within the State Corporation Commission; the Commissioner of Insurance heads the Bureau. Insurers must be admitted to write in Virginia, and nonadmitted carriers must be accessed through licensed surplus lines brokers. Producers hold two-year licenses and must complete continuing education each term, including ethics hours. The Virginia Property and Casualty Insurance Guaranty Association responds to claims against insolvent admitted insurers up to statutory limits.
Residual markets
- The Virginia Property Insurance Association is the state's FAIR plan, providing basic property coverage where the voluntary market will not.
- The Virginia automobile assigned risk plan provides liability coverage for high-risk drivers.
- Flood is available only through the NFIP or a private flood carrier - never under a homeowners policy.
Auto requirements
Minimum liability limits are $25,000/$50,000/$20,000. Insurers must offer UM/UIM at limits equal to the liability limits; the named insured may reduce them, but only in writing. Virginia permits a $500 uninsured motorist fee as an alternative to purchasing liability coverage. Virginia is a pure contributory negligence state with a two-year statute of limitations for personal injury.
Policyholder protections
Virginia requires advance written notice of cancellation - a shorter period for nonpayment of premium and a longer period for other reasons - plus notice of nonrenewal and of premium increases. The Unfair Trade Practices statutes prohibit misrepresentation, rebating, twisting, and unfair claim settlement practices.
Traps
- Cancellation notice periods differ depending on the reason for cancellation.
- UM/UIM cannot be reduced without a written rejection.
- The guaranty association is not a license to buy from weak insurers; it has claim caps.