Virginia Issues New Rules Governing Rate Stabilization in Property and Casualty Insurance

Effective September 1, 2016, the Virginia State Corporation Commission, Bureau of Insurance issued new rules governing rate stabilization in property and casualty insurance.  The new rules implement the provisions of § 38.2-1906 F of the Code of Virginia, including the 2016 amendments, that allow limits on rate increases and decreases on (i) renewal policies; (ii) policies acquired by an insurer from another insurer pursuant to a written agreement of acquisition, merger or sale; or (iii) policies acquired by an agent book of transfer.  The new rules establish uniform standards for all rate stabilization plans, filing requirements, and prohibited actions for insurers that elect to cap rates.  The new rules are set out at 14VAC5-345-10 through 14VAC5-345-70 with forms.