CHAPTER 253

An Act to amend and reenact §§ 12-65, 12-66, 88.1-21 as amended, and
88.1-252 of the Code of Virginia, the sections respectively relating
to supervision, control and payments from the Uninsured Motorists
Fund; distribution to insurance companies; reduction in rates ap-
plicable to the uninsured motorist endorsement and the disposition
of balance after payments to companies; definitions of motor vehicle
and aircraft insurance; and provisions governing the making of
rates, so as to provide that the rates charged for the uninsured
motorist endorsement shall be fixed as are the rates charged for
other motor vehicle insurance.

[S 249]

Approved March 14, 1962

Be it enacted by the General Assembly of Virginia:

1. That §§ 12-65, 12-66, 38.1-21, as amended, and 38.1-252 of the Code
of Virginia be amended and reenacted as follows:

§ 12-65. The Uninsured Motorists Fund now or hereafter provided
for by law shall be under the supervision and control of the State Cor-
poration Commission and shall be paid out, on warrants of the Comp-
troller issued on vouchers signed by such person as the Commission shall
designate, for the purpose of reducing the costs of * motor vehicle liability
insurance as defined by § 38.1-21, as amended.

§ 12-66. The Commission shall annually, at such time in each year as
it may deem best for the purposes, make distribution from the Fund
among the several insurance companies writing motor vehicle bodily
injury and property damage liability insurance on motor vehicles reg-
istered in the State of Virginia in the proportion that the premium in-
come for the basic limits coverage of each insurance company (that is,
gross premiums less cancellation and return premiums) for the coverage
required by paragraph (b) of § 38.1-381 of the Code of Virginia bears
to the total of such premium income for such coverage written in the
State during the preceding year. * The amount payable to any such
insurance company hereunder shall apply only to those companies main-
taining records satisfactory to the Commission as will disclose loss ex-
perience under such endorsement.

§ 38.1-21. Motor vehicle and aircraft insurance means and includes
insurance against:

(1) Loss of or damage resulting from any cause to motor vehicles,
which shall include trailers, or semitrailers or other attachments de-
signed for use in connection therewith, or aircraft and their equipment,
and against legal liability of the insured for loss or damage to the prop-
erty of another resulting from the ownership, maintenance or use of
motor vehicles or aircraft and against loss, damage or expense incident
to a claim of such liability, and

(2) Legal liability of the insured, and liability arising under para-
graph (b) of § 88.1-381 and against loss, damage, or expense incident to
a claim of such liability, arising out of the death or injury of any person
resulting from the ownership, maintenance or use of motor vehicles or
aircraft, but not including any kind of insurance specified in § 38.1-17.

Any policy of motor vehicle and aircraft insurance covering legal
liability of the insured under paragraph (2) of this section and lability
arising under paragraph (b) of § 38.1-381 may include appropriate pro-
visions whereby the insuring company assumes the obligation of pay-
ment of medical, hospital, surgical and funeral expenses arising out of
the death or injury of any person, and any such policy of motor vehicle
insurance may include appropriate provisions whereby the insuring com-
pany assumes the obligation of payment of weekly indemnity or other
specific benefits to persons who are injured and specific death benefits to
dependents, beneficiaries or personal representatives of persons who are
killed, if such injury or death is caused by accident and sustained while
in or upon, entering or alighting from, or through being struck by a motor
vehicle, provided that such obligations are irrespective of any legal lia-
bility of the insured or any other person.

§ 38.1-252. Rates for the kinds of insurance to which this chapter
applies shall be made in accordance with the following provisions:

ry. Rates shall not be excessive, inadequate or unfairly discrimina-

2) As to the kinds of insurance to which Article 2 of this chapter
applies, and the kinds of insurance to which paragraphs (15), (16) and
(17) of § 38.1-240 apply, including insurance against contingent, con-
sequential and indirect losses as defined in § 38.1-23, manual, minimum,
class rates, rating schedules or rating plans, shall be made and adopted,
except in the case of specific inland marine rates on risks specially rated;

(3) Due consideration shall be given to past and prospective loss
experience within and outside this State, to conflagration or catastrophe
hazards, to a reasonable margin for underwriting profit and contingencies,
to dividends, savings or unabsorbed premium deposits allowed or returned
by insurers to their policyholders or members or subscribers, to past
and prospective expenses both countrywide and those specially applicable
to this State, and to all relevant factors within and outside this State;
and in the case of fire insurance rates consideration shall be given to
the experience of the fire insurance business during a period of not less
than the most recent five-year period for which such experience is avail-
able and, in the case of motor vehicle insurance as defined in § 38.1-21,
consideration shall be given to all sums distributed by the State Corpora-
tion Commission from the Uninsured Motorist Fund in accordance with
the provisions of §§ 12-65 and 12-66 to the companies writing motor
vehicle bodily injury liability and property damage lability insurance
on motor vehicles registered in the State;

(4) As to the kinds of insurance to which paragraphs (1) to (13),
inclusive, of § 38.1-240 apply, including insurance against contingent,
consequential and indirect losses as defined in § 38.1-23, (a) the systems
of expense provisions included in the rates for use by any insurer or group
of insurers may differ from those of other insurers or groups of insurers
to reflect the requirements of the operating methods of any such insurer
or group with respect to any kind of insurance, or with respect to any
subdivision or combination thereof for which subdivision or combination
separate expense provisions are applicable; and (b) risks may be grouped
by classifications for the establishment of rates and minimum premiums.
Classification rates may be modified to produce rates for individual
risks in accordance with rating plans which establish standards for
measuring variations in hazards or expense provisions, or both. Such
standards may measure any difference among risks that can be demon-
strated to have a probable effect upon losses or expenses; and

(5) All such rates, rating schedules or rating plans and every
manual of classifications, rules and rates and every modification thereof,
heretofore approved by the Commission, shall be used until changed
with the approval of the Commission.