Chap. 144.—An ACT to amend and re-enact an act entitled “an act to provide
for the supervision, regulation, and fixing of the rates and charges of persons,
associations and corporations, issuing motor vehicle liability insurance
policies; to require such persons, associations, and corporations to file reports,
rates, rate manuals, schedules of rates, rating plans, information concerning
rates, and changed deviations therefrom, with the State Corporation Com-
mission; to prescribe the rights, powers and duties of the State Corporation
Commission concerning stich matters; to provide for the establishment of an
administrative bureau and membership therein; to provide for appeals from
the State Corporation Commission; to prescribe penalties for violations of
this act; and to repeal all acts and parts of acts in conflict herewith,”
approved March 23, 1932. {S B 170]

Approved March 11, 1936

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. Each and every person, association or corporation au-
thorized to issue motor vehicle liability insurance policies in this State
insuring (a) against loss or damage resulting from accident to, or
injury suffered by, any person, and for which the person insured is
liable, (b) against loss by liability for damage to property resulting
from the ownership, maintenance or use of any motor driven vehicle,
(c) against loss of or damage to any motor driven vehicle owned by
the insured caused by collision with some stationary or moving object
(other than, under (b) and (c), such person, association or corpora-
tion otherwise required by law to be a member of some bureau in this
State or whose rates or premium charges are subject to control or
supervision by the State Corporation Commission), shall within thirty
days from the date this act becomes effective file with the State Cor-
poration Commission, where the same shall be kept open for public
inspection, any and every rate manual, schedule of rates, rating plan
and all other information concerning such automobile liability and/or
property damage rates as may be suggested, approved, or made by any
such insurer, or by any rating organization of which it is a member;
and every such person, association, or corporation authorized to insure
against the hazards named in this act shall file with the State Corpora-
tion Commission every deviation from or increase or decrease in any
rates as previously filed in any rate manual or schedule of rates not less
than thirty days before it is proposed that such deviation or increase
or decrease shall be effective; provided that no such rate manual, or
schedule of rates, or rating plan, or any deviation therefrom or any
increase or decrease therein shall be or become effective unless and until
within thirty days of the date of the filing thereof, the State Corpora-
tion Commission shall have approved the same in writing, but the rates
now established by persons, associations or corporations authorized to
issue motor vehicle liability insurance policies in this State and in effect
at the time of the passage of this act, shall be used pending such ap-
proval; provided, further, that the State Corporation Commission may
approve any such rate manual or schedule of rates or rating plan or
any deviations therefrom or any increase or decrease therein for a
period of not less than ninety days and may extend such temporary
approval, at its discretion, for any additional period of not less than
ninety days each.

Section 2. If within thirty days from the date of filing thereof any
rate manual or schedule of rates, or rating plan, or any deviation from
or any increase or decrease in any such manual or schedule or plan
previously filed shall not have been approved, or shall have been dis-
approved in writing by the State Corporation Commission for the rea-
son that such rates appear to be excessive or inadequate or unreason-
able, or that such rates discriminate unfairly between risks within this
State of essentially the same degree of hazard upon application of any
person, association, or corporation who shall have filed such rate man-
ual or schedule of rates or rating plan or any deviation therefrom or
any increase or decrease therein, the State Corporation Commission
shall appoint a day not more than thirty days from the date of receipt
of such request for a hearing thereon. .

If, upon such hearing, it shall be made to appear to the satisfac-
tion of the commission that the rates set forth in such rate manual
or schedule of rates or rating plan, or such deviation therefrom or in-
crease or decrease therein are fair and reasonable and do not dis-
criminate unfairly between risks of essentially the same degree of
hazard, then the same shall be set up, approved and established. If,
however, after a full and impartial hearing, the commission shall decide
that such rates are unfair, unreasonable or discriminatory, the person,
association or corporation filing such rates shall have the right of appeal
to the supreme court of appeals from any such decision or order of the
State corporation commission.

Section 3. Every insurance carrier insuring against the hazards
named in section one of this act shall report to the State Corporation
Commission, in accordance with such reasonable rules as the commis-
sion may at any time prescribe for the purpose of determining the
solvency of the carrier, and the fairness, reasonableness and adequacy
of its rates; and for such purpose, the commission may inspect the
books and records of such insurance carrier and examine its agents,
officers and directors under oath; and the commission shall have the
power to, in such manner and by such means as it may deem proper
and adequate, gather statistics and information, and make investigations
concerning rates for such insurance. In determining the question of
rates and premium charges, the corporation commission is authorized
and empowered, in its discretion, to consider all branches and phases of
the business coming under the provisions of this act, both within and
without the State, and to use its own judgment and discretion in arriv-
ing at rates and premium charges that are reasonable.

Section 4. For the purpose of administering the rates and rating
plan, the insurance carriers insuring against the hazards named in sec-
tion one of this act shall organize a bureau, membership in which shall
be a prerequisite to write the lines of insurance coming under the pro-
visions of this act (except that the Virginia insurance rating bureau
may be designated as the administrative bureau in instances in which
automobile property damage and collision insurance is written in con-
junction with automobile fire and theft insurance), which bureau shall
have power to make necessary rules and regulations, subject to the ap-
proval of the State Corporation Commission, to carry out its functions.
The bureau shall be located in Richmond, Virginia.

Section 5. Any person, association or corporation insuring against
the hazards named in section one of this act at rates which shall not
have been approved by the State Corporation Commission, or who
shall otherwise violate the provisions of this act, shall be subject to a
fine of not less than ten dollars nor more than one thousand dollars
for each offense, such fine to be imposed by the State Corporation Com-
mission ; and the State Corporation Commission shall have the right to
revoke the license of any person, association, or corporation, for viola-
tion of any provision of this act.

Section 6. Nothing in this act shall be construed to prohibit mu-
tual insurance companies or reciprocal or inter-insurance exchanges
from insuring against the hazards named in section one of this act, but
such mutual insurance companies or reciprocal or inter-insurance ex-
changes shall be subject to all of the provisions of this act.

2. All acts or parts of acts inconsistent with any of the provisions
of this act are hereby repealed.