VA| Administrative Letter 2025-01 from the Virginia Bureau of Insurance consolidates and clarifies requirements for insurers issuing private passenger automobile policies regarding the application of points and premium increases due to at-fault accidents or motor vehicle convictions under Virginia law. Insurers must thoroughly investigate fault before assigning points or increasing premiums, may not penalize insureds for not-at-fault accidents after policy inception when adding drivers, and are limited to using accident or conviction information for rating purposes for up to 36 months, with specific timing requirements for applying such changes. Additionally, insurers are prohibited from charging for the same accident or conviction in both tiering and at the vehicle level, and must provide written notice to insureds about premium increases or point assignments, including the right to appeal to the Commissioner of Insurance within 60 days.
Key Points:
- Insurers must investigate and confirm fault before increasing premiums or assigning points, and cannot penalize for not-at-fault accidents when adding drivers after policy inception.
- Accident and conviction information may only be used for rating for up to 36 months, with stricter timing rules for applying surcharges or tier changes.
- Written notice with appeal rights must be provided to insureds for any premium increase or point assignment due to an accident or conviction.