CHAPTER 185

An Act to amend the Code of Virginia by adding in Chapter 1 of Title
88.1 an article numbered 11 containing sections numbered 88.1-70.9
through $8.1-70.12, prohibiting the termination of certain contracts
of insurance by cancellation or failure to renew the same without the
giving of notice to the insured and the furnishing to him, if requested,
of an explanation of the reason for such termination; and providing
that such explanation, if given, shall be privileged. § 81)

[

Approved March 31, 1966

Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia be amended by adding in Chapter 1 of Title
88.1 an article numbered 11 containing sections numbered 38.1-70.9 through
88.1-70.12, as follows: |
ARTICLE 11

§ 38.1-70.9. No contract of liability insurance covering the operation
of a motor vehicle which has been in effect for sixty days shall be terminated
by the insurer by cancellation or failure to renew, except for non-payment
of premium, unless the insurer gives the named insured notice in writing
at least thirty days prior to the proposed date of termination:

(a) that it proposes to terminate by cancellation or failure to renew
the insurance contract upon such date; and

(b) that the named insured, within fifteen days after the mailing
of such notice, may at his option, request the insurer to furnish a written
die artrage its specific reason or reasons for terminating or failing tc
renew; an

(c) that, upon receipt of a written request from the named insured,
it will forthwith mail to the named insured such written explanation.

§ 38.1-70.10. If the named insured exercises his option to request an
explanation the insurer shall forthwith, but in any event prior to the date
of the proposed termination or failure to renew, mail to the named insured
a written explanation, giving the reason or reasons for its failure to renew
the contract.

§ 38.1-70.11. An explanation furnished in accordance with § 38.1-
70.10 shall be privileged, and shall not constitute grounds for any cause of
action against the insurer or its representatives or any firm, person or
corporation who in good faith furnishes to the insurer the information upon
which the reasons are based.

§ 38.1-70.12. The provisions of this article shall not apply to policies
of liability insurance issued under any assigned risk plan established in
conformity with § 8$8.1-264.