Virginia Code 46.2-424: Duty of insurance carrier after notice of accident; report of omissions by insurers to State Corporation Commission; investigation and assessment for omissions
On receipt of the certificate of insurance, the insurance carrier or surety company named in the certificate of insurance shall determine whether the policy or bond was applicable to liability, if any, as to the named insured. Thereupon and not later than thirty days following receipt of the certificate of insurance, the insurance company or surety company shall cause to be filed with the Commissioner a written notice if the policy or bond was not applicable to liability, if any, as to the named insured resulting from the accident. The Commissioner shall prescribe the manner in which the written notice shall be made.
Terms Used In Virginia Code 46.2-424
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
- suspension: means that the document or privilege suspended has been temporarily withdrawn, but may be reinstated following the period of suspension unless it has expired prior to the end of the period of suspension. See Virginia Code 46.2-100
- Vehicle: means every device in, on or by which any person or property is or may be transported or drawn on a highway, except personal delivery devices and devices moved by human power or used exclusively on stationary rails or tracks. See Virginia Code 46.2-100
When the insurance company or surety company notifies the Commissioner that the policy or bond named in the certificate of insurance was not applicable to liability resulting from the accident, the Department shall determine, under § 46.2-708, whether suspension of the driver’s license, registration cards, and license plates issued to the owner of the motor vehicle involved in the accident is required.
If the records of the Department reasonably indicate that any insurance carrier or surety company does not cause to be filed the notice herein required, the Commissioner shall report every such omission to the State Corporation Commission.
The State Corporation Commission shall investigate every such report of omission. If the Commission finds that any insurance carrier or surety company licensed to transact business in the Commonwealth, has failed, without good reason, to cause to be filed the notice required hereunder, the State Corporation Commission may assess the carrier or company fifty dollars for each omission.
Code 1950, § 46-438; 1958, c. 541, § 46.1-451; 1972, c. 442; 1989, c. 727.