                                 CODE OF VIRGINIA

RENEWABILITY OF COVERAGE (§ 38.2-3514.2)

A. Every individual policy, subscription contract or plan delivered, issued for
delivery or renewal in this Commonwealth providing benefits to or on behalf of
an individual shall provide for the renewability of such coverage at the sole
option of the insured, policyholder, subscriber, or enrollee. The insurer,
health services plan or health maintenance organization issuing such policy,
subscription contract or plan shall be permitted to refuse to renew the policy,
subscription contract or plan only for one or more of the following reasons:

   1. Nonpayment of the required premiums by the insured, policyholder,
   subscriber, or enrollee, or such individual&#8217;s representative;

   2. In the event that the policy, subscription contract or plan contains a
   provision requiring the use of network providers, a documented pattern of
   abuse or misuse of such provision by the insured, policyholder, subscriber, or
   enrollee, continuing for a period of no less than two years;

   3. Subject to the time limits contained in subdivision 2 of &#xA7; 38.2-3503
   or in regulations adopted by the Commission governing the practices of health
   maintenance organizations, for fraud or material misrepresentation by the
   individual, with respect to his application for coverage;

   4. Eligibility of an individual insured for Medicare, provided that such
   coverage may not terminate with respect to other individuals insured under the
   same policy, subscription contract or plan and who are not eligible for
   Medicare; and

   5. The insured, subscriber, or enrollee has not maintained a legal residence
   in the service area of the insurer, health services plan or health maintenance
   organization for a period of at least six months.

B. This section shall not apply to the following insurance policies,
subscription contracts or plans:

   1. Short-term travel;

   2. Accident-only;

   3. Disability income;

   4. Limited or specified disease contracts;

   5. Long-term care insurance;

   6. Short-term nonrenewable policies or contracts of not more than six
   months&#8217; duration which are subject to no medical underwriting or minimal
   underwriting; and

   7. Individual health insurance coverage as defined in subsection B of &#xA7;
   38.2-3431.

HISTORY: 1996, c. 550; 1998, c. 24.