Virginia Administrative Code Title 14 - INSURANCE
Overview of VAC Title 14 – Insurance
Title 14 of the Virginia Administrative Code contains the regulations governing the insurance industry in Virginia, including insurance companies, agents, brokers, and related activities. It is issued under the authority of the Virginia State Corporation Commission (SCC), Bureau of Insurance, which regulates insurance to protect consumers and ensure the solvency of insurers.
Key Areas Covered in Title 14
1. Organization and Licensing of Insurers
Rules for the formation, licensing, and registration of insurance companies operating in Virginia.
Requires insurers to meet capital, reserve, and financial reporting requirements to ensure solvency.
Governs foreign, domestic, and alien insurers (companies from other states or countries operating in Virginia).
2. Licensing of Agents, Brokers, and Adjusters
Sets qualifications, examinations, and continuing education requirements for insurance agents, brokers, and adjusters.
Outlines procedures for licensing, renewal, suspension, and revocation of licenses.
Ensures that insurance professionals meet ethical and legal standards.
3. Insurance Policy Regulations
Specifies the form, content, and language that insurance policies must use.
Governs policy provisions, coverage requirements, and exclusions to protect consumers.
Rules for auto, health, life, property, and casualty insurance policies.
4. Rates and Premiums
Regulates how insurance rates and premiums are filed and approved.
Ensures that premiums are adequate, not discriminatory, and not excessive.
Requires insurers to justify rate increases and maintain records.
5. Claims Handling
Establishes standards for claims processing, including timelines, documentation, and fairness.
Protects consumers from unfair claims practices, such as undue delays or wrongful denial of claims.
Defines penalties for insurers violating claims-handling regulations.
6. Consumer Protection
Rules to prevent fraud by insurers, agents, and policyholders.
Provides procedures for consumer complaints and investigations by the Bureau of Insurance.
Ensures disclosure of key information to policyholders, including terms, conditions, and rights.
7. Financial Reporting and Solvency
Insurers must file annual financial statements, audits, and risk-based capital reports with the SCC.
Ensures that insurance companies maintain enough assets to meet obligations to policyholders.
8. Specialized Insurance Programs
May include rules for:
Workers’ compensation insurance
Health insurance coverage requirements
Automobile insurance requirements
Professional liability and surety bonds
9. Enforcement and Penalties
The SCC has authority to investigate, fine, suspend, or revoke licenses of insurers or agents for violations.
Establishes procedures for hearings, appeals, and administrative enforcement actions.
✅ Summary
VAC Title 14 provides a comprehensive regulatory framework for the insurance industry in Virginia. Its purpose is to:
Ensure the solvency and proper conduct of insurance companies.
Protect policyholders and consumers from unfair practices.
Regulate insurance agents, brokers, and adjusters.
Oversee policy forms, rates, claims, and specialized insurance programs.
Enforce compliance through reporting requirements, audits, and penalties.
In short, Title 14 balances industry stability with consumer protection.
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