                                 CODE OF VIRGINIA

POWERS OF COMMISSION; REPLACEMENT POLICIES (§ 38.2-2114.1)

Upon the verified petition of an insurer, where the petitioning insurer proposes
to replace all or substantially all of its policies in another insurer, the
Commission may relieve the insurer of the requirements of subsections B and C of
§ 38.2-2114 and of the mailing requirements of § 38.2-2113; provided the
insurer demonstrates to the satisfaction of the Commission that (i) the
replacement policy is underwritten by an affiliate insurer under common control
with the petitioning insurer; (ii) the replacement policy is substantially
similar to the existing policy with the petitioning insurer; (iii) the premium
charged for the replacement policy is no greater than that charged by the
petitioning insurer for the existing policy; and (iv) the replacement insurer is
duly licensed to transact the business of insurance in the Commonwealth of
Virginia. The replacement insurer shall retain a copy of any offer of
replacement for a period of one year from the expiration of any existing policy
that is not replaced. The Commission may further condition any such relief to
protect the best interests of the policyholder.

HISTORY: 1991, c. 292.