38.2-1916 - Certain conduct by insurers and rate service organizations prohibited.
§ 38.2-1916. Certain conduct by insurers and rate service organizationsprohibited.
A. As used in this section, the word "insurer" includes two or moreinsurers (i) under common management, (ii) under common controllingownership or (iii) under other common effective legal control and in factengaged in joint or cooperative underwriting, investment management,marketing, servicing or administration of their business and affairs asinsurers.
B. No insurer or rate service organization shall:
1. Combine or conspire with any other person to monopolize or attempt tomonopolize the business of insurance or any kind, subdivision or class ofinsurance;
2. Agree with any other insurer or rate service organization to charge oradhere to any rate, although insurers and rate service organizations maycontinue to exchange statistical information;
3. Make any agreement with any other insurer, rate service organization orother person to restrain trade unreasonably;
4. Make any agreement with any other insurer, rate service organization orother person that may substantially lessen competition in any kind,subdivision or class of insurance; or
5. Make any agreement with any other insurer or rate service organization torefuse to deal with any person in connection with the sale of insurance.
C. No insurer may acquire or retain any capital stock or assets of, or haveany common management with, any other insurer if such acquisition, retentionor common management substantially lessens competition in the business ofinsurance or any kind, subdivision or class thereof.
D. No rate service organization, or any of its members or subscribers, shallinterfere with the right of any insurer to make its rates independently ofthe rate service organization.
E. No rate service organization shall have or adopt any rule, exact anyagreement, or engage in any program that would require any member, subscriberor other insurer to utilize some or all of its services, or to adhere to itsrates, rating plans, rating systems, underwriting rules, or policy forms, orto prevent any insurer from acting independently. Notwithstanding theforegoing, with respect to insurance defined in § 38.2-119, a rate serviceorganization may develop uniform (i) policies, (ii) classification systems,(iii) statistical plans, (iv) experience rating plans, and (v) manual ruleswhich shall be adhered to by its members.
(1976, c. 279, § 38.1-279.44:1; 1986, c. 562; 1990, c. 596; 1993, c. 985.)