                                 CODE OF VIRGINIA

GROUNDS AND PROCEDURE FOR CANCELLATION OF OR REFUSAL TO RENEW MOTOR VEHICLE
INSURANCE POLICIES; REVIEW BY COMMISSIONER (§ 38.2-2212)

A. As used in this section:
			&#8220;Cancellation&#8221; or &#8220;to cancel&#8221; means a termination of
a policy during the policy period.
			&#8220;Insurer&#8221; means any insurance company, association, or exchange
licensed to transact motor vehicle insurance in the Commonwealth.
			&#8220;Policy of motor vehicle insurance&#8221; or &#8220;policy&#8221; means
a policy or contract for bodily injury or property damage liability insurance
issued or delivered in this Commonwealth covering liability arising from the
ownership, maintenance, or use of any motor vehicle, insuring as the named
insured one individual or spouses who are residents of the same household, and
under which the insured vehicle designated in the policy is either:

   1. A motor vehicle of a private passenger, station wagon, or motorcycle type
   that is not used commercially, rented to others, or used as a public or livery
   conveyance where the term &#8220;public or livery conveyance&#8221; does not
   include car pools, or

   2. Any other four-wheel motor vehicle which is not used in the occupation,
   profession, or business, other than farming, of the insured, or as a public or
   livery conveyance, or rented to others. The term &#8220;policy of motor
   vehicle insurance&#8221; or &#8220;policy&#8221; does not include (i) any
   policy issued through the Virginia Automobile Insurance Plan, (ii) any policy
   covering the operation of a garage, sales agency, repair shop, service
   station, or public parking place, (iii) any policy providing insurance only on
   an excess basis, or (iv) any other contract providing insurance to the named
   insured even though the contract may incidentally provide insurance on motor
   vehicles.
   				&#8220;Renewal&#8221; or &#8220;to renew&#8221; means (i) the issuance and
   delivery by an insurer of a policy superseding at the end of the policy period
   a policy previously issued and delivered by the same insurer, providing types
   and limits of coverage at least equal to those contained in the policy being
   superseded, or (ii) the issuance and delivery of a certificate or notice
   extending the term of a policy beyond its policy period or term with types and
   limits of coverage at least equal to those contained in the policy. Each
   renewal shall conform with the requirements of the manual rules and rating
   program currently filed by the insurer with the Commission. Except as provided
   in subsection K, any policy with a policy period or term of less than 12
   months or any policy with no fixed expiration date shall for the purpose of
   this section be considered as if written for successive policy periods or
   terms of six months from the original effective date.

B. This section shall apply only to that portion of a policy of motor vehicle
insurance providing the coverage required by &#xA7;&#xA7; 38.2-2204, 38.2-2205,
and 38.2-2206.

C. 1. No insurer shall refuse to renew a motor vehicle insurance policy solely
because of any one or more of the following factors:
			a. Age;
			b. Sex;
			c. Residence;
			d. Race;
			e. Color;
			f. Creed;
			g. National origin;
			h. Ancestry;
			i. Marital status;
			j. Sexual orientation;
			k. Gender identity;
			l. Lawful occupation, including the military service;
			m. Lack of driving experience, or number of years driving experience;
			n. Lack of supporting business or lack of the potential for acquiring such
business;
			o. One or more accidents or violations that occurred more than 48 months
immediately preceding the upcoming anniversary date;
			p. One or more claims submitted under the uninsured motorists coverage of the
policy where the uninsured motorist is known or there is physical evidence of
contact;
			q. A single claim by a single insured submitted under the medical expense
coverage due to an accident for which the insured was neither wholly nor
partially at fault;
			r. One or more claims submitted under the comprehensive or towing coverages.
However, nothing in this section shall prohibit an insurer from modifying or
refusing to renew the comprehensive or towing coverages at the time of renewal
of the policy on the basis of one or more claims submitted by an insured under
those coverages, provided that the insurer shall mail or deliver to the insured
at the address shown in the policy, or deliver electronically to the address
provided by the named insured, written notice of any such change in coverage at
least 45 days prior to the renewal;
			s. Two or fewer motor vehicle accidents within a three-year period unless the
accident was caused either wholly or partially by the named insured, a resident
of the same household, or other customary operator;
			t. Credit information contained in a &#8220;consumer report,&#8221; as
defined in the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.,
bearing on a natural person&#8217;s creditworthiness, credit standing or credit
capacity. If credit information is used, in part, as the basis for the
nonrenewal, such credit information shall be based on a consumer report procured
within 120 days from the effective date of the nonrenewal. The provisions of
this subdivision shall apply only to insurance purchased primarily for personal,
family, or household purposes;
			u. The refusal of a motor vehicle owner as defined in § 46.2-1088.6 to
provide access to recorded data from a recording device as defined in §
46.2-1088.6; or
			v. The status of the person as a foster care provider or a person in foster
care.

   2. Nothing in this section shall require any insurer to renew a policy for an
   insured where the insured&#8217;s occupation has changed so as to materially
   increase the risk. Nothing contained in subdivisions 1 p, q, and r shall
   prohibit an insurer from refusing to renew a policy where a claim is false or
   fraudulent. Nothing in this section prohibits any insurer from setting rates
   in accordance with relevant actuarial data.

D. No insurer shall cancel a policy except for one or more of the following
reasons:

   1. The named insured or any other operator who either resides in the same
   household or customarily operates a motor vehicle insured under the policy has
   had his driving privileges suspended or revoked during the policy period or,
   if the policy is a renewal, during its policy period or the 90 days
   immediately preceding the last effective date.

   2. The named insured fails to pay the premium for the policy or any
   installment of the premium, whether payable to the insurer or its agent either
   directly or indirectly under any premium finance plan or extension of credit.

   3. The named insured or his duly constituted attorney-in-fact has notified the
   insurer of a change in the insured&#8217;s legal residence to a state other
   than Virginia and the insured vehicle will be principally garaged in the new
   state of legal residence.

E. No cancellation or refusal to renew by an insurer of a policy of motor
vehicle insurance shall be effective unless the insurer delivers or mails to the
named insured at the address shown in the policy a written notice of the
cancellation or refusal to renew, or the insurer delivers such notice
electronically to the address provided by the named insured. The notice shall:

   1. Be in a type size authorized under &#xA7; 38.2-311.

   2. State the effective date of the cancellation or refusal to renew. The
   effective date of cancellation or refusal to renew shall be at least 45 days
   after mailing or delivering to the insured the notice of cancellation or
   notice of refusal to renew. However, when the policy is being canceled or not
   renewed for the reason set forth in subdivision D 2 the effective date may be
   less than 45 days but at least 15 days from the date of mailing or delivery.

   3. State the specific reason of the insurer for cancellation or refusal to
   renew and provide for the notification required by &#xA7;&#xA7; 38.2-608,
   38.2-609, and subsection B of &#xA7; 38.2-610. However, those notification
   requirements shall not apply when the policy is being canceled or not renewed
   for the reason set forth in subdivision D 2.

   4. Inform the insured of his right to request in writing within 15 days of the
   receipt of the notice that the Commissioner review the action of the insurer.
   				The notice of cancellation or refusal to renew shall contain the following
   statement to inform the insured of such right:
   				IMPORTANT NOTICE
   				Within 15 days of receiving this notice, you or your attorney may request
   in writing that the Commissioner of Insurance review this action to determine
   whether the insurer has complied with Virginia laws in canceling or
   nonrenewing your policy. If this insurer has failed to comply with the
   cancellation or nonrenewal laws, the Commissioner may require that your policy
   be reinstated. However, the Commissioner is prohibited from making
   underwriting judgments. If this insurer has complied with the cancellation or
   nonrenewal laws, the Commissioner does not have the authority to overturn this
   action.

   5. Inform the insured of the possible availability of other insurance which
   may be obtained through his agent, through another insurer, or through the
   Virginia Automobile Insurance Plan.

   6. If sent by mail or delivered electronically, comply with the provisions of
   &#xA7; 38.2-2208.
   				Nothing in this subsection prohibits any insurer or agent from including
   in the notice of cancellation or refusal to renew, any additional disclosure
   statements required by state or federal laws, or any additional information
   relating to the availability of other insurance.

F. Nothing in this section shall apply:

   1. If the insurer or its agent acting on behalf of the insurer has manifested
   its willingness to renew by issuing or offering to issue a renewal policy,
   certificate, or other evidence of renewal, or has manifested its willingness
   to renew in writing to the insured. The written manifestation shall include
   the name of a proposed insurer, the expiration date of the policy, the type of
   insurance coverage, and information regarding the estimated renewal premium.
   The insurer shall retain a copy of each written manifestation for a period of
   at least one year from the expiration date of any policy that is not renewed;

   2. If the named insured, or his duly constituted attorney-in-fact, has
   notified the insurer or its agent orally, or in writing, if the insurer
   requires such notification to be in writing, that he wishes the policy to be
   canceled or that he does not wish the policy to be renewed, or if prior to the
   date of expiration he fails to accept the offer of the insurer to renew the
   policy;

   3. To any motor vehicle insurance policy which has been in effect less than 60
   days when the termination notice is mailed or delivered to the insured, unless
   it is a renewal policy; or

   4. If an affiliated insurer has manifested its willingness to provide coverage
   at a lower premium than would have been charged for the same exposures on the
   expiring policy. The affiliated insurer shall manifest its willingness to
   provide coverage by issuing a policy with the types and limits of coverage at
   least equal to those contained in the expiring policy unless the named insured
   has requested a change in coverage or limits. When such offer is made by an
   affiliated insurer, an offer of renewal shall not be required of the insurer
   of the expiring policy, and the policy issued by the affiliated insurer shall
   be deemed to be a renewal policy.

G. There shall be no liability on the part of and no cause of action of any
nature shall arise against the Commissioner or his subordinates; any insurer,
its authorized representatives, its agents, or its employees; or any person
furnishing to the insurer information as to reasons for cancellation or refusal
to renew, for any statement made by any of them in complying with this section
or for providing information pertaining to the cancellation or refusal to renew.
For the purposes of this section, no insurer shall be required to furnish a
notice of cancellation or refusal to renew to anyone other than the named
insured, any person designated by the named insured, or any other person to whom
such notice is required to be given by the terms of the policy and the
Commissioner.

H. Within 15 days of receipt of the notice of cancellation or refusal to renew,
any insured or his attorney shall be entitled to request in writing to the
Commissioner that he review the action of the insurer in canceling or refusing
to renew the policy of the insured. Upon receipt of the request, the
Commissioner shall promptly begin a review to determine whether the
insurer&#8217;s cancellation or refusal to renew complies with the requirements
of this section and of &#xA7; 38.2-2208 if the notice was sent by mail or
delivered electronically. The policy shall remain in full force and effect
during the pendency of the review by the Commissioner except where the
cancellation or refusal to renew is for the reason set forth in subdivision D 2,
in which case the policy shall terminate as of the effective date stated in the
notice. Where the Commissioner finds from the review that the cancellation or
refusal to renew has not complied with the requirements of this section or of
&#xA7; 38.2-2208, he shall immediately notify the insurer, the insured and any
other person to whom such notice was required to be given by the terms of the
policy that the cancellation or refusal to renew is not effective. Nothing in
this section authorizes the Commissioner to substitute his judgment as to
underwriting for that of the insurer. Where the Commissioner finds in favor of
the insured, the Commission in its discretion may award the insured reasonable
attorney fees.

I. Each insurer shall maintain for at least one year, records of cancellation
and refusal to renew and copies of every notice or statement referred to in
subsection E that it sends to any of its insureds.

J. The provisions of this section shall not apply to any insurer that limits the
issuance of policies of motor vehicle liability insurance to one class or group
of persons engaged in any one particular profession, trade, occupation, or
business. Nothing in this section requires an insurer to renew a policy of motor
vehicle insurance if the insured does not conform to the occupational or
membership requirements of an insurer who limits its writings to an occupation
or membership of an organization. No insurer is required to renew a policy if
the insured becomes a nonresident of Virginia.

K. Notwithstanding any other provision of this section, a motor vehicle
insurance policy with a policy period or term of five months or less may expire
at its expiration date when the insurer has manifested in writing its
willingness to renew the policy for at least 30 days and has mailed or delivered
the written manifestation to the insured at least 15 days before the expiration
date of the policy. The written manifestation shall include the name of the
proposed insurer, the expiration date of the policy, the type of insurance
coverage, and the estimated renewal premium. The insurer shall retain a copy of
the written manifestation for at least one year from the expiration date of any
policy that is not renewed.

HISTORY: 1970, c. 564, § 38.1-381.5; 1972, c. 273; 1975, cc. 63, 319; 1978, c.
441; 1982, c. 482; 1983, cc. 125, 371; 1984, c. 340; 1986, c. 562; 1988, c. 655;
1990, c. 960; 1991, c. 116; 1995, c. 3; 1996, cc. 206, 239; 1998, cc. 141, 142;
2003, cc. 543, 553; 2006, cc. 851, 889; 2008, cc. 58, 221; 2009, c. 215; 2013,
c. 257; 2019, c. 334; 2020, cc. 900, 1137, 1227, 1246.