                                 CODE OF VIRGINIA

DISCLOSURE OF EXTENT AND ELEMENTS OF COVERAGE (§ 38.2-3424)

A. Any agent, agency, administrator, or other person that advertises, sells,
transacts, or administers coverage for health care services in this Commonwealth
where that coverage is provided by any person subject to the provisions of this
article shall inform any purchaser, prospective purchaser, or covered person of
(i) the lack of insurance or other coverage, unless that coverage is fully
insured or otherwise fully covered by an admitted life insurer, accident and
sickness insurer, health services plan, dental or optometric services plan, or
health maintenance organization and (ii) if the coverage is fully insured or
otherwise fully covered, the terms, coverages, limits, and deductibles including
the amount of &#8220;stop-loss&#8221; insurance in effect.

B. No person, including an administrator, insurer, agent, or affiliate of an
insurer shall make, publish, disseminate, circulate, or place before the public,
or cause, directly or indirectly, to be made, published, disseminated,
circulated, or placed before the public, in any newspaper, magazine or other
publication, or in the form of a notice, circular, pamphlet, letter or poster,
or over any radio station or television station, or in any other way, any
advertisement, announcement, or statement soliciting membership, offering
coverage, or evidencing coverage in any health care plan or arrangement which is
subject to regulation by the Commission under this article and not otherwise
regulated by this title, unless such advertisement, announcement, or statement
contains the following disclosure:
			Your plan of coverage is not protected under the Virginia Life, Accident and
Sickness Insurance Guaranty Association Act. Therefore:

   1. In the event of an insolvency of your plan, you may be unable to collect
   any amount you are owed for covered claims, regardless of the coverage
   provided under the plan;

   2. The payment of premiums into your plan does not guarantee payment of claims
   under your plan, regardless of the coverage provided under the plan.
   				When such disclosure is contained in print, it shall be no smaller than
   boldfaced ten-point type.

HISTORY: 1983, c. 417, § 38.1-43.11; 1986, c. 562; 1990, c. 477.