                                 CODE OF VIRGINIA

PERSON SOLICITING INSURANCE DEEMED AGENT OF INSURER; PROHIBITION AGAINST
MISREPRESENTING AGENCY RELATIONSHIP (§ 38.2-1801)

A. A licensed agent shall be held to be the agent of the insurer that issued the
insurance sold, solicited, or negotiated by such agent in any controversy
between the insured or his beneficiary and the insurer. No licensed agent or any
other person shall claim to be a representative of, authorized agent of, agent
of, or other term implying an appointed relationship with a particular insurer
unless such agent has become an appointed agent of that insurer. For the purpose
of notice of claim or suit, the agent or producer of record shall be deemed to
be the agent of the insurer. In the case of policies of life insurance, accident
and sickness insurance, annuities and variable annuities, such notice shall be
given to the insurer at its home office as shown in the policy of insurance.

B. A premium payment made by an insured to an agent, whether appointed by an
insurer or not, or to a surplus lines broker, where the insurer or its appointed
agent acknowledged specific insurance for a specific policy period by the
issuance of a policy, written binder, or other contract of temporary insurance,
whether new or renewal, shall be considered payment to the insurer, and such
insurer shall be liable to the insured for (i) any covered losses under the
insurance and (ii) the return to the insured of any unearned premium amount due
the insured except as provided in subsection D of &#xA7; 38.2-1806.

C. Except as provided in subsection D of &#xA7; 38.2-1806, where premiums for
the issuance of a policy or endorsement have been financed by an insurance
premium finance company and payment and evidence of financing for such policy or
endorsement have been received by the insurer or its appointed agent, the
insurer shall be liable for the return to the insurance premium finance company
of any unearned premium due the insurance premium finance company.

HISTORY: Code 1950, § 38.1-292; 1952, c. 317; 1979, c. 513, § 38.1-327.2;
1986, c. 562; 1987, c. 521; 1988, c. 229; 1989, c. 543; 1993, c. 145; 2001, c.
706.