2006 Code of Virginia § 38.2-1906 - Filing and use of rates

38.2-1906. Filing and use of rates.

A. Each authorized insurer subject to the provisions of this chapter shallfile with the Commission all rates and supplementary rate information and allchanges and amendments to the rates and supplementary rate information madeby it for use in the Commonwealth on or before the date they become effective.

In cases where the Commission has made a determination pursuant to 38.2-1912 that competition is not an effective regulator of rates for a lineor subclassification of insurance, such rates, supplementary rateinformation, changes and amendments to rates and supplementary rateinformation for that line or subclassification shall be filed in accordancewith and shall be subject to the provisions of 38.2-1912.

B. Each rate service organization licensed under 38.2-1914 that has beendesignated by an insurer for the filing of prospective loss costs orsupplementary rate information under 38.2-1908 shall file with theCommission all prospective loss costs or supplementary rate information andall changes and amendments to the prospective loss costs or supplementaryrate information made by it for use in the Commonwealth on or before the datethey become effective. Prospective loss costs and supplementary rateinformation for insurance defined in 38.2-119 must comply with theprovisions of 38.2-1912.1 prior to being used by an insurer in a filingestablishing or changing its rate.

C. Prospective loss costs filings and supplementary rate information filed byrate service organizations shall not contain final rates, minimum premiums,or minimum premium rules.

D. No insurer shall make or issue an insurance contract or policy of a classto which this chapter applies, except in accordance with the rate andsupplementary rate information filings that are in effect for the insurer.

E. For insurance as defined in 38.2-119 any authorized insurer that doesnot rely on prospective loss costs or supplementary rate information filed bya rate service organization shall comply with the filing provisions of 38.2-1912 as if competition was not an effective regulator of rates.

F. Except with respect to workers' compensation and employers' liabilityinsurance as defined in 38.2-119, and notwithstanding the provisions ofsubdivision A 3 of 38.2-1904, nothing shall prohibit an insurer from filingwith the Commission any rate or supplementary rate information that allowsthe insurer to limit for its renewal policies any rate increase that wouldotherwise be applicable to such policies. Such limitation shall apply for theperiod of time specified in the insurer's filing. Nothing shall prohibit suchlimitation from applying to policies acquired by an insurer from anotherinsurer pursuant to a written agreement of acquisition, merger, or sale thattransfers all or part of the other insurer's book of business.

(1973, c. 504, 38.1-279.34; 1976, c. 278; 1986, c. 562; 1987, c. 697; 1990,cc. 596, 597; 1993, c. 985; 1997, c. 199; 2004, c. 838; 2005, c. 95.)