CHAPTER 223

to amend and reenact §§ 88-208, 38-218, 38-258.26,
88-258 .88, and 88-557 of the Code of 1950, relating generally
to insurance so as to correct certain errors contained in the
Code of 1950, the sections relating to Virginia Insurance
Rating Bureau, deviations, filings, policies, and rere

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Approved March 15, 1950

Be it enacted by the General Assembly of Virginia:

1. That §§ 38-203, 38-213, 38-253.26, 38-253.33 and 38-557 of
the Code of 1950 be amended and reenacted as follows:

§ 38-203. Assessments on premium income.—lIn order to
provide funds necessary for its maintenance, the Bureau shall
make assessments on the premium income (that is, gross pre-
miums less cancellation and return premiums) of its members
derived from the kinds of insurance to which this article applies
hrough direct business done in this State during the preceding
calendar year, and where a member has done no business in this
State during the preceding calendar year, such assessment for
the first year shall be based on such premium income for the
current year, with such pro rata or minimum charges as may
have been approved by the Commission. In making any assess-
ment provided for in this section, consideration shall be given
(where it is proper so to do in order to effect an equitable assess-
ment) to the services and expenses of the Bureau with respect
to the kind or kinds of insurance involved; provided, that pre-
miums derived from the types of insurance to which this article
does not apply as specified in §§ * 88-198 and 38-218.10, shall
not be included in such premium income for assessment pur-
poses. Any member aggrieved by an assessment made under the
provisions of this article shall have the right of appeal to the
Commission for such relief as may be equitable.

§ 38-213. Adherence to filings made by Bureau; allow-
ance of deviations from rates, etc.—Every company or other
insurer, to which this article applies, as a member of the Bu-
reau shall adhere to the filings made on its behalf by the Bu-
reau, except any such member may make written application to
the Commission through the Bureau for permission to file and
use a uniform deviation from the rates, rating schedules or rat-
ing plans respecting any kind of insurance, or class * of risk
within a kind of insurance, or combination thereof, to which
this article applies. Such application shall specify the basis
for the deviation. Upon receipt of such application the Com-
mission shall set a time and place for a hearing at which
the applicant insurer and the Bureau may be heard and shall
give them not less than ten days’ written notice thereof. In the
event the Commission is advised by the Bureau that it does
not desire a hearing the Commission may, upon the consent of
the applicant, waive such hearing. In considering the applica-
tion for permission to file and use such uniform deviation the
Commission shall give consideration to all available statistics
and the principles of rate making as provided in § 38-208.

The Commission shall issue an order permitting the uni-
form deviation for such insurer to be filed and used if it is
found to be justified and thereupon the uniform deviation shall
become effective, or the Commission shall issue an order deny-
ing such application if it finds that the resulting premiums
would be excessive, inadequate or unfairly discriminatory.

Each deviation as provided for in this section shall be ef-
fective for a period of one year from the date of such permis-
sion, unless terminated sooner by or with the approval of the
Commission, provided that for good cause shown the Com-
mission may thereafter renew such permission from year to year.
§ 38-253.26. Rate filings by insurer; supporting infor-
mation; public inspection.—Every insurer shall file with the
Commission every manual of classifications, rules and rates,
every rating plan * and every modification of any of the fore-
going which it proposes to use. Every such filing shall state
the proposed effective date thereof, and shall indicate the char-
acter and extent of the coverage contemplated. When a filing
is not accompanied by the information upon which the insurer
supports such filing, and the Commission does not have suffi-
cient information to determine whether such filing meets the
requirements of * this chapter, it may require such insurer to
furnish the information upon which it supports such filing. A
filing and any supporting information shall be open to public
inspection.

§ 38-253.33. Contract or policy to accord with filings.—
No insurer shall make or issue a contract or policy of the type
to which this chapter applies, except in accordance with the fil-
ings which are in effect for said * insurer as provided in this
chapter or in accordance with §§ 38-253.29, 38-253.30 or
38-253.31.

§ 38-557. Penalties for violating §§ 38-551 to 88-555.—
Any reciprocal or inter-insurance exchange which violates any
of the provisions of §§ 38-551 to 38-555, 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 Com-
mission shall have the authority, cumulative with the imposition
of such fine or as an alternative thereto, to suspend or revoke
the license of such reciprocal or inter-insurance exchange.

2. An emergency exists and these sections as amended
shall be in force from their passage.