                                 CODE OF VIRGINIA

CERTAIN CONDUCT BY INSURERS AND RATE SERVICE ORGANIZATIONS PROHIBITED (§
38.2-1916)

A. As used in this section, the word &#8220;insurer&#8221; includes two or more
insurers (i) under common management, (ii) under common controlling ownership or
(iii) under other common effective legal control and in fact engaged in joint or
cooperative underwriting, investment management, marketing, servicing or
administration of their business and affairs as insurers.

B. No insurer or rate service organization shall:

   1. Combine or conspire with any other person to monopolize or attempt to
   monopolize the business of insurance or any kind, subdivision or class of
   insurance;

   2. Agree with any other insurer or rate service organization to charge or
   adhere to any rate, although insurers and rate service organizations may
   continue to exchange statistical information;

   3. Make any agreement with any other insurer, rate service organization or
   other person to restrain trade unreasonably;

   4. Make any agreement with any other insurer, rate service organization or
   other person that may substantially lessen competition in any kind,
   subdivision or class of insurance; or

   5. Make any agreement with any other insurer or rate service organization to
   refuse to deal with any person in connection with the sale of insurance.

C. No insurer may acquire or retain any capital stock or assets of, or have any
common management with, any other insurer if such acquisition, retention or
common management substantially lessens competition in the business of insurance
or any kind, subdivision or class thereof.

D. No rate service organization, or any of its members or subscribers, shall
interfere with the right of any insurer to make its rates independently of the
rate service organization.

E. No rate service organization shall have or adopt any rule, exact any
agreement, or engage in any program that would require any member, subscriber or
other insurer to utilize some or all of its services, or to adhere to its rates,
rating plans, rating systems, underwriting rules, or policy forms, or to prevent
any insurer from acting independently. Notwithstanding the foregoing, with
respect to insurance defined in &#xA7; 38.2-119, a rate service organization may
develop uniform (i) policies, (ii) classification systems, (iii) statistical
plans, (iv) experience rating plans, and (v) manual rules which shall be adhered
to by its members.

HISTORY: 1976, c. 279, § 38.1-279.44:1; 1986, c. 562; 1990, c. 596; 1993, c.
985.