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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 340. Rules Governing Standards for the Content of Fire Insurance or Fire Insurancein Combination with Other Coverages |
Section 20. Standards for content of policies
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Notwithstanding other statutory requirements, all fire or fire combination policies filed with the Commission must contain, as a minimum, the content of the coverages, terms and conditions contained in this chapter (14VAC5-340-10 et seq.). It is acceptable to provide broader and more favorable coverages, terms and conditions in the policy than the minimum standards of content provided for in this chapter. Also, the format and language may be other than that which is shown in this chapter, provided that the content remains as set forth herein.
As respects market value policies, no limited policy form shall be approved which does not prominently display an appropriate title which reflects the limitation in policy coverage. Acceptable titles are those which indicate the coverage limitation in a simple and objective manner such as "Limited Homeowners" or "Market Value Homeowners." Titles which fail to convey the coverage limitation, such as "Specialized Homeowners" or "Customized Homeowners," are not acceptable. The approved name shall be used everywhere the title appears on the policy form. The policy jacket shall display a notification to the policyholder of the restrictions found in the market value policy.
The policy filing shall include an eligibility standard which provides that the market value policy will not be used to insure any property which qualifies for an amount of insurance equal to 80% or more of the structure's full replacement cost under a conventional homeowner policy except at the choice of the insured. This replacement may be satisfied by use of an eligibility standard restricting sale of the market value policy to properties which would only qualify for coverage limits of less than 80% of full replacement cost.
All policy filings shall specifically note all provisions which are broader than the standards contained herein. In addition, for each policy filed, the company will specify the appropriate minimum standards section below (14VAC5-340-40 through 14VAC5-340-120) on which the form filing is based.
Historical Notes
Derived from Regulation 17, Case No. INS800067, § 3, eff. February 1, 1982.