                                 CODE OF VIRGINIA

HOME PROTECTION CONTRACTS; FILING; FORM AND CONTENTS; APPLICATION OR AGREEMENT
TO PURCHASE; REGULATION OF RATES AND CHARGES (§ 38.2-2608)

A. No home protection contract shall be issued or used in this Commonwealth
unless it has been filed with and approved by the Commission.

B. No home protection contract shall be issued in this Commonwealth unless it:

   1. Is written in simple and readable words with common meanings and is
   understandable without special insurance knowledge or training;

   2. Specifically sets forth:
   				a. The services to be performed by the home protection company and the
   terms and conditions of the performance;
   				b. Any service fee or deductible amount applicable per claim or per
   occurrence;
   				c. Each of the systems, appliances, and structural components covered by
   the contract;
   				d. All exclusions and limitations respecting the extent of coverage;
   				e. The period during which the contract will remain in effect and the
   cancellation provision;
   				f. All limitations regarding the performance of services, including any
   restrictions as to the time periods when services will be performed;

   3. Provides for the initiation of covered services contracted for upon
   telephonic request without first requiring the filing of written claim forms
   or written applications; and

   4. Provides for the initiation of covered services contracted for by or under
   the direction of the home protection company within seventy-two hours of the
   request for the service by the contract holder, and provides for the
   completion of the services as soon as reasonably possible. For malfunctions of
   furnace or heating systems during the winter months, the contract must provide
   for the initiation of services immediately.

C. Every application for or agreement to purchase a home protection contract
shall include a statement that the purchase of the contract is not mandatory and
may be waived, and shall include a statement of the premium.

D. 1. Chapter 20 (§ 38.2-2000 et seq.) of this title shall apply to the rates
charged by home protection companies until such time as the Commission
determines, after proper notice and hearing, that sufficient competition exists
in the home protection industry to justify its regulation under Chapter 19 (§
38.2-1900 et seq.) of this title. Upon this determination, Chapter 19 of this
title shall apply to the rates charged by home protection companies.

   2. No home protection company shall make or issue a contract except in
   accordance with the filings that are in effect for that company. No home
   protection company or any of its representatives shall charge or receive any
   fee, compensation or consideration for the contract that is not included in
   the rate in effect for that company.

   3. The rates charged shall be based on sound actuarial principles and shall
   not be excessive, inadequate, or unfairly discriminatory as defined in &#xA7;
   38.2-1904.

HISTORY: 1981, c. 530, § 38.1-938; 1984, c. 640; 1986, c. 562.