Key Takeaways
- The Virginia State Corporation Commission (SCC) Bureau of Insurance regulates all P&C insurance activities in Virginia
- The Commissioner of Insurance is appointed by the three-member SCC, not elected
- Virginia follows the NAIC model for insurance regulation with state-specific modifications
- The Bureau of Insurance handles licensing, rate review, market conduct, and consumer complaints
- Virginia uses a file-and-use rate system for most property and casualty lines
State Corporation Commission Bureau of Insurance
Important: This study guide covers Virginia state-specific Property & Casualty insurance content only. You should complete the national Property & Casualty exam preparation first, as it covers the foundational insurance concepts tested on your exam.
The Virginia State Corporation Commission (SCC) Bureau of Insurance is the state agency responsible for regulating the Property & Casualty insurance industry in Virginia. Unlike many states where the Insurance Commissioner is elected, Virginia's Commissioner is appointed.
The State Corporation Commission
The SCC is Virginia's unique regulatory structure:
- Three-member Commission elected by the General Assembly
- Commissioners serve 6-year staggered terms
- SCC has jurisdiction over insurance, utilities, banking, and corporations
- Bureau of Insurance operates under SCC authority
Commissioner of Insurance
The Commissioner of Insurance is:
- Appointed by the three-member SCC
- Responsible for enforcing Virginia insurance law (Title 38.2)
- Authorized to adopt regulations, review rates, investigate violations, and discipline licensees
- Directs the day-to-day operations of the Bureau of Insurance
Commissioner Powers for P&C Insurance
| Power | Description |
|---|---|
| Licensing | Issue, suspend, and revoke producer licenses |
| Rate Review | Review property and casualty insurance rates |
| Market Conduct | Examine insurer business practices |
| Enforcement | Investigate and prosecute violations |
| Consumer Protection | Handle complaints and protect policyholders |
| Rulemaking | Adopt regulations interpreting insurance law |
Rate Regulation
Virginia uses a file-and-use system for most P&C insurance:
File-and-Use System
- Insurers file rates with the Bureau before use
- Rates become effective upon filing (or within specified period)
- Commissioner can disapprove rates within 30 days
- Rates must not be excessive, inadequate, or unfairly discriminatory
Rate Standards
| Standard | Meaning |
|---|---|
| Not Excessive | Rates must not generate unreasonable profit |
| Not Inadequate | Rates must be sufficient for claims and expenses |
| Not Discriminatory | Rates must not unfairly target groups |
Bureau of Insurance Organization
The Bureau operates through several divisions:
- Agent Licensing Division - Handles producer licensing
- Property and Casualty Division - Reviews P&C rates and forms
- Market Conduct Division - Examines insurer practices
- Consumer Services Division - Handles consumer complaints
- Financial Regulation Division - Monitors insurer solvency
How is the Virginia Commissioner of Insurance selected?
What rate regulation system does Virginia use for most P&C insurance?