CODE OF VIRGINIA

PURPOSES OF CHAPTER (§ 38.2-1900)

A. This chapter shall be liberally construed to achieve the purposes stated in
subsection B of this section.

B. The purposes of this chapter are to:

   1.  Protect policyholders and the public against the adverse effects of
   excessive, inadequate or unfairly discriminatory rates;

   2.  Encourage independent action by insurers and reasonable price competition
   among insurers as the most effective way to produce rates that conform to the
   standards of subdivision 1;

   3.  Provide formal regulatory controls for use if independent action and price
   competition fail;

   4.  Authorize cooperative action among insurers in the rate making process,
   and regulate such cooperation in order to prevent practices that tend to
   create monopoly or to lessen or destroy competition;

   5.  Provide rates that are responsive to competitive market conditions and
   improve the availability of insurance in this Commonwealth; and

   6.  Regulate the business of insurance in a manner that will preclude
   application of federal antitrust laws.

HISTORY: 1973, c. 504, § 38.1-279.29; 1986, c. 562.