Chap. 372.—An ACT to amend and re-enact Section 4227-b of the Code of Vir-
ginia, relating to forms of policies to be used in writing certain kinds of in-
surance, and to penalties for violation of the provisions thereof, to make certain
changes in the authority of the State Corporation Commission relative to use
of certain standard forms, and to revise the section generally and to amend
an act entitled an act to authorize and regulate the exchange of certain classes
of reciprocal and inter-insurance contracts among individuals, partnerships and
corporations, empowering corporations generally to make such contracts, regu-
lating process in suits on such contracts, and prescribing certain fees, taxes and
licenses, and penalty for violation, approved March 20, 1918, as last amended
by an act approved March 29, 1934, by adding thereto a new section numbered
12 giving the State Corporation Commission certain authority relative to the
establishment of standard forms of policies to be used by reciprocal or inter-
insurance exchanges in writing certain kinds of insurance, and to penalties
for violation of the provisions thereof. [S 242]

Approved March 31, 1944

Be it enacted by the General Assembly of Virginia:
1. That section forty-two hundred twenty-seven-b of the Code of
Virginia be amended and re-enacted, as follows:
Section 4227-b. (a) If in the opinion of the State Corporation
Commission the use of any form of policy or of any rider, endorsement.
clause, permit or other form by insurance companies or other insurers
in writing motor vehicle liability insurance policies or motor vehicle
property insurance policies on risks located in this State insuring (1)
against loss or damage resulting from accident to, or injury suffered by,
any person, and for which the person insured is lable; (2) against loss
by liability for damage to property resulting from the ownership, mainte-
nance, or use of any motor vehicle; (3) against loss of. or damage to.
any motor vehicle, is so extensive that there should be a standard form
thereof, it shall thereupon prepare and file in its office a form thereof
and, by order entered of record, shall set a day not less than thirty days
from the day on which such order is entered upon which such form shall
become a standard form for use by all insurers, unless objection to the
provisions of such proposed standard form be filed in writing by an in-
surer within ten days from the day upon which such order is entered, and
thereafter no insurer, whether a stock or mutual company or other type
or form of insurance organization, shall use any form covering sub-
stantially the same agreement provided for by such standard form, un-
less it be in the precise language of the form so filed and established by
the Commission. If in accordance with the preceding provisions of this
section, objection to the provisions of such proposed standard form be
filed with the Commission by any insurer, the Commission, by order
entered of record, shall set a day, not less than thirty days from the day
upon which such objection is received, for a hearing thereon, at which
time any insurer at interest may appear and be heard. The Commission,
after a full and impartial hearing, may, by order entered of record, con-
firm or amend the provisions of such proposed standard form and shall
set a day not less than thirty days from the day on which such order is
entered upon which such form, or the amended provisions thereof, shall
become standard for use by all insurers as herein provided, or it may
revoke such proposed standard form. The Commission may amend the
provisions of any form which has been established as a standard form
and shall proceed in all respects in the manner herein provided for the
establishment of a new standard form. Whenever, in the opinion of the
Commission, there is no further necessity for requiring the use of any
such standard form, it may, by order entered of record, withdraw the
form and thereafter its use shall not be required as herein provided. For
the word “company” appearing in any such standard form, there may be
substituted a more accurate descriptive term for the type of insurer.
Additional provisions may be used with such standard form by any in-
surer with the approval of the Commission provided that the Commission
shall first determine that such additional provisions are not in conflict
with or inconsistent with said standard form or the laws of Virginia or
any of the rules and regulations lawfully made pursuant thereto. Such
approval and determination by the Commission shall be evidenced by an
order entered of record. Copies of all orders entered by the Commission
in accordance with the provisions of this section shall be sent to every
insurer affected thereby.
(b) Any insurer, whether a stock or mutual company or other type
or form of insurance organization, which violates any of the provisions
of this section, upon conviction thereof, shall be punished by a fine of not
less than ten dollars nor more than one thousand dollars for each offense
hereunder, such fine to be imposed and enforced by the Commission, and
the Commission shall have the authority, cumulative with the imposition
of such fine or as an alternative thereto, to suspend or revoke the license
of such insurer.

(c) The provisions of this section shall not apply to any reciprocal
or inter-insurance exchange.

2. That an act entitled an act to authorize and regulate the exchange
of certain classes of reciprocal and inter-insurance contracts among in-
dividuals, partnerships and corporations, empowering corporations gen-
erally to make such contracts, regulating process in suits on such con-
tracts, and prescribing certain fees, taxes and licenses, and penalty for
violation, approved March twentieth, nineteen hundred and eighteen, as
last amended by an act approved March twenty-ninth, nineteen hundred
and thirty-four, be amended by adding thereto a new section numbered
twelve, which new section shall read as follows:

Section 12. (a) If in the opinion of the State Corporation Commis-
sion the use of any form of policy or of any rider, endorsement, clause,
permit or other form by reciprocal or inter-insurance exchanges in writing
motor vehicle liability insurance policies or motor vehicle property in-
surance policies on risks located in this State insuring (1) against loss
or damage resulting from accident to, or injury suffered by, any person,
and for which the person insured is lable; (2) against loss by liability
for damage to property resulting from the ownership, maintenance, or
use of any motor vehicle; (3) against loss of, or damage to, any motor
vehicle, 1s so extensive that there should be a standard form thereof, it
shall thereupon prepare and file in its office a form thereof and, by order
entered of record, shall set a day not less than thirty days from the day
on which such order is entered upon which such form shall become a
standard form for use by all reciprocal or inter-insurance exchanges.
unless objection to the provisions of such proposed standard form be filed
in writing by a reciprocal or inter-insurance exchange within ten days
from the day upon which such order is entered, and thereafter no
reciprocal or inter-insurance exchange shall use any form covering sub-
stantially the same agreement provided by such standard form, unless it
be in the precise language of the form so filed and established by the
Commission. If in accordance with the preceding provisions of this sec-
tion, objection to the provisions of such proposed standard form be filed
with the Commission by a reciprocal or inter-insurance exchange, the
Commission, by order entered of record, shall set a day, not less than
thirty days from the day upon which such objection is received, for a
hearing thereon, at which time any reciprocal or inter-insurance ex-
change at interest may appear and be heard. The Commission, after a
full and impartial hearing, may, by order entered of record, confirm
or amend the provisions of such proposed standard form and shall set
a day not less than thirtv davs from the day on which such order is en-
tered upon which such form, or the amended provisions thereof, shall
become standard for use by all reciprocal or inter-insurance exchanges
as herein provided, or it may revoke such proposed standard form. The
Commission may amend the provisions of any form which has been estab-
lished as a standard form and shall proceed in all respects in the manner
herein provided for the establishment of a new standard form. When-
ever, in the opinion of the Commission, there is no further necessity for
requiring the use of any such standard form, it may, by order entered of
record, withdraw the form and thereafter its use shall not be required
as herein provided. For the word “company” appearing in any such
standard form, there may be substituted a more accurate descriptive
term for the type of insurer. Additional provisions may be used with
such standard form by any reciprocal or inter-insurance exchange with
the approval of the Commission provided that the Commission shall first
determine that such additional provisions are not in conflict with or in-
consistent with said standard form or the laws of Virginia or any of the
rules and regulations lawfully made pursuant thereto. Such approval
and determination by the Commission shall be evidenced by an order
entered of record. Copies of all orders entered by the Commission in
accordance with the provisions of this section shall be sent to every
reciprocal or inter-insurance exchange affected thereby.

(b) Any reciprocal or inter-insurance exchange which violates any
of the provisions of this section, upon conviction thereof, shall be
punished by a fine of not less than ten dollars nor more than one thousand
dollars for each offense hereunder, such fine to be imposed and enforced
by the Commission, and the Commission shall have the authority, cumula-
tive with the imposition of such fine or as an alternative thereto, to sus-
pend or revoke the license of such reciprocal or inter-insurance exchange.

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