38.2-1715 - Prohibited advertisement of Association coverage in insurance sales; notice to policy owners.
§ 38.2-1715. Prohibited advertisement of Association coverage in insurancesales; notice to policy owners.
A. No person, including an insurer, agent, or affiliate of an insurer shallmake, publish, disseminate, circulate, or place before the public, or cause,directly or indirectly, to be made, published, disseminated, circulated orplaced before the public, in any newspaper, magazine or other publication, orin the form of a notice, circular, pamphlet, letter or poster, or over anyradio station or television station, or in any other way, any advertisement,announcement or statement, written or oral, that uses the existence of theAssociation of this Commonwealth for the purpose of sales, solicitation, orinducement to purchase any form of insurance covered by this chapter. Thissubsection shall not apply to the Association or any other entity that doesnot sell or solicit insurance.
B. By January 1, 2011, the Association shall prepare a summary documentdescribing the general purposes and current limitations of this chapter andthat complies with subsection C. This document shall be submitted to theCommission for approval. At the expiration of the sixtieth day after the dateon which the Commission approves the document, an insurer may not deliver apolicy or contract to a policy or contract owner unless the summary documentis delivered to the policy or contract owner at the time of delivery of thepolicy or contract. The document shall also be available upon request by apolicy or contract owner. The distribution, delivery, or contents orinterpretation of this document does not guarantee that either the policy orthe contract or the owner of the policy or contract is covered in the eventof the impairment or insolvency of a member insurer. The summary documentshall be revised by the Association as amendments to the chapter may require.Failure to receive this document does not give the policy owner, contractowner, certificate owner, certificate holder, or insured any greater rightsthan those stated in this chapter.
C. The document prepared under subsection B shall contain a clear andconspicuous disclaimer on its face. The Commission shall establish the formand content of the disclaimer. The disclaimer shall:
1. State the name and address of the Association and the Bureau of Insurance;
2. Prominently warn the policy or contract owner that the Association may notcover the policy or contract or, if coverage is available, it will be subjectto substantial limitations and exclusions and conditioned on continuedresidence in the Commonwealth;
3. State the types of policies for which guaranty funds will provide coverage;
4. State that the insurer and its agents are prohibited by law from using theexistence of the Association for the purpose of sales, solicitation, orinducement to purchase any form of insurance;
5. State that the policy or contract owner should not rely on coverage underthe Association when selecting an insurer;
6. Explain rights available and procedures for filing a complaint to allege aviolation of any provisions of this chapter; and
7. Provide other information as directed by the Commission including but notlimited to, sources for information about the financial condition of insurersprovided that the information is not proprietary and is subject to disclosureunder the Freedom of Information Act (§ 2.2-3700 et seq.).
D. A member insurer shall retain evidence of compliance with subsection B forso long as the policy or contract for which the notice is given remains ineffect.
(1976, c. 330, § 38.1-482.33; 1986, c. 562; 2010, c. 510.)