Virginia Code 38.2-1900: Purposes of chapter
A. This chapter shall be liberally construed to achieve the purposes stated in subsection B of this section.
Terms Used In Virginia Code 38.2-1900
- business of insurance: include solicitation, negotiations preliminary to execution, execution of an insurance contract, and the transaction of matters subsequent to execution of the contract and arising out of it. See Virginia Code 38.2-100
- Process: includes subpoenas, the summons and complaint in a civil action, and process in statutory actions. See Virginia Code 1-237
- rates: means any rate of premium, policy fee, membership fee or any other charge made by an insurer for or in connection with a contract or policy of insurance. See Virginia Code 38.2-100
B. The purposes of this chapter are to:
1. Protect policyholders and the public against the adverse effects of excessive, inadequate or unfairly discriminatory rates;
2. Encourage independent action by insurers and reasonable price competition among insurers as the most effective way to produce rates that conform to the standards of subdivision 1;
3. Provide formal regulatory controls for use if independent action and price competition fail;
4. Authorize cooperative action among insurers in the rate making process, and regulate such cooperation in order to prevent practices that tend to create monopoly or to lessen or destroy competition;
5. Provide rates that are responsive to competitive market conditions and improve the availability of insurance in this Commonwealth; and
6. Regulate the business of insurance in a manner that will preclude application of federal antitrust laws.
1973, c. 504, § 38.1-279.29; 1986, c. 562.