The General Assembly of Virginia has enacted laws to protect
consumers by regulating insurance company practices.
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Insurance companies are not allowed to
discriminate unfairly as to the rates or kinds of coverage
available to consumers.
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Insurance companies are required to pay
life and health insurance claims promptly and fairly.
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Insurance companies may not refuse to
issue or refuse to continue a life insurance policy on
the life of any member of the United States Armed Forces,
the Reserves of the United States Armed Forces or the
National Guard due to his or her status as a member of
any such military organization or his or her duty assignment
while a member of any such military organization.
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Consumers have a right of access to certain
information collected by insurance companies, including
information on adverse underwriting decisions.
An Adverse Underwriting Decision is an action taken by
a company or agent to:
- Refuse your coverage,
- Terminate your coverage,
- Offer you coverage that differs from what you applied
for, or
- Offer you the coverage you applied for at a higher premium
rate than was quoted to you when you applied.
For example, if you apply for insurance and you are refused
coverage, the insurance company must tell you why or tell
you that upon written request you may receive an explanation.
There are exceptions to consumer rights, such as when fraud
might be involved.
