Virginia’s legislative body, the General Assembly, began this year’s legislative session on January 10, 2018. Over 2000 bills have been introduced between the two houses of the General Assembly. The year 2018 has been a relatively slow year for legislation directly affecting the property and casualty insurance industry. The following bills are of particular interest to those in the property and casualty insurance industry.
Senate Bill 246
This bill amends Va. Code § 38.2-1817, removing the exemption for those persons awarded the designation of Chartered Property and Casualty Underwriter from the examination requirements for a property and casualty insurance license or a personal lines license. It will grandfather qualified licensees as long as their licenses are not terminated. The measure also (i) requires licensed resident public adjuster entities to meet the same bonding requirements ($50,000) as public adjuster entities and (ii) adds manager, member, or partner to those individuals that may be considered a designated licensed producer for an agency. In effect, this bill increases the entry requirements for new adjusters and agencies, while also broadening the class of people who are eligible for licensing if they comply.
Senate Bill 542
This bill amends a number of code sections concerning domestic surplus line insurers. It establishes criteria for the licensing by the State Corporation Commission of domestic surplus line insurers. The bill provides that policies issued by a domestic surplus line insurer are subject to the same taxes and maintenance assessments levied upon surplus line policies issued by eligible non-admitted insurers, if the Commonwealth is the home state of the insured. Policies issued by a domestic surplus line insurers are not subject to protections provided by the Virginia Property and Casualty Insurance Guaranty Association.
The bill exempts policies issued by a domestic surplus line insurers from all statutory requirements relating to insurance rating plans, policy forms, policy cancellation and nonrenewal, and premium charged to the insured in the same manner and to the same extent as a non-admitted insurer domiciled in another state. The measure provides that a domestic surplus line insurer is only authorized to write the types of insurance in the Commonwealth that a surplus line broker may procure with a non-admitted insurer approved by the Commission.