2006 Code of Virginia § 38.2-508 - Unfair discrimination

38.2-508. Unfair discrimination.

No person shall:

1. Unfairly discriminate or permit any unfair discrimination betweenindividuals of the same class and equal expectation of life (i) in the ratescharged for any life insurance or annuity contract, or (ii) in the dividendsor other benefits payable on the contract, or (iii) in any other of the termsand conditions of the contract;

2. Unfairly discriminate or permit any unfair discrimination betweenindividuals of the same class and of essentially the same hazard (i) in theamount of premium, policy fees, or rates charged for any policy or contractof accident or health insurance, (ii) in the benefits payable under suchpolicy or contract, (iii) in any of the terms or conditions of such policy orcontract, or (iv) in any other manner;

3. Refuse to insure, refuse to continue to insure, or limit the amount,extent or kind of insurance coverage available to an individual, or charge anindividual a different rate for the same coverage solely because ofblindness, or partial blindness, or mental or physical impairments, unlessthe refusal, limitation or rate differential is based on sound actuarialprinciples. This paragraph shall not be interpreted to modify any otherprovision of law relating to the termination, modification, issuance orrenewal of any insurance policy or contract;

4. Unfairly discriminate or permit any unfair discrimination betweenindividuals or risks of the same class and of essentially the same hazards byrefusing to issue, refusing to renew, cancelling or limiting the amount ofinsurance coverage solely because of the geographic location of theindividual or risk, unless:

a. The refusal, cancellation or limitation is for a business purpose that isnot a mere pretext for unfair discrimination; or

b. The refusal, cancellation or limitation is required by law or regulatorymandate;

5. Make or permit any unfair discrimination between individuals or risks ofthe same class and of essentially the same hazards by refusing to issue,refusing to renew, cancelling or limiting the amount of insurance coverage ona residential property risk, or the personal property contained in aresidential property risk, solely because of the age of the residentialproperty, unless:

a. The refusal, cancellation or limitation is for a business purpose that isnot a mere pretext for unfair discrimination; or

b. The refusal, cancellation or limitation is required by law or regulatorymandate;

6. Refuse to issue or renew any individual accident and sickness insurancepolicy or contract for coverage over and above any lifetime benefit of agroup accident and sickness policy or contract solely because an individualis insured under a group accident and sickness insurance policy or contract;provided that medical expenses covered by both individual and group coverageshall be paid first by the group policy or contract to the extent of thegroup coverage. This subsection shall not apply to individual policies orcontracts issued or renewed pursuant to 38.2-4216.1; or

7. Consider the status of a victim of domestic violence as a criterion in anydecision with regard to insurance underwriting, pricing, renewal, scope ofcoverage, or payment of claims on any and all insurance defined in 38.2-100and further classified in Article 2 ( 38.2-101 et seq.) of Chapter 1 of thistitle, other than (i) legal services plans as provided for in Chapter 44 (38.2-4400 et seq.) of this title and (ii) the insurance classified in 38.2-110 through 38.2-133. The term "domestic violence" means theoccurrence of one or more of the following acts by a current or former familymember, household member as defined in 16.1-228, person against whom thevictim obtained a protective order or caretaker:

a. Attempting to cause or causing or threatening another person physicalharm, severe emotional distress, psychological trauma, rape or sexual assault;

b. Engaging in a course of conduct or repeatedly committing acts towardanother person, including following the person without proper authority,under circumstances that place the person in reasonable fear of bodily injuryor physical harm;

c. Subjecting another person to false imprisonment; or

d. Attempting to cause or causing damage to property so as to intimidate orattempt to control the behavior of another person.

Nothing in this subsection shall prohibit an insurer or insuranceprofessional from asking about a medical condition or from using medicalinformation to underwrite or to carry out its duties under an insurancepolicy even if the medical information is related to a medical condition thatthe insurer or insurance professional knows or has reason to know resultedfrom domestic violence, to the extent otherwise permitted under this sectionand other applicable law.

(Code 1950, 38.1-52; 1952, c. 317, 38.1-52.7; 1977, c. 529; 1978, c. 441;1979, c. 324; 1980, c. 404; 1986, c. 562; 1993, c. 130; 2001, c. 34.)