A. No home protection contract shall be issued or used in this Commonwealth unless it has been filed with and approved by the Commission.
B. No home protection contract shall be issued in this Commonwealth unless it:
1. Is written in simple and readable words with common meanings and is understandable without special insurance knowledge or training;
2. Specifically sets forth: a. The services to be performed by the home protection company and the terms and conditions of the performance; b. Any service fee or deductible amount applicable per claim or per occurrence; c. Each of the systems, appliances, and structural components covered by the contract; d. All exclusions and limitations respecting the extent of coverage; e. The period during which the contract will remain in effect and the cancellation provision; f. All limitations regarding the performance of services, including any restrictions as to the time periods when services will be performed;
3. Provides for the initiation of covered services contracted for upon telephonic request without first requiring the filing of written claim forms or written applications; and
4. Provides for the initiation of covered services contracted for by or under the direction of the home protection company within seventy-two hours of the request for the service by the contract holder, and provides for the completion of the services as soon as reasonably possible. For malfunctions of furnace or heating systems during the winter months, the contract must provide for the initiation of services immediately.
C. Every application for or agreement to purchase a home protection contract shall include a statement that the purchase of the contract is not mandatory and may be waived, and shall include a statement of the premium.
D. 1. Chapter 20 (§ 38.2-2000 et seq.) of this title shall apply to the rates charged by home protection companies until such time as the Commission determines, after proper notice and hearing, that sufficient competition exists in the home protection industry to justify its regulation under Chapter 19 (§ 38.2-1900 et seq.) of this title. Upon this determination, Chapter 19 of this title shall apply to the rates charged by home protection companies.
2. No home protection company shall make or issue a contract except in accordance with the filings that are in effect for that company. No home protection company or any of its representatives shall charge or receive any fee, compensation or consideration for the contract that is not included in the rate in effect for that company.
3. The rates charged shall be based on sound actuarial principles and shall not be excessive, inadequate, or unfairly discriminatory as defined in § 38.2-1904.