                                 CODE OF VIRGINIA

NOTIFICATION TO COMMISSION OF TERMINATION; NOTICE TO AGENT; IMMUNITIES;
CONFIDENTIALITY; PENALTIES (§ 38.2-1834.1)

A. If an insurer or authorized representative of the insurer that terminates the
appointment, employment, contract, or other insurance business relationship with
an agent or other licensee under this chapter for a reason set forth in &#xA7;
38.2-1831 or the insurer has knowledge that the agent was found by a court,
government body, or legally authorized self-regulatory organization to have
engaged in any of the prohibited conduct described in &#xA7;&#xA7; 38.2-1356,
38.2-1363, 38.2-1831, or 38.2-1843, the insurer or authorized representative
shall certify in writing to the Commission within 30 calendar days following the
termination the reason for such termination. Upon the request of the Commission,
the insurer or authorized representative shall provide additional information,
documents, records, or other data pertaining to the termination or activity of
the agent or other licensee.

B. The insurer or the authorized representative of the insurer shall promptly
notify the Commission in a format acceptable to the Commission if, upon further
review or investigation, the insurer discovers additional information that would
have been reportable to the Commission in accordance with subsection A had the
insurer then known of its existence.

C. 1.  Within 15 calendar days after making the notification required by
subsections A and B, the insurer shall mail a copy of the notification to the
agent at his last known address pursuant to the insurer&#8217;s records. If the
agent is terminated for cause for any of the reasons listed in § 38.2-1831, the
insurer shall provide a copy of the notification to the agent at his last known
address by certified mail, return receipt requested, postage prepaid or by
overnight delivery using a nationally recognized carrier.

   2. Within 30 calendar days after the agent has received the original or
   additional notification, the agent may file written comments concerning the
   substance of the notification with the Commission in the form and manner
   required by the Commission. The agent shall, by the same means, simultaneously
   send a copy of the comments to the reporting insurer, and the comments shall
   become a part of the Commission&#8217;s file and accompany every copy of a
   report distributed or disclosed for any reason about the agent as permitted
   under subsection D.

D. 1.  In the absence of actual malice, an insurer, the authorized
representative of the insurer, a producer, the Commission, authorized
representatives of the Commission, the NAIC, its affiliates or subsidiaries, or
state, federal, and international law-enforcement authorities shall not be
subject to civil liability, and a civil cause of action of any nature shall not
arise against these entities or their respective agents or employees, as a
result of any statement or information required by or provided pursuant to this
section or any information relating to any statement that may be requested in
writing by the Commission, from an insurer or agent, or a statement by a
terminating insurer or agent to an insurer or agent limited solely and
exclusively to whether a termination for cause under subsection A was reported
to the Commission, provided that the propriety of any termination for cause
under subsection A is certified in writing, pursuant to subsection A, by an
officer or authorized representative of the insurer or agent terminating the
relationship.

   2. In any action brought against a person that may have immunity under
   subdivision 1 for making any statement required by this section or providing
   any information relating to any statement that may be requested by the
   Commission, the party bringing the action shall plead specifically in any
   allegation that subdivision 1 does not apply because the person making the
   statement or providing the information did so with actual malice.

   3. Subdivision 1 or 2 shall not abrogate or modify any existing statutory or
   common law privileges or immunities.

E. 1.  Any documents, materials, or other information in the control or
possession of the Commission that is furnished by an insurer, an agent, or an
employee thereof acting on behalf of the insurer or agent, or obtained by the
Commission in an investigation pursuant to this chapter shall be confidential by
law and privileged, shall not be subject to inspection or review by the general
public, shall not be subject to subpoena, and shall not be subject to discovery
or admissible in evidence in any private civil action. However, the Commission
is authorized to use the documents, materials, or other information in the
furtherance of any regulatory or legal action brought as a part of the
Commission&#8217;s duties.

   2. Neither the Commission nor any person who received documents, materials, or
   other information while acting under the authority of the Commission shall be
   permitted or required to testify in any private civil action concerning any
   confidential documents, materials, or information subject to subdivision 1.

   3. In order to assist in the performance of the Commission&#8217;s duties
   under this chapter, the Commission:
   				a. May share documents, material, or other information, including the
   confidential and privileged documents, materials, or information subject to
   subdivision 1, with other state, federal, and international regulatory
   agencies, with the NAIC, its affiliates or subsidiaries, and with local,
   state, federal, and international law-enforcement authorities, provided that
   the recipient agrees to maintain the confidentiality and privileged status of
   the document, material, or other information.
   				b. May receive documents, materials, or information, including otherwise
   confidential and privileged documents, materials, or information, from the
   NAIC, its affiliates or subsidiaries, and from regulatory and law-enforcement
   officials of other foreign or domestic jurisdictions, and shall maintain as
   confidential or privileged any document, material, or information received
   with notice or the understanding that it is confidential or privileged under
   the laws of the jurisdiction that is the source of the document, material, or
   information.

   4. No waiver of any applicable privilege or claim of confidentiality in the
   documents, materials, or information shall occur as a result of disclosure to
   the Commission under this section or as a result of sharing as authorized in
   subdivision 3.

   5. Nothing in this chapter shall prohibit the Commission from releasing final,
   adjudicated actions, including for cause terminations that are open to public
   inspection pursuant to Chapter 4 (&#xA7; 12.1-18 et seq.) of Title 12.1 to a
   database or other clearinghouse service maintained by the NAIC, its
   affiliates, or subsidiaries of the NAIC.

F. An insurer, the authorized representative of the insurer, or agent that fails
to report as required under the provisions of this section or that is found to
have reported with actual malice by a court of competent jurisdiction may, after
notice and an opportunity to be heard, have its license or certificate of
authority suspended or revoked and may be fined in accordance with Chapter 2
(&#xA7; 38.2-200 et seq.).

HISTORY: 2001, c. 706; 2002, c. 296; 2008, c. 303; 2025, c. 481.