14 Va. Admin. Code § 5-335-30

Current through Register Vol. 40, No. 22, June 17, 2024

Section 14VAC5-335-30 - Requirement to offer supplemental extended reporting period

A. Every claims-made liability insurance policy shall include a provision that the named insured may purchase a supplemental extended reporting period in accordance with the provisions of 14VAC5-335-40 upon policy termination. To the extent that policy limits apply separately to each named insured, each named insured shall be separately entitled to purchase a supplemental extended reporting period. Policy termination of claims-made coverage shall include:

1. Cancellation or nonrenewal of the policy by the insurer or the insured;

2. Advancement of any applicable retroactive date; or

3. Renewal of the policy on other than a claims-made basis.

B. No offer of a supplemental extended reporting period is required if cancellation or nonrenewal of a claims-made liability insurance policy is due to:

1. Nonpayment of premium;

2. Failure to comply with terms or conditions of the policy; or

3. Fraud.

C. Each claims-made liability insurance policy shall contain provisions that clearly state when the supplemental extended reporting period will and will not be offered.

D. Upon a policy termination as set forth in subsection A of this section, the insurer shall offer in writing to the named insured a supplemental extended reporting period. The offer shall include the duration and premium of the required supplemental extended reporting period coverage in 14VAC5-335-40 and any other available duration and premium options. The offer shall be sent no earlier than the date of notification of termination of the policy and not later than 15 days after the termination of the policy. The named insured shall have a minimum of 30 days from policy termination to purchase the supplemental extended reporting period.

14 Va. Admin. Code § 5-335-30

Derived from Virginia Register Volume 20, Issue 21, eff. January 1, 2005; Amended, Virginia Register Volume 34, Issue 16, eff. 10/1/2018.

Statutory Authority: §§ 12.1-13 and 38.2-223 of the Code of Virginia.