What About Insurance Complaints?

A. Know Your Rights - Consumers have been given certain rights by law. Virginia law provides that if an insurance company refuses to issue an auto policy to you, the company must tell you the reasons why. However, you may have to ask for these reasons. If you are refused insurance, ask for the reasons why. It may be that the insurance company's decision to deny you insurance was based
on incorrect information. You will then have the right to obtain a copy of the company's file concerning you. If the file contains information that is wrong, you will be allowed to correct this information.

Virginia law also prohibits an insurance company from refusing to issue an automobile policy solely for the following reasons: 

• because you have been refused auto insurance byanother company
• because you once purchased insurance through the assigned risk plan; or? because of your age, sex, residence, race, color, creed,
  national origin, ancestry, marital status or lawfuloccupation (including military service).

If you are refused auto insurance for one of the reasons listed above and no other reason, the action taken by the insurance company is illegal.

Also, after your policy has been in effect for sixty (60) days or more, the company cannot cancel your policy for the remainder of the
policy term unless: 

• you fail to pay the premium
• your driver's license is revoked or suspended
• an operator in your household or anyone who customarily operates your auto has had their license revoked or suspended
• your legal residence has been changed to another state and your automobile will be garaged in the new state of residence.

A company intending to nonrenew your policy must give you 45 days' notice in writing stating the termination date and the reason for termination. The notice must also tell you that you have a legal right to appeal to the Insurance Commissioner and obtain insurance through the Virginia Automobile Insurance Plan.

A company cannot nonrenew your personal auto policy solely for the following reasons: 

• age, sex, residence, race, color, creed, national origin, ancestry, marital status or lawful occupation (including military service)
• lack of driving experience or number of years of driving experience
• lack of supporting business (such as a homeowners policy)
• one or more accidents or violations that occurred more than 48 months before your policy's upcoming anniversary date
• one or more uninsured/underinsured motorist claims where the uninsured/underinsured motorist is known or there is physical evidence of contact
• a single not-at-fault claim filed under your medical expense benefits coverage
• one or more claims filed under the comprehensive coverage or towing coverage of your policy
• two or less accidents within three years unless the accident was wholly or partially the fault of the named insured, a resident of the same household, or other customary operator; or 
• credit information.

As an automobile policyholder, you have the right to collect the benefits promised should an accident occur. If you make a claim and you believe that your insurance company is not living up to its obligations, you can force the company to honor your valid claims. If your claim is $3,500 or less in excess of any deductible, and a company in bad faith refuses to pay you promptly, you can file suit against the company and recover double the amount your company owes plus reasonable attorney's fees and expenses. If your claim is more than $3,500 in excess of any deductible, and a company in bad faith refuses to pay you promptly, you can file suit against the company and recover the amount your company owes plus interest together with reasonable attorney's fees and expenses.

When You Have A Problem 

Contact your Agent or Company - If you believe your insurance company has improperly refused to issue or renew your policy or has refused to pay all or part of a valid claim, you have a right to question and complain. Sometimes a mistake has been made and it will be corrected if an inquiry is made.

A complaint by letter is best. Keep a copy of your letter. If you decide to complain by telephone, keep a written record of: 

• The date and time of your call 
• The name of the person you talked to 
• What was said during the call.

Help from the Bureau of Insurance - If you do not receive a prompt, courteous and satisfactory response, you may need to get help to resolve your problem.

The State Corporation Commission Bureau of Insurance provides free professional information and complaint services to all Virginia residents.

To use these services you can: 

• Call 371-9185 if you live in Richmond 
• Call (804) 371-9206 for Telecommunications Device for
  the Deaf 
• Call (877) 310-6560 the toll-free Hot-Line Number 
• Review the Bureau's Web site:www.state.va.us/scc/division/boi/
• Visit the Bureau of Insurance Tyler Building 1300 East Main Street Richmond, Virginia

The Bureau of Insurance will: 

• Thoroughly investigate your complaint
• See that you get a clear response to your questions Cut through red tape
• Correct misunderstandings.

But the Bureau cannot: 

• Force a favorable action on your complaint if it is not supported by facts and law.
• Provide legal services that are sometimes required to settle complicated problems.

If the Bureau is unable to resolve a problem, theywill tell you why. If the law and facts are on your side, they will try to see that your rights are protected and that your complaint is resolved in a satisfactory manner.