Virginia P&C Insurance Law & Regulation
The state portion of the Virginia property and casualty exam starts with who regulates insurance in Virginia and the consumer-protection rules that sit on top of the national coverage forms. This chapter covers the State Corporation Commission's Bureau of Insurance, unfair trade practices, and the cancellation and nonrenewal protections that apply to policies delivered in the Commonwealth.
The State Corporation Commission's Bureau of Insurance
Virginia regulates insurance through the State Corporation Commission (SCC) and its Bureau of Insurance (scc.virginia.gov). The Bureau issues, denies, suspends, and revokes producer licenses, reviews policy forms and rates, investigates consumer complaints, and enforces the insurance laws. On the exam, remember that the SCC's Bureau of Insurance, not the DMV or Secretary of the Commonwealth, licenses property and casualty producers.
Unfair Trade Practices and Producer Conduct
Virginia's unfair trade practices law prohibits misrepresenting policy terms, false or misleading advertising, unfair discrimination between similar risks, defamation of an insurer, coercion, and unfair claim settlement practices. Rebating, giving any part of the premium or commission or other valuable consideration as an inducement to buy, is prohibited. Premiums a producer collects are held in a fiduciary capacity and must not be commingled or converted. Violations can bring fines and license suspension or revocation by the Bureau of Insurance.
Cancellation and Nonrenewal Protections
Virginia law limits how and when an insurer may cancel or nonrenew personal auto and homeowners policies and requires advance written notice so the insured can find replacement coverage. Once a policy is past its initial underwriting period, cancellation is generally allowed only for defined reasons such as nonpayment of premium or fraud. The exact notice periods are set by statute and can change; confirm the current day-counts with the Virginia Bureau of Insurance before relying on a specific number.