Virginia Law

Article 16. Assignment of Insurance Risks.

Every person who has been unable to obtain a motor vehicle liability policy shall have the right to apply to the State Corporation Commission to have his risk assigned to an insurance carrier licensed to write and writing motor vehicle liability insurance in the Commonwealth and the insurance carrier, whether a stock or mutual company, reciprocal, or interinsurance exchange, or other type or form of insurance organization, as provided in this article shall issue a motor vehicle liability policy which will meet at least the minimum requirements for establishing financial responsibility as provided in this chapter, and in addition shall provide, at the option of the insured, reasonable motor vehicle physical damage and medical payments coverages, (both as defined in § 38.2-124) in the same policy.

Every person who has otherwise obtained a motor vehicle liability insurance policy, or who has been afforded motor vehicle liability insurance under the provisions of § 38.2-2015, but who was not afforded motor vehicle medical payments insurance or motor vehicle physical damage insurance in the same policy, or who was not afforded such coverages under the provisions of that section, shall have the right to apply to the Commission to have his risk assigned to an insurance carrier, as provided above, licensed to write and writing either or both coverages, and the insurance carrier shall issue a policy providing the coverage or coverages applied for.

Code 1950, § 46-486; 1958, c. 541, § 46.1-497; 1972, c. 842; 1974, c. 88; 1989, c. 727.

Once an assigned risk policy has been issued to an insured, every insurer licensed in the Commonwealth issuing or delivering any policy or contract of bodily injury liability insurance, or of property damage liability insurance, covering liability arising from the ownership, maintenance, or use of any motor vehicle shall provide on request of the insured, on payment of premium established by law for the coverage (i) to the named insured and, while resident of the named insured's household, the spouse and relatives of the named insured while occupying a motor vehicle or if struck by a motor vehicle while not occupying a motor vehicle; and (ii) to persons occupying the insured motor vehicle, the following health care and disability benefit for each accident:

1. Medical and chiropractic payments (accident insurance as defined in Article 2, § 38.2-101 et seq. of Chapter 1 of Title 38.2) coverages incurred within two years after the date of the accident, up to $2,000 per person;

2. If the person is usually engaged in a remunerative occupation, an amount equal to the loss of income incurred within one year after the date of the accident resulting from injuries received in the accident up to $100 per week during the period from the first work day lost as a result of the accident up to the date on which the person is able to return to his usual occupation and for a period not to exceed fifty-two weeks or any part thereof; and

3. The insured has the option of purchasing either or both of the coverages set forth in subdivisions 1 and 2 of this section.

1972, c. 859, § 46.1-497.1; 1973, c. 294; 1977, c. 112; 1982, c. 450; 1989, c. 727.

The Commission may make reasonable regulations for the assignment of risks to insurance carriers.

It shall establish rate classifications, rating schedules, rates, and regulations to be used by insurance carriers issuing assigned risk, policies of motor vehicle liability, physical damage, and medical payments insurance in accordance with this chapter as appear to it to be proper.

In the establishment of rate classifications, rating schedules, rates, and regulations, it shall be guided by the principles and practices which have been established under its statutory authority to regulate motor vehicle liability, physical damage, and medical payments insurance rates and it may act in conformity with its statutory discretionary authority in such matters.

Code 1950, § 46-487; 1958, c. 541, § 46.1-498; 1972, c. 842; 1989, c. 727.

The Commission may, in its discretion, after reviewing all information pertaining to the applicant or policyholder available from its records, the records of the Department or from other sources:

1. Refuse to assign an application;

2. Approve the rejection of an application by an insurance carrier;

3. Approve the cancellation of a policy of motor vehicle liability, physical damage, and medical payments insurance by an insurance carrier; or

4. Refuse to approve the renewal or the reassignment of an expiring policy.

Code 1950, § 46-488; 1958, c. 541, § 46.1-499; 1972, c. 842; 1989, c. 727.

Any information filed with the Commission by an insurance carrier in connection with an assigned risk shall be confidential and solely for the information of the Commission and its staff and shall not be disclosed to any person, including an applicant, policyholder, and any other insurance carrier.

Code 1950, § 46-489; 1958, c. 541, § 46.1-500; 1989, c. 727.

A. The Commission shall not be required to disclose to any person, including the applicant or policyholder, its reasons for:

1. Refusing to assign an application;

2. Approving the rejection of an application by an insurance carrier;

3. Approving the cancellation of a policy of motor vehicle liability, physical damage, and medical payments insurance by an insurance carrier; or

4. Refusing to approve the renewal or the reassignment of an expiring policy.

B. The Commission or anyone acting for it shall not be held liable for any act or omission in connection with the administration of the duties imposed upon it by the provisions of this chapter, except upon proof of actual malfeasance.

Code 1950, § 46-490; 1958, c. 541, § 46.1-501; 1972, c. 842; 1989, c. 727.

The provisions of this chapter relevant to assignment of risks shall be available to nonresidents who are unable to obtain a policy of motor vehicle liability, physical damage, and medical payments insurance with respect only to motor vehicles registered and used in the Commonwealth.

Code 1950, § 46-491; 1958, c. 541, § 46.1-502; 1972, c. 842; 1989, c. 727.

Notwithstanding the provisions of § 46.2-366, the provisions of this chapter relating to assignment of risks shall be available to carriers by motor vehicle who are required by law to carry public liability and property damage insurance for the protection of the public.

Code 1950, § 46-491.1; 1954, c. 345; 1958, c. 541, § 46.1-503; 1989, c. 727.