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Virginia Administrative Code (Last Updated: January 10, 2017) |
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Title 14. Insurance |
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Agency 5. State Corporation Commission, Bureau of Insurance |
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Chapter 30. Rules Governing Life Insurance and Annuity Replacements |
Section 80. Penalties
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A. An insurer, agent, representative, officer, or employee of an insurer failing to comply with the requirements of this chapter shall be subject to penalties as may be appropriate under the insurance laws of Virginia.
B. Policy and contract owners have the right to replace existing policies or contracts after indicating in or as part of the application for new coverage that replacement is not their intention. However, patterns of action by policy or contract owners who purchase the replacing policies from the same agent shall be deemed prima facie evidence of the agent's knowledge that replacement was intended in connection with the identified transactions, and these patterns of action shall be deemed prima facie evidence of the agent's intent to violate this chapter.
C. Where it is determined that the requirements of this chapter have not been met, the replacing insurer shall provide to the policyowner an in-force illustration if available, or policy summary for the replacement policy or available disclosure document for the replacement contract and the appropriate notice regarding replacements (Form 30-A or 30-C).
Historical Notes
Derived from Regulation No. 7, Case No. INS810114, Section IX, eff. March 1, 1982; amended, Volume 23, Issue 09, eff. April 1, 2007.