                                 CODE OF VIRGINIA

DISCLOSURE REQUIRED (§ 38.2-514.1)

A. Any agent selling, soliciting, or negotiating a contract of insurance in
conjunction with any automobile club service agreement or in conjunction with
any accidental death and dismemberment policy shall provide to the applicant, at
the time of application, a written disclosure which shall contain:

   1. The name or type of each policy or contract of insurance and automobile
   club service agreement for which application has been made;

   2. The premium quotation associated with each policy or contract of insurance
   and the cost of any dues, assessments or periodic payments of money associated
   with each automobile club service agreement for which application has been
   made; and

   3. A statement that the applicant has elected to purchase such policies,
   contracts, or automobile club service agreements.

B. The disclosure required by this section shall be signed and dated by the
agent and the applicant. A copy of the signed disclosure shall be given to the
applicant at the time of application. If the application is made by telephonic
or electronic request, a copy of the disclosure shall be signed and dated by the
agent and shall be mailed to the applicant within ten calendar days of the
application.

C. The provisions of this section shall apply only to the original issuance of
policies or contracts of insurance and automobile club service agreements
covering personal, family, or household needs rather than business or
professional needs. As used in this section, an automobile club service
agreement is an agreement issued by an automobile club as defined in subsection
E.

D. Notwithstanding subsections A, B and C, this section shall not apply to the
sale of group insurance.

E. As used in this section, &#8220;automobile club&#8221; means a legal entity
that, in consideration of dues, assessments, or periodic payments of money,
promises its members or subscribers to assist them in matters relating to motor
travel or the operation, use, or maintenance of a motor vehicle by supplying
services that may include, but are not limited to, towing service, emergency
road service, indemnification service, guaranteed arrest bond certificate
service, discount service, financial service, theft service, map service, or
touring service.

HISTORY: 1996, c. 473; 2001, c. 706; 2016, c. 250; 2017, c. 653.