{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-2234.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-2234.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-2234.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-2234.html"}],"law_id":83935,"edition_id":1,"section_id":83935,"structure_id":13816,"section_number":"38.2-2234","catch_line":"Insurance credit score disclosure; use of credit information","history":"2003, cc. 543, 553; 2019, c. 704.","full_text":"A\n\nAny insurer issuing or delivering a policy of motor vehicle insurance in this Commonwealth, as defined in \u00a7 38.2-2212, that uses credit information contained in a consumer report for underwriting, tier placement or rating an applicant or insured shall meet the following requirements:1\n\nDisclose, either on the insurance application or at the time the insurance application is taken (i) that it shall obtain credit information in connection with such application, (ii) that the insured may request that his credit information be updated; and (iii) that, if the insured questions the accuracy of the credit information, the insurer will, upon request of the insured, reevaluate the insured based on corrected credit information from a consumer reporting agency. The disclosure may be made by the insurer or its agent. Such disclosure shall be either written or provided to an applicant in the same medium as the application for insurance. The insurer need not provide the disclosure required under this subsection to any insured on a renewal policy, if such insured has previously been provided a disclosure. Use of the following example disclosure constitutes compliance with this subsection: “In connection with this application for insurance, we shall review your credit report or obtain or use an insurance credit score based on the information contained in that credit report. We may use a third party in connection with the development of your insurance credit score. You may request that your credit information be updated and if you question the accuracy of the credit information, we will, upon your request, reevaluate you based on corrected credit information from a consumer reporting agency.”2\n\nIf an insurer takes an adverse action, based in whole or in part, upon credit information, the insurer shall provide notice to the applicant or insured that the adverse action was based, in whole or in part, on credit information. Such notice shall also either include a statement advising the applicant or insured of the primary factors or characteristics that were used as the basis for the adverse action, or notify the applicant or insured that he may request such information. For the purposes of this section, adverse action means a denial, nonrenewal or cancellation of, an increase in any charge for or refusal to apply a discount, or placement in a less favorable tier, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with underwriting, tier placement or rating of insurance based on the applicant’s or insured’s credit information. Adverse action includes circumstances where due to his credit information the applicant or insured (i) receives a higher rate, (ii) is placed in a less favorable tier, and (iii) when there are multiple companies available within a group of insurers, receives coverage in a less favorably priced company of the group. Notice is required when the effect of the credit information would put the applicant or insured in a worse position than if the credit information had not been considered. In the case of renewals, the circumstances listed in clauses (i), (ii), and (iii) shall not be deemed adverse actions if, due to the insured’s credit information, the insured is not receiving a less favorable rate or placed in a less favorable tier or company than during the policy period immediately preceding renewal.B\n\nIf an insurer uses credit information from a consumer report for tier placement or rating of its renewal business for a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth the insurer shall be required to update the credit information at least once every three years, provided, however, that the insurer shall be required to update an insured’s credit information within the three-year period if requested by the insured. If an update request is made by the insured at least 45 days prior to the end of the policy term, any adjustment to the premium required by the update of the insured’s credit information shall take effect at the first renewal following the request for update of the insured’s credit information. If an update request is made by the insured within 45 days of the end of the policy term, the insurer shall have the option of applying any adjustment to the premium required by the update of the insured’s credit information to the first renewal or the second renewal following the request for update of the insured’s credit information. An insurer need not update the credit information more frequently than once every policy term. Notwithstanding the requirements of this subsection, no insurer need obtain updated credit information if the insured has the most favorably priced tier or rate based on his credit information.C\n\nNotwithstanding the provisions of subdivision A 3 of § 38.2-1904, if an insurer issuing or delivering a policy of motor vehicle insurance, as defined in § 38.2-2212, in this Commonwealth is unable to obtain credit information from a consumer report or when an insured or applicant has insufficient credit to produce an insurance credit score, the insurer shall underwrite, tier, or rate the individual risk in one of the following ways: (i) as if the risk received a neutral or average insurance credit score, as defined by the insurer, (ii) by excluding the use of credit information as a factor and using only other underwriting, tiering, or rating criteria, or (iii) in accordance with established underwriting guidelines or filed tiering or rating rules. Any such established underwriting guidelines or filed tiering or rating rules shall consider other actuarially justified factors associated with the risk in addition to the inability to obtain credit information or the insufficiency of the credit information.D\n\nThe following factors shall not be used as credit criteria or to determine an insurance credit score for underwriting, tier placement, or rating purposes for a policy of motor vehicle insurance, as defined in \u00a7 38.2-2212, issued or delivered in this Commonwealth:1\n\nInformation that has been identified by the consumer reporting agency as disputed by the consumer and coded as such, if the use of such disputed information would result in an adverse action;2\n\nInformation that has been identified by the consumer reporting agency as related to insurance inquiries or nonconsumer-initiated inquiries and coded as such;3\n\nInformation that has been identified by the consumer reporting agency as related to collection accounts with a medical industry code;4\n\nInformation that includes multiple lender inquiries, if coded by the consumer reporting agency as being from the home mortgage industry and made within 30 days of one another, unless only one inquiry is considered;5\n\nInformation that includes multiple lender inquiries, if coded by the consumer reporting agency as being from the automobile lending industry and made within 30 days of one another, unless only one inquiry is considered;6\n\nIncome, gender, address, zip code, ethnic group, race, color, religion, marital status, or nationality of the consumer; or7\n\nThe total available line of credit; however, an insurer may consider the total amount of outstanding debt in relation to the total available line of credit.E\n\nNo insurer shall take an adverse action against an applicant for a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth, based on credit information, unless an insurer obtains and uses a consumer report procured within 90 days from the date the policy is first written.F\n\nNotwithstanding anything to the contrary, for a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth, an insurer may, upon request, provide reasonable exceptions for an individual whose credit information is directly and adversely impacted by a catastrophic event, as determined by the insurer, including catastrophic illness or injury or the death of a spouse or member of the same household. The insurer may require reasonable documentation of the event prior to granting an exception. No insurer shall be deemed out of compliance with its filed rules and rates as a result of granting an exception pursuant to this subsection.G\n\nUpon the request of an insured or applicant with respect to a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth, for a reevaluation as set forth in this section, the insurer shall reevaluate the individual based on corrected credit information from a consumer reporting agency. If the reevaluation results in a lower premium, the lower premium shall be applied retroactively to the effective date of the current policy term, and the insurer shall either refund or credit the amount to the insured. The insurer may require reasonable documentation of the corrected information from the consumer reporting agency prior to the reevaluation.H\n\nAn insurer shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of an agent who obtains or uses credit information or insurance credit scores for an insurer, provided the agent follows the instructions or procedures established by the insurer and complies with any applicable law. Nothing in this subsection shall be construed to provide an applicant or insured with a cause of action that does not exist in the absence of this subsection.I\n\nNo consumer reporting agency shall provide or sell data or lists that include any information that in whole or in part was submitted in conjunction with an insurance inquiry about an individual’s credit information or a request for a consumer report or an insurance credit score. Such information includes the expiration dates of an insurance policy or any other information that may identify time periods during which an individual’s insurance may expire and the terms and conditions of the individual’s insurance coverage. The restrictions provided in this subsection do not apply to data or lists the consumer reporting agency supplies to the insurance agent from whom information was received or the insurer on whose behalf such agent acted. Nothing in this subsection shall be construed to restrict any insurer from being able to obtain a claims history report or a motor vehicle report.J\n\nFor the purposes of this section, “insurance credit score” means a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured for or under a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth.K\n\nThe provisions of this section shall apply only to insurance purchased primarily for personal, family, or household purposes.","order_by":null,"text":{"0":{"id":300775,"text":"Any insurer issuing or delivering a policy of motor vehicle insurance in this Commonwealth, as defined in \u00a7 38.2-2212, that uses credit information contained in a consumer report for underwriting, tier placement or rating an applicant or insured shall meet the following requirements:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":300776,"text":"Disclose, either on the insurance application or at the time the insurance application is taken (i) that it shall obtain credit information in connection with such application, (ii) that the insured may request that his credit information be updated; and (iii) that, if the insured questions the accuracy of the credit information, the insurer will, upon request of the insured, reevaluate the insured based on corrected credit information from a consumer reporting agency. The disclosure may be made by the insurer or its agent. Such disclosure shall be either written or provided to an applicant in the same medium as the application for insurance. The insurer need not provide the disclosure required under this subsection to any insured on a renewal policy, if such insured has previously been provided a disclosure. Use of the following example disclosure constitutes compliance with this subsection: “In connection with this application for insurance, we shall review your credit report or obtain or use an insurance credit score based on the information contained in that credit report. We may use a third party in connection with the development of your insurance credit score. You may request that your credit information be updated and if you question the accuracy of the credit information, we will, upon your request, reevaluate you based on corrected credit information from a consumer reporting agency.”","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":300777,"text":"If an insurer takes an adverse action, based in whole or in part, upon credit information, the insurer shall provide notice to the applicant or insured that the adverse action was based, in whole or in part, on credit information. Such notice shall also either include a statement advising the applicant or insured of the primary factors or characteristics that were used as the basis for the adverse action, or notify the applicant or insured that he may request such information. For the purposes of this section, adverse action means a denial, nonrenewal or cancellation of, an increase in any charge for or refusal to apply a discount, or placement in a less favorable tier, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with underwriting, tier placement or rating of insurance based on the applicant’s or insured’s credit information. Adverse action includes circumstances where due to his credit information the applicant or insured (i) receives a higher rate, (ii) is placed in a less favorable tier, and (iii) when there are multiple companies available within a group of insurers, receives coverage in a less favorably priced company of the group. Notice is required when the effect of the credit information would put the applicant or insured in a worse position than if the credit information had not been considered. In the case of renewals, the circumstances listed in clauses (i), (ii), and (iii) shall not be deemed adverse actions if, due to the insured’s credit information, the insured is not receiving a less favorable rate or placed in a less favorable tier or company than during the policy period immediately preceding renewal.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":300778,"text":"If an insurer uses credit information from a consumer report for tier placement or rating of its renewal business for a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth the insurer shall be required to update the credit information at least once every three years, provided, however, that the insurer shall be required to update an insured’s credit information within the three-year period if requested by the insured. If an update request is made by the insured at least 45 days prior to the end of the policy term, any adjustment to the premium required by the update of the insured’s credit information shall take effect at the first renewal following the request for update of the insured’s credit information. If an update request is made by the insured within 45 days of the end of the policy term, the insurer shall have the option of applying any adjustment to the premium required by the update of the insured’s credit information to the first renewal or the second renewal following the request for update of the insured’s credit information. An insurer need not update the credit information more frequently than once every policy term. Notwithstanding the requirements of this subsection, no insurer need obtain updated credit information if the insured has the most favorably priced tier or rate based on his credit information.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":300779,"text":"Notwithstanding the provisions of subdivision A 3 of § 38.2-1904, if an insurer issuing or delivering a policy of motor vehicle insurance, as defined in § 38.2-2212, in this Commonwealth is unable to obtain credit information from a consumer report or when an insured or applicant has insufficient credit to produce an insurance credit score, the insurer shall underwrite, tier, or rate the individual risk in one of the following ways: (i) as if the risk received a neutral or average insurance credit score, as defined by the insurer, (ii) by excluding the use of credit information as a factor and using only other underwriting, tiering, or rating criteria, or (iii) in accordance with established underwriting guidelines or filed tiering or rating rules. Any such established underwriting guidelines or filed tiering or rating rules shall consider other actuarially justified factors associated with the risk in addition to the inability to obtain credit information or the insufficiency of the credit information.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":300780,"text":"The following factors shall not be used as credit criteria or to determine an insurance credit score for underwriting, tier placement, or rating purposes for a policy of motor vehicle insurance, as defined in \u00a7 38.2-2212, issued or delivered in this Commonwealth:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"6":{"id":300781,"text":"Information that has been identified by the consumer reporting agency as disputed by the consumer and coded as such, if the use of such disputed information would result in an adverse action;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"7":{"id":300782,"text":"Information that has been identified by the consumer reporting agency as related to insurance inquiries or nonconsumer-initiated inquiries and coded as such;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"8":{"id":300783,"text":"Information that has been identified by the consumer reporting agency as related to collection accounts with a medical industry code;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"9":{"id":300784,"text":"Information that includes multiple lender inquiries, if coded by the consumer reporting agency as being from the home mortgage industry and made within 30 days of one another, unless only one inquiry is considered;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"10":{"id":300785,"text":"Information that includes multiple lender inquiries, if coded by the consumer reporting agency as being from the automobile lending industry and made within 30 days of one another, unless only one inquiry is considered;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"11":{"id":300786,"text":"Income, gender, address, zip code, ethnic group, race, color, religion, marital status, or nationality of the consumer; or","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"12":{"id":300787,"text":"The total available line of credit; however, an insurer may consider the total amount of outstanding debt in relation to the total available line of credit.","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"E"},"13":{"id":300788,"text":"No insurer shall take an adverse action against an applicant for a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth, based on credit information, unless an insurer obtains and uses a consumer report procured within 90 days from the date the policy is first written.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D7","next_prefix":"F"},"14":{"id":300789,"text":"Notwithstanding anything to the contrary, for a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth, an insurer may, upon request, provide reasonable exceptions for an individual whose credit information is directly and adversely impacted by a catastrophic event, as determined by the insurer, including catastrophic illness or injury or the death of a spouse or member of the same household. The insurer may require reasonable documentation of the event prior to granting an exception. No insurer shall be deemed out of compliance with its filed rules and rates as a result of granting an exception pursuant to this subsection.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"15":{"id":300790,"text":"Upon the request of an insured or applicant with respect to a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth, for a reevaluation as set forth in this section, the insurer shall reevaluate the individual based on corrected credit information from a consumer reporting agency. If the reevaluation results in a lower premium, the lower premium shall be applied retroactively to the effective date of the current policy term, and the insurer shall either refund or credit the amount to the insured. The insurer may require reasonable documentation of the corrected information from the consumer reporting agency prior to the reevaluation.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"16":{"id":300791,"text":"An insurer shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of an agent who obtains or uses credit information or insurance credit scores for an insurer, provided the agent follows the instructions or procedures established by the insurer and complies with any applicable law. Nothing in this subsection shall be construed to provide an applicant or insured with a cause of action that does not exist in the absence of this subsection.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"17":{"id":300792,"text":"No consumer reporting agency shall provide or sell data or lists that include any information that in whole or in part was submitted in conjunction with an insurance inquiry about an individual’s credit information or a request for a consumer report or an insurance credit score. Such information includes the expiration dates of an insurance policy or any other information that may identify time periods during which an individual’s insurance may expire and the terms and conditions of the individual’s insurance coverage. The restrictions provided in this subsection do not apply to data or lists the consumer reporting agency supplies to the insurance agent from whom information was received or the insurer on whose behalf such agent acted. Nothing in this subsection shall be construed to restrict any insurer from being able to obtain a claims history report or a motor vehicle report.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"18":{"id":300793,"text":"For the purposes of this section, “insurance credit score” means a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured for or under a policy of motor vehicle insurance, as defined in § 38.2-2212, issued or delivered in this Commonwealth.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"19":{"id":300794,"text":"The provisions of this section shall apply only to insurance purchased primarily for personal, family, or household purposes.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J"}},"ancestry":[{"id":13816,"edition_id":1,"name":"Liability Insurance Policies","identifier":"22","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:57","date_modified":"2026-06-26 03:45:57","permalink":{"id":213545,"object_type":"structure","relational_id":13816,"identifier":"22","token":"38.2\/22","url":"\/38.2\/22\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":76505,"structure_id":13816,"section_number":"38.2-2200","catch_line":"Required provisions as to insolvency or bankruptcy, and as to when action maintained against insurer","url":"\/38.2-2200\/","token":"38.2\/22\/38.2-2200","metadata":false},{"id":82480,"structure_id":13816,"section_number":"38.2-2201","catch_line":"Provisions for payment of medical expense and loss of income benefits; assignment of certain benefits","url":"\/38.2-2201\/","token":"38.2\/22\/38.2-2201","metadata":false},{"id":75263,"structure_id":13816,"section_number":"38.2-2202","catch_line":"Required notice of optional coverage available","url":"\/38.2-2202\/","token":"38.2\/22\/38.2-2202","metadata":false},{"id":85859,"structure_id":13816,"section_number":"38.2-2203","catch_line":"Policy providing for reimbursement for services that may be performed by certain practitioners other than physicians","url":"\/38.2-2203\/","token":"38.2\/22\/38.2-2203","metadata":false},{"id":70028,"structure_id":13816,"section_number":"38.2-2204","catch_line":"Liability insurance on motor vehicles, aircraft, and watercraft; standard provisions; \"omnibus clause.\"","url":"\/38.2-2204\/","token":"38.2\/22\/38.2-2204","metadata":false},{"id":56297,"structure_id":13816,"section_number":"38.2-2205","catch_line":"Liability insurance on motor vehicles; standard provisions; applicability of other valid and collectible insurance","url":"\/38.2-2205\/","token":"38.2\/22\/38.2-2205","metadata":false},{"id":80304,"structure_id":13816,"section_number":"38.2-2205.1","catch_line":"Suspension of liability coverage at insured's request","url":"\/38.2-2205.1\/","token":"38.2\/22\/38.2-2205.1","metadata":false},{"id":76965,"structure_id":13816,"section_number":"38.2-2206","catch_line":"Uninsured motorist insurance coverage","url":"\/38.2-2206\/","token":"38.2\/22\/38.2-2206","metadata":false},{"id":62972,"structure_id":13816,"section_number":"38.2-2207","catch_line":"No policy to exclude coverage to employee","url":"\/38.2-2207\/","token":"38.2\/22\/38.2-2207","metadata":false},{"id":80121,"structure_id":13816,"section_number":"38.2-2208","catch_line":"Notices of cancellation of or refusal to renew motor vehicle insurance policies","url":"\/38.2-2208\/","token":"38.2\/22\/38.2-2208","metadata":false},{"id":76452,"structure_id":13816,"section_number":"38.2-2209","catch_line":"Motor vehicle liability medical benefit insurer not to retain right of subrogation to recover from third party","url":"\/38.2-2209\/","token":"38.2\/22\/38.2-2209","metadata":false},{"id":75993,"structure_id":13816,"section_number":"38.2-2210","catch_line":"Warning concerning cancellation to appear on application for motor vehicle liability insurance; reason for cancellation or nonrenewal required on application","url":"\/38.2-2210\/","token":"38.2\/22\/38.2-2210","metadata":false},{"id":61927,"structure_id":13816,"section_number":"38.2-2211","catch_line":"Motor vehicle liability insurer not to receive credit for other medical expense insurance","url":"\/38.2-2211\/","token":"38.2\/22\/38.2-2211","metadata":false},{"id":80817,"structure_id":13816,"section_number":"38.2-2212","catch_line":"Grounds and procedure for cancellation of or refusal to renew motor vehicle insurance policies; review by Commissioner","url":"\/38.2-2212\/","token":"38.2\/22\/38.2-2212","metadata":false},{"id":71236,"structure_id":13816,"section_number":"38.2-2212.1","catch_line":"Powers of Commission; replacement policies","url":"\/38.2-2212.1\/","token":"38.2\/22\/38.2-2212.1","metadata":false},{"id":57322,"structure_id":13816,"section_number":"38.2-2213","catch_line":"Discrimination in issuance of motor vehicle insurance","url":"\/38.2-2213\/","token":"38.2\/22\/38.2-2213","metadata":false},{"id":55969,"structure_id":13816,"section_number":"38.2-2213.1","catch_line":"Certain action prohibited when motor vehicle owner fails to allow access to recorded data from recording device","url":"\/38.2-2213.1\/","token":"38.2\/22\/38.2-2213.1","metadata":false},{"id":72056,"structure_id":13816,"section_number":"38.2-2214","catch_line":"Statement defining rate classifications to be provided by insurer to insured","url":"\/38.2-2214\/","token":"38.2\/22\/38.2-2214","metadata":false},{"id":56175,"structure_id":13816,"section_number":"38.2-2215","catch_line":"Failure to issue or failure to renew motor vehicle liability insurance on the basis of a motor vehicle's age prohibited","url":"\/38.2-2215\/","token":"38.2\/22\/38.2-2215","metadata":false},{"id":77698,"structure_id":13816,"section_number":"38.2-2216","catch_line":"Medical benefit offset against liability or uninsured motorist coverage prohibited","url":"\/38.2-2216\/","token":"38.2\/22\/38.2-2216","metadata":false},{"id":66919,"structure_id":13816,"section_number":"38.2-2217","catch_line":"Reduction in rates for certain persons who attend mature driver motor vehicle crash prevention courses and driver improvement clinics","url":"\/38.2-2217\/","token":"38.2\/22\/38.2-2217","metadata":false},{"id":62782,"structure_id":13816,"section_number":"38.2-2217.1","catch_line":"Insurers required to renew motor vehicle liability coverage for vanpools; exceptions","url":"\/38.2-2217.1\/","token":"38.2\/22\/38.2-2217.1","metadata":false},{"id":75945,"structure_id":13816,"section_number":"38.2-2218","catch_line":"Adoption of standard forms for motor vehicle insurance","url":"\/38.2-2218\/","token":"38.2\/22\/38.2-2218","metadata":false},{"id":65638,"structure_id":13816,"section_number":"38.2-2219","catch_line":"Hearing on objections to the form","url":"\/38.2-2219\/","token":"38.2\/22\/38.2-2219","metadata":false},{"id":68775,"structure_id":13816,"section_number":"38.2-2220","catch_line":"Use of form after adoption","url":"\/38.2-2220\/","token":"38.2\/22\/38.2-2220","metadata":false},{"id":77162,"structure_id":13816,"section_number":"38.2-2221","catch_line":"Amendment of standard form","url":"\/38.2-2221\/","token":"38.2\/22\/38.2-2221","metadata":false},{"id":68996,"structure_id":13816,"section_number":"38.2-2222","catch_line":"Withdrawal of form","url":"\/38.2-2222\/","token":"38.2\/22\/38.2-2222","metadata":false},{"id":73915,"structure_id":13816,"section_number":"38.2-2223","catch_line":"Variations of, or additions to, form","url":"\/38.2-2223\/","token":"38.2\/22\/38.2-2223","metadata":false},{"id":67966,"structure_id":13816,"section_number":"38.2-2224","catch_line":"Commission to establish guidelines for filing readable motor vehicle insurance policy forms","url":"\/38.2-2224\/","token":"38.2\/22\/38.2-2224","metadata":false},{"id":70751,"structure_id":13816,"section_number":"38.2-2225","catch_line":"Sending copies of orders to companies affected","url":"\/38.2-2225\/","token":"38.2\/22\/38.2-2225","metadata":false},{"id":79233,"structure_id":13816,"section_number":"38.2-2226","catch_line":"Insurer to give notice to claimant of intention to rely on certain defenses and of execution of nonwaiver of rights agreement","url":"\/38.2-2226\/","token":"38.2\/22\/38.2-2226","metadata":false},{"id":64295,"structure_id":13816,"section_number":"38.2-2226.1","catch_line":"Insurer to give notice of settlement of claim","url":"\/38.2-2226.1\/","token":"38.2\/22\/38.2-2226.1","metadata":false},{"id":75189,"structure_id":13816,"section_number":"38.2-2227","catch_line":"Aircraft liability policy not to deny coverage for violation of federal or civil regulations, etc.; permitted exclusions or conditions","url":"\/38.2-2227\/","token":"38.2\/22\/38.2-2227","metadata":false},{"id":54902,"structure_id":13816,"section_number":"38.2-2228","catch_line":"Repealed","url":"\/38.2-2228\/","token":"38.2\/22\/38.2-2228","metadata":false},{"id":54970,"structure_id":13816,"section_number":"38.2-2228.2","catch_line":"Certain medical malpractice claims to be reported to the Commission","url":"\/38.2-2228.2\/","token":"38.2\/22\/38.2-2228.2","metadata":false},{"id":76107,"structure_id":13816,"section_number":"38.2-2229","catch_line":"Claims-made liability insurance","url":"\/38.2-2229\/","token":"38.2\/22\/38.2-2229","metadata":false},{"id":71578,"structure_id":13816,"section_number":"38.2-2230","catch_line":"Mandatory offer of rental reimbursement coverage","url":"\/38.2-2230\/","token":"38.2\/22\/38.2-2230","metadata":false},{"id":81873,"structure_id":13816,"section_number":"38.2-2231","catch_line":"Physical damage arbitration between insurers; alternate forums","url":"\/38.2-2231\/","token":"38.2\/22\/38.2-2231","metadata":false},{"id":54821,"structure_id":13816,"section_number":"38.2-2232","catch_line":"Liability insurance on private pleasure watercraft; optional coverage","url":"\/38.2-2232\/","token":"38.2\/22\/38.2-2232","metadata":false},{"id":69145,"structure_id":13816,"section_number":"38.2-2233","catch_line":"Installment payments of motor vehicle insurance","url":"\/38.2-2233\/","token":"38.2\/22\/38.2-2233","metadata":false},{"id":83935,"structure_id":13816,"section_number":"38.2-2234","catch_line":"Insurance credit score disclosure; use of credit information","url":"\/38.2-2234\/","token":"38.2\/22\/38.2-2234","metadata":false}],"previous_section":{"id":69145,"structure_id":13816,"section_number":"38.2-2233","catch_line":"Installment payments of motor vehicle insurance","url":"\/38.2-2233\/","token":"38.2\/22\/38.2-2233","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-2234\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapters 543<\/a> and 553<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2019, chapter 704<\/a>.<\/p>","references":false,"refers_to":[{"id":68129,"section_number":"38.2-1904","catch_line":"Rate standards","order_by":null,"url":"\/38.2-1904\/"},{"id":80817,"section_number":"38.2-2212","catch_line":"Grounds and procedure for cancellation of or refusal to renew motor vehicle insurance policies; review by Commissioner","order_by":null,"url":"\/38.2-2212\/"}],"permalink":{"id":213707,"object_type":"law","relational_id":83935,"identifier":"38.2-2234","token":"38.2\/22\/38.2-2234","url":"\/38.2-2234\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-2234\/","token":"38.2\/22\/38.2-2234","dublin_core":{"Title":"Insurance credit score disclosure; use of credit information","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-2234","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any insurer<\/span> issuing or delivering a policy of motor vehicle insurance<\/span> in this Commonwealth, as defined in \u00a7 38.2-2212<\/a>, that uses credit information contained in a consumer report for underwriting, tier placement or rating an applicant or insured shall meet the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Disclose, either on the insurance application or at the time the insurance application is taken (i) that it shall obtain credit information in connection with such application, (ii) that the insured may request that his credit information be updated; and (iii) that, if the insured questions the accuracy of the credit information, the insurer<\/span> will, upon request of the insured, reevaluate the insured based on corrected credit information from a consumer reporting agency. The disclosure may be made by the insurer<\/span> or its agent. Such disclosure shall be either written or provided to an applicant in the same medium as the application for insurance. The insurer<\/span> need not provide the disclosure required under this subsection to any insured on a renewal policy, if such insured has previously been provided a disclosure. Use of the following example disclosure constitutes compliance with this subsection: “In connection with this application for insurance, we shall review your credit report or obtain or use an insurance credit score<\/span> based on the information contained in that credit report. We may use a third party<\/span> in connection with the development of your insurance credit score<\/span>. You may request that your credit information be updated and if you question the accuracy of the credit information, we will, upon your request, reevaluate you based on corrected credit information from a consumer reporting agency.” <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If an insurer<\/span> takes an adverse action, based in whole or in part, upon credit information, the insurer<\/span> shall provide notice to the applicant or insured that the adverse action was based, in whole or in part, on credit information. Such notice shall also either include a statement advising the applicant or insured of the primary factors or characteristics that were used as the basis for the adverse action, or notify the applicant or insured that he may request such information. For the purposes of this section, adverse action means a denial, nonrenewal or cancellation of, an increase in any charge for or refusal to apply a discount, or placement in a less favorable tier, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with underwriting, tier placement or rating of insurance based on the applicant’s or insured’s credit information. Adverse action includes circumstances where due to his credit information the applicant or insured (i) receives a higher rate<\/span>, (ii) is placed in a less favorable tier, and (iii) when there are multiple companies available within a group of insurers<\/span>, receives coverage in a less favorably priced company<\/span> of the group. Notice is required when the effect of the credit information would put the applicant or insured in a worse position than if the credit information had not been considered. In the case of renewals, the circumstances listed in clauses (i), (ii), and (iii) shall not be deemed adverse actions if, due to the insured’s credit information, the insured is not receiving a less favorable rate<\/span> or placed in a less favorable tier or company<\/span> than during the policy period immediately preceding renewal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If an insurer<\/span> uses credit information from a consumer report for tier placement or rating of its renewal business for a policy of motor vehicle insurance, as defined in § 38.2-2212<\/a>, issued or delivered in this Commonwealth the insurer<\/span> shall be required to update the credit information at least once every three years, provided, however, that the insurer<\/span> shall be required to update an insured’s credit information within the three-year period if requested by the insured. If an update request is made by the insured at least 45 days prior to the end of the policy term, any adjustment to the premium required by the update of the insured’s credit information shall take effect at the first renewal following the request for update of the insured’s credit information. If an update request is made by the insured within 45 days of the end of the policy term, the insurer<\/span> shall have the option of applying any adjustment to the premium required by the update of the insured’s credit information to the first renewal or the second renewal following the request for update of the insured’s credit information. An insurer<\/span> need not update the credit information more frequently than once every policy term. Notwithstanding the requirements of this subsection, no insurer<\/span> need obtain updated credit information if the insured has the most favorably priced tier or rate<\/span> based on his credit information. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the provisions of subdivision A 3 of § 38.2-1904<\/a>, if an insurer<\/span> issuing or delivering a policy of motor vehicle insurance, as defined in § 38.2-2212<\/a>, in this Commonwealth is unable to obtain credit information from a consumer report or when an insured or applicant has insufficient credit to produce an insurance credit score<\/span>, the insurer<\/span> shall underwrite, tier, or rate<\/span> the individual risk in one of the following ways: (i) as if the risk received a neutral or average insurance credit score<\/span>, as defined by the insurer<\/span>, (ii) by excluding the use of credit information as a factor and using only other underwriting, tiering, or rating criteria, or (iii) in accordance with established underwriting guidelines or filed tiering or rating rules. Any such established underwriting guidelines or filed tiering or rating rules shall consider other actuarially justified factors associated with the risk in addition to the inability to obtain credit information or the insufficiency of the credit information. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The following factors shall not be used as credit criteria or to determine an insurance credit score<\/span> for underwriting, tier placement, or rating purposes for a policy of motor vehicle insurance, as defined in \u00a7 38.2-2212<\/a>, issued or delivered in this Commonwealth: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Information that has been identified by the consumer reporting agency as disputed by the consumer and coded as such, if the use of such disputed information would result in an adverse action; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Information that has been identified by the consumer reporting agency as related to insurance inquiries or nonconsumer-initiated inquiries and coded as such; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Information that has been identified by the consumer reporting agency as related to collection accounts with a medical industry code; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Information that includes multiple lender inquiries, if coded by the consumer reporting agency as being from the home mortgage industry and made within 30 days of one another, unless only one inquiry is considered; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Information that includes multiple lender inquiries, if coded by the consumer reporting agency as being from the automobile lending industry and made within 30 days of one another, unless only one inquiry is considered; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Income, gender, address, zip code, ethnic group, race, color, religion, marital status, or nationality of the consumer; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The total available line of credit; however, an insurer<\/span> may consider the total amount of outstanding debt in relation to the total available line of credit. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> No insurer<\/span> shall take an adverse action against an applicant for a policy of motor vehicle insurance, as defined in § 38.2-2212<\/a>, issued or delivered in this Commonwealth, based on credit information, unless an insurer<\/span> obtains and uses a consumer report procured within 90 days from the date the policy is first written. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Notwithstanding anything to the contrary, for a policy of motor vehicle insurance, as defined in § 38.2-2212<\/a>, issued or delivered in this Commonwealth, an insurer<\/span> may, upon request, provide reasonable exceptions for an individual whose credit information is directly and adversely impacted by a catastrophic event, as determined by the insurer<\/span>, including catastrophic illness or injury or the death of a spouse or member of the same household. The insurer<\/span> may require reasonable documentation of the event prior to granting an exception. No insurer<\/span> shall be deemed out of compliance with its filed rules and rates<\/span><\/span> as a result of granting an exception pursuant to this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Upon the request of an insured or applicant with respect to a policy of motor vehicle insurance, as defined in § 38.2-2212<\/a>, issued or delivered in this Commonwealth, for a reevaluation as set forth in this section, the insurer<\/span> shall reevaluate the individual based on corrected credit information from a consumer reporting agency. If the reevaluation results in a lower premium, the lower premium shall be applied retroactively to the effective date of the current policy term, and the insurer<\/span> shall either refund or credit the amount to the insured. The insurer<\/span> may require reasonable documentation of the corrected information from the consumer reporting agency prior to the reevaluation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> An insurer<\/span> shall indemnify, defend, and hold agents harmless from and against all liability, fees, and costs arising out of or relating to the actions, errors, or omissions of an agent who obtains or uses credit information or insurance credit scores<\/span> for an insurer<\/span>, provided the agent follows the instructions or procedures established by the insurer<\/span> and complies with any applicable law<\/span>. Nothing in this subsection shall be construed to provide an applicant or insured with a cause of action<\/span> that does not exist in the absence of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> No consumer reporting agency shall provide or sell data or lists that include any information that in whole or in part was submitted in conjunction with an insurance inquiry about an individual’s credit information or a request for a consumer report or an insurance credit score<\/span>. Such information includes the expiration dates of an insurance policy or any other information that may identify time periods during which an individual’s insurance may expire and the terms and conditions of the individual’s insurance coverage. The restrictions provided in this subsection do not apply to data or lists the consumer reporting agency supplies to the insurance agent from whom information was received or the insurer<\/span> on whose behalf such agent acted. Nothing in this subsection shall be construed to restrict any insurer<\/span> from being able to obtain a claims history report or a motor vehicle report. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> For the purposes of this section, “insurance credit score<\/span>” means a number or rating that is derived from an algorithm, computer application, model, or other process that is based in whole or in part on credit information for the purposes of predicting the future insurance loss exposure of an individual applicant or insured for or under a policy of motor vehicle insurance, as defined in § 38.2-2212<\/a>, issued or delivered in this Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> The provisions of this section shall apply only to insurance purchased primarily for personal, family, or household purposes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSURANCE CREDIT SCORE DISCLOSURE; USE OF CREDIT INFORMATION (\u00a7 38.2-2234)\n\nA. Any insurer issuing or delivering a policy of motor vehicle insurance in this\nCommonwealth, as defined in \u00a7 38.2-2212, that uses credit information contained\nin a consumer report for underwriting, tier placement or rating an applicant or\ninsured shall meet the following requirements:\n\n 1. Disclose, either on the insurance application or at the time the insurance\n application is taken (i) that it shall obtain credit information in connection\n with such application, (ii) that the insured may request that his credit\n information be updated; and (iii) that, if the insured questions the accuracy\n of the credit information, the insurer will, upon request of the insured,\n reevaluate the insured based on corrected credit information from a consumer\n reporting agency. The disclosure may be made by the insurer or its agent. Such\n disclosure shall be either written or provided to an applicant in the same\n medium as the application for insurance. The insurer need not provide the\n disclosure required under this subsection to any insured on a renewal policy,\n if such insured has previously been provided a disclosure. Use of the\n following example disclosure constitutes compliance with this subsection:\n “In connection with this application for insurance, we shall review your\n credit report or obtain or use an insurance credit score based on the\n information contained in that credit report. We may use a third party in\n connection with the development of your insurance credit score. You may\n request that your credit information be updated and if you question the\n accuracy of the credit information, we will, upon your request, reevaluate you\n based on corrected credit information from a consumer reporting agency.”\n\n 2. If an insurer takes an adverse action, based in whole or in part, upon\n credit information, the insurer shall provide notice to the applicant or\n insured that the adverse action was based, in whole or in part, on credit\n information. Such notice shall also either include a statement advising the\n applicant or insured of the primary factors or characteristics that were used\n as the basis for the adverse action, or notify the applicant or insured that\n he may request such information. For the purposes of this section, adverse\n action means a denial, nonrenewal or cancellation of, an increase in any\n charge for or refusal to apply a discount, or placement in a less favorable\n tier, or a reduction or other adverse or unfavorable change in the terms of\n coverage or amount of, any insurance, existing or applied for, in connection\n with underwriting, tier placement or rating of insurance based on the\n applicant’s or insured’s credit information. Adverse action\n includes circumstances where due to his credit information the applicant or\n insured (i) receives a higher rate, (ii) is placed in a less favorable tier,\n and (iii) when there are multiple companies available within a group of\n insurers, receives coverage in a less favorably priced company of the group.\n Notice is required when the effect of the credit information would put the\n applicant or insured in a worse position than if the credit information had\n not been considered. In the case of renewals, the circumstances listed in\n clauses (i), (ii), and (iii) shall not be deemed adverse actions if, due to\n the insured’s credit information, the insured is not receiving a less\n favorable rate or placed in a less favorable tier or company than during the\n policy period immediately preceding renewal.\n\nB. If an insurer uses credit information from a consumer report for tier\nplacement or rating of its renewal business for a policy of motor vehicle\ninsurance, as defined in § 38.2-2212, issued or delivered in this\nCommonwealth the insurer shall be required to update the credit information at\nleast once every three years, provided, however, that the insurer shall be\nrequired to update an insured’s credit information within the three-year\nperiod if requested by the insured. If an update request is made by the insured\nat least 45 days prior to the end of the policy term, any adjustment to the\npremium required by the update of the insured’s credit information shall\ntake effect at the first renewal following the request for update of the\ninsured’s credit information. If an update request is made by the insured\nwithin 45 days of the end of the policy term, the insurer shall have the option\nof applying any adjustment to the premium required by the update of the\ninsured’s credit information to the first renewal or the second renewal\nfollowing the request for update of the insured’s credit information. An\ninsurer need not update the credit information more frequently than once every\npolicy term. Notwithstanding the requirements of this subsection, no insurer\nneed obtain updated credit information if the insured has the most favorably\npriced tier or rate based on his credit information.\n\nC. Notwithstanding the provisions of subdivision A 3 of § 38.2-1904, if an\ninsurer issuing or delivering a policy of motor vehicle insurance, as defined in\n§ 38.2-2212, in this Commonwealth is unable to obtain credit information\nfrom a consumer report or when an insured or applicant has insufficient credit\nto produce an insurance credit score, the insurer shall underwrite, tier, or\nrate the individual risk in one of the following ways: (i) as if the risk\nreceived a neutral or average insurance credit score, as defined by the insurer,\n(ii) by excluding the use of credit information as a factor and using only other\nunderwriting, tiering, or rating criteria, or (iii) in accordance with\nestablished underwriting guidelines or filed tiering or rating rules. Any such\nestablished underwriting guidelines or filed tiering or rating rules shall\nconsider other actuarially justified factors associated with the risk in\naddition to the inability to obtain credit information or the insufficiency of\nthe credit information.\n\nD. The following factors shall not be used as credit criteria or to determine an\ninsurance credit score for underwriting, tier placement, or rating purposes for\na policy of motor vehicle insurance, as defined in \u00a7 38.2-2212, issued or\ndelivered in this Commonwealth:\n\n 1. Information that has been identified by the consumer reporting agency as\n disputed by the consumer and coded as such, if the use of such disputed\n information would result in an adverse action;\n\n 2. Information that has been identified by the consumer reporting agency as\n related to insurance inquiries or nonconsumer-initiated inquiries and coded as\n such;\n\n 3. Information that has been identified by the consumer reporting agency as\n related to collection accounts with a medical industry code;\n\n 4. Information that includes multiple lender inquiries, if coded by the\n consumer reporting agency as being from the home mortgage industry and made\n within 30 days of one another, unless only one inquiry is considered;\n\n 5. Information that includes multiple lender inquiries, if coded by the\n consumer reporting agency as being from the automobile lending industry and\n made within 30 days of one another, unless only one inquiry is considered;\n\n 6. Income, gender, address, zip code, ethnic group, race, color, religion,\n marital status, or nationality of the consumer; or\n\n 7. The total available line of credit; however, an insurer may consider the\n total amount of outstanding debt in relation to the total available line of\n credit.\n\nE. No insurer shall take an adverse action against an applicant for a policy of\nmotor vehicle insurance, as defined in § 38.2-2212, issued or delivered in\nthis Commonwealth, based on credit information, unless an insurer obtains and\nuses a consumer report procured within 90 days from the date the policy is first\nwritten.\n\nF. Notwithstanding anything to the contrary, for a policy of motor vehicle\ninsurance, as defined in § 38.2-2212, issued or delivered in this\nCommonwealth, an insurer may, upon request, provide reasonable exceptions for an\nindividual whose credit information is directly and adversely impacted by a\ncatastrophic event, as determined by the insurer, including catastrophic illness\nor injury or the death of a spouse or member of the same household. The insurer\nmay require reasonable documentation of the event prior to granting an\nexception. No insurer shall be deemed out of compliance with its filed rules and\nrates as a result of granting an exception pursuant to this subsection.\n\nG. Upon the request of an insured or applicant with respect to a policy of motor\nvehicle insurance, as defined in § 38.2-2212, issued or delivered in this\nCommonwealth, for a reevaluation as set forth in this section, the insurer shall\nreevaluate the individual based on corrected credit information from a consumer\nreporting agency. If the reevaluation results in a lower premium, the lower\npremium shall be applied retroactively to the effective date of the current\npolicy term, and the insurer shall either refund or credit the amount to the\ninsured. The insurer may require reasonable documentation of the corrected\ninformation from the consumer reporting agency prior to the reevaluation.\n\nH. An insurer shall indemnify, defend, and hold agents harmless from and against\nall liability, fees, and costs arising out of or relating to the actions,\nerrors, or omissions of an agent who obtains or uses credit information or\ninsurance credit scores for an insurer, provided the agent follows the\ninstructions or procedures established by the insurer and complies with any\napplicable law. Nothing in this subsection shall be construed to provide an\napplicant or insured with a cause of action that does not exist in the absence\nof this subsection.\n\nI. No consumer reporting agency shall provide or sell data or lists that include\nany information that in whole or in part was submitted in conjunction with an\ninsurance inquiry about an individual’s credit information or a request\nfor a consumer report or an insurance credit score. Such information includes\nthe expiration dates of an insurance policy or any other information that may\nidentify time periods during which an individual’s insurance may expire\nand the terms and conditions of the individual’s insurance coverage. The\nrestrictions provided in this subsection do not apply to data or lists the\nconsumer reporting agency supplies to the insurance agent from whom information\nwas received or the insurer on whose behalf such agent acted. Nothing in this\nsubsection shall be construed to restrict any insurer from being able to obtain\na claims history report or a motor vehicle report.\n\nJ. For the purposes of this section, “insurance credit score” means\na number or rating that is derived from an algorithm, computer application,\nmodel, or other process that is based in whole or in part on credit information\nfor the purposes of predicting the future insurance loss exposure of an\nindividual applicant or insured for or under a policy of motor vehicle\ninsurance, as defined in § 38.2-2212, issued or delivered in this\nCommonwealth.\n\nK. The provisions of this section shall apply only to insurance purchased\nprimarily for personal, family, or household purposes.\n\nHISTORY: 2003, cc. 543, 553; 2019, c. 704.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}