HB3016: Insurance agents; repeals a provision for license termination.
Be it enacted by the General Assembly of Virginia:
1. That § 38.2-1825 of the Code of Virginia is amended and reenacted as follows:
§ 38.2-1825. Duration and termination of licenses and appointments.
A. A license issued to:
1. An individual agent shall authorize him to act as an agent until his license is otherwise terminated, suspended or revoked.
2. A business entity shall authorize such business entity to act as an agent until such license is otherwise terminated, suspended, or revoked. The dissolution or discontinuance of a partnership, whether by intent or by operation of law, shall automatically terminate all licenses issued to such partnership. The Bureau shall automatically terminate all insurance licenses within ninety calendar days of receiving notification from the clerk of the Commission that the certificate of organization or charter of a domestic limited liability company or corporation, respectively, whether by intent or by operation of law, has been terminated or that the certificate of registration or certificate of authority of a foreign limited liability company or corporation, respectively, has been revoked.
B. An agent's license shall automatically terminate
after a period of 183 calendar days during which no appointment of such agent
under such license was in effect. The Commission may, upon a showing of good
cause and upon payment of any prescribed fee, waive or extend this requirement.
As used herein, the term "good cause" shall not include negligence,
clerical error, or administrative oversight by the licensee or the appointing
insurer.
C. The license issued to a variable
contracts agent pursuant to this chapter shall terminate immediately upon the
termination of the licensee's life and annuities insurance agent license, and
may not be applied for again until the person has been issued a new life and
annuities insurance agent license.
D C. The
license issued to a surplus lines broker pursuant to this title shall terminate
immediately upon the termination of the licensee's property and casualty
insurance agent license, and may not be applied for again until the person has
been issued a new property and casualty insurance agent license.
E D.
Immediately upon termination of a settlement agent's last appointment under his
title insurance agent license, the Bureau shall notify the Virginia State Bar
to terminate the settlement agent's registration and the person shall not be
permitted to act as a settlement agent under his title insurance agent's
license until a new appointment has taken effect.
F E. An
appointment issued to an agent by an insurer, unless terminated, suspended or
revoked, shall authorize the appointee to act as an agent for that insurer and
to be compensated therefor notwithstanding the provisions of §§ 38.2-1812 and
38.2-1823.