Chap. 433.—An ACT to provide for the organization, maintenance and super-
vision of a fire, windstorm, lightning, tornado, hail, and automobile fire and
theft insurance rate making bureau; to provide for the making and filing of
such rates by the bureau, insurance companies and other insurers; whether
stock, mutual, reciprocal or inter-insurer; to generally regulate rate making
agreements; to prohibit discrimination; and to empower the State corpora-
tion commission to fix, approve, alter or reduce such rates; providing pen-
alties for violations; aud to repeal all acts and parts of acts in conflict here-

with. [H B 116]
Approved March 26, 1928

1. Be it enacted by the general assembly of Virginia, That under
the supervision of the State corporation commission, and within
thirty days after this act becomes a law, the fire insurance coim-
panies and other insurers whether stock, mutual, reciprocal or inter-
insurer authorized to effect insurance against the risk of loss or
damage by fire, windstorm, tornado, hail, lightning and automobile
fire and theft and all other kinds of insurance which fire insurance
companies are authorized to write in this State, except insurance
upon or in connection with marine insurance, other than shore
marine, or transportation risks, other than fire and theft insurance
on automobiles in this State, shall organize a bureau to be known
as the Virginia insurance rating bureau, for the purpose of making
or adopting rates for insurance against such hazards and all such
companies and other insurers, except those exempted under sec-
tion fifteen hereof, now or hereafter authorized to transact such
business in this State shall be members of such bureau; provided
that, with the approval of the State corporation commission, any
such company or other insurer, insuring flour mills, or grain eleva-
tors or lumber, in connection with an inspection service, may file
its rates and schedules, applicable to such risks only, direct with
the said commission, for approval, and not through the said bureau.

2. The government of the bureau shall be vested in its mem-
hers, and it shall not be subject to the direction or control of any
other bureau, association, corporation, company, individual or group
of individuals. Each member shall have one vote, and the bureau
shall have power to establish reasonable agreements and by-laws
for its governance, and shall be permitted to adopt reasonable rules
and regulations necessary to carrying out its functions, but such
reasonable agreements, by-laws, rules and regulations shall not be in-
consistent with the provisions of this act and shall be first approved by
the State corporation commission. All amendments to such agreements,
by-laws, rules and regulations shall, hefore being effective, be submitted
to and approved by the State corporation commission. The principal
office of the bureau shall be located in the city of Richmond, Virginia,
where all records shall be kept and all business of the bureau trans-
acted; provided, that with the approval of the State corporation com-
inission branch offices of the hureau mav be established within the
State. The bureau shall furnish, without discrimination, its service
to its members.

The bureau, subject to the approval of the State corporation com-
missien, shall apportion the expenses among its members in propor-
tion to the gross premium income on business done in the State.

3. Every risk specifically rated in this State shall be rated upon
schedule after inspection; a written survey of every such risk shall be
retained as a permanent record during the existence of such risk. A
copy of such survey shall be furnished to the owner of any risk upon
request, without expense to such owner. The rating bureau, every in-
surance company and other insurer subject to this act shall keep a
permanent record in the city of Richmond, Virginia, of the rates
charged by such insurance company or other insurer on all! risks
written by such insurance company or other insurer and rated by such
bureau; provided, that the ratiag bureau shall not be required to keep
such records of those insurers which are not members thereof: and
provided, further that schedules, inspections and surveys now in pos-
session of the Virginia rating and inspection bureau may, with the
approval of the State corporation commission, be used in lieu of new
schedules, inspections and surveys.

4. Any variation of any company or other insurer from the sched-
ule of rates established by the bureau shall be uniform in its applica-
tion to all of the risks in the class for which the variation is made,
and no such uniform variation shall he made unless notice thereof shall
be filed with the bureau and approved by the State corporation com-
mission at least fifteen days before such uniform variation is in effect.

5. The insurance companies, other insurers and rating bureau sub-
ject to this act shall furnish, upon the request of the State corporation
commission and without charge, all reports and information which
such commission shall consider necessary, relevant or desirable for the
proper discharge of all duties imposed upon such commission by this
act. Such information shall be furnished in such form and in such
manner and at such times as the State corporation commission may
from time to time direct.

6. No company or other insurer transacting business in this State
shall enter into any agreement for the purpose of making, establishing
or controlling rates covering property located in this State regulated by
this act, except in accordance with the provisions hereof.

7. The State corporation commission and any member of the bureau
shall have access at all times to all records, correspondence, files,
reports, books of account, agreements, and any and all other records
and information in the possession of the Virginia insurance rating
bureau.

The bureau shall give to the assured, without cost, any and all in-
formation requested by him pertaining to his risk.

8. No rate, premium charge, schedule, rating method, rule, by-law,
agreement or regulation shall become effective or shall be charged,
applied, or enforced in this State by such rating bureau, insurance
company, or other insurer, governed by the provisions of this act until
it shall have been first filed with and approved by the State corporation
commission, but a rate produced by an approved schedule shall be
used pending such approval.

9. The State corporation commission is hereby empowered to 1n-
vestigate, either upon its own motion, or at the request of any citizen of
this State, the necessity for «1 reduction of rates. If, upon such in-
vestigation, it appears that the rates charged in this State for the
five years next preceding are producing a profit in excess of what is
reasonable, it shall order such reduction of rates as will, in its opinion,
produce a fair and reasonable profit only. Any such reduction ordered
by the State corporation commission shall be applied by the companies,
subject to its approval. If the companies do not, within thirty-days,
submit a classification, or classifications, which meet the approval of
the State corporation commission, it shall apply such reduction in
such manner as appears to it to be just and equitable. In determining
the question of profits, rates and premium charges, the corporation
commission is authorized and empowered, in its discretion, to consider
all branches and phases of the business, both within and without the
State, and to use its own judgment and discretion in arriving at profits,
rates and premium charges that are reasonable.

The State corporation commission is also empowered, after in-
vestigation, to order removed at such time and in such manner as it
shall specify any discrimination existing between individual risks, classes
of risks or territorial classifications.

10. An appeal shall lie from any order or decision of the State
corporation commission to the supreme court of appeals at the in-
stance of the applicant or of anv party in interest. The method of taking
and prosecuting such appeal in so far as is not fixed by law shall be
prescribed by the rules of the supreme court of appeals.

11. The State corporation commission shall so far as practicable in
the exercise of its functions under this act approve such rates, sched-
ules, rating methods, rules, by-laws, regulations and agreements as
shall be calculated to lessen the fire hazard in this State and thereby
result in the lowering of the insurance cost.

12. The State corporation commission shall have power to examine
such rating bureau and all companies and other insurers coming under
the provisions of this act in respect hereof as often as it deems it ex-
pedient to do so, and to require such rating bureau and all companies
and other insurers to keep and furnish such records and information
as will disclose accurately their loss experience in this State. A copy
of the report of such examination shall be filed as a public record in
the office of the State corporaticn commission. Such examination shall
be made at the expense of the bureau, company or other insurer
examined.

13. The State corporation commission may, in its discretion, sus-
pend or revoke the license of any insurance company or other insurer
failing to abide by any final order of said commission.

14. Any expense incurred by the State corporation commission in
carrying out the provisions of this act shall be paid out of the funds
provided for the maintenance of the bureau of insurance.

15. This act shall not apply to local mutual insurance companies
and associations organized under the laws of this State conducting
business only in this State and exclusively upon the assessment plan,
nor to insurance upon or in connection with marine insurance, other
than shore marine, or transportation risks, other than fire and theft in-
surance on automobiles.

151%. The provisions of this act shall not apply to risks protected
in whole or in part by automatic sprinklers and insured in connection
with an inspection service; provided, that the State corporation com-
mission may require from the companies and other insurers writing
such sprinklcred risks, reports in relation thereto, containing such in-
formation, in such form, in such manner and at such times as the said
commission may direct; and provided further, that the State corpora-
tion commission shall not take into consideration the experience of the
companies and other insurers on such sprinklered risks in determining
the question of profits, rates and premium charges that are reasonable
for other classes of risks subject to the provisions of this act.

16. The act entitled an act to provide for the organization, opera-
tion and supervision of fire insurance rate-making bureaus; to provide
for a review of rates and rules fixed by such bureaus for insurance
upon property in this State; to prohibit discrimination in such rates;
to regulate all agreements between fire insurance companies or their
agents affecting such rates; and empowering the commissioner of in-
surance to reduce fire insurance rates, and providing for penalty for
violation, approved March tenth, nineteen hundred and twenty, and
all other acts and parts of acts inconsistent with this act are hereby
repealed.