Bureau Responsibilities
The Bureau of Insurance is organized into four divisions:
Each area has unique responsibilities.
Financial Regulation
The Financial Regulation Division of the Bureau of Insurance is divided into three
sections: Company Licensing and Regulatory Compliance, Financial Analysis, and Financial
Condition Examination.
The Company Licensing and Regulatory Compliance section is primarily responsible
for administering the initial license, approval, and registration process for insurers
and insurance related entities desiring to do the business of insurance in Virginia.
The section also has the responsibility for monitoring health maintenance organizations,
premium finance companies, automobile clubs, multiple employer welfare arrangements,
viatical settlement providers and continuing care retirement communities. In addition,
the section is responsible for ensuring regulatory compliance with licensing requirements
for companies transacting business in Virginia.
The Financial Analysis section is charged with the on-going monitoring and solvency
assessment of insurance companies. The section also has the responsibility for approving
purchasing groups, risk retention groups, surplus lines carriers, and qualified
reinsurers. In addition, the section is responsible for notification of any insolvency
to the Insurance Guaranty Fund Associations.
The Financial Condition Examination section is responsible for conducting periodic
on-site examinations of domestic insurers’ accounts, records, books, and operations.
The section also has the responsibility for publishing Examination Reports on the
financial condition of insurance companies and any material findings.
Life and Health Market Regulation
The Life and Health Market Regulation Division monitors the market activities of
companies and agents within the Life and Health classes of insurance. There are
seven functional sections, whose responsibilities are described below:
Consumer Services: This section logs, investigates and works toward resolution of
complaints about agents, agencies and companies. They make recommendations for disciplinary
action where necessary. Consumer Services representatives also provide consumers
with information and answer insurance-related questions.
Market Conduct: This section performs field examinations of insurance companies
to ensure their business practices are in compliance with Virginia’s insurance laws
and regulations.
Forms and Rates: This section reviews policies and contracts to ensure they are
in compliance with statutory and regulatory requirements. They also review and,
for certain lines, may approve premium rates.
Research: This section assesses the impact of major issues affecting the insurance
industry, develops regulations and proposes legislation relative to the issues.
They participate in legislative studies, undertake consumer research projects and
develop guidebooks to promote awareness of insurance issues and standards.
Office of the Managed Care Ombudsman: This section helps consumers who have Managed
Care Health Insurance Plan (MCHIPs) products understand their rights of appeal of
adverse decisions by MCHIPs.
Outreach Coordinator: Insurance Consumer Outreach serves and protects by providing
education, information, and assistance to consumers. This section accomplishes this
mission by coordinating all life and health consumer outreach programs, including
special programs for senior citizens.
External Appeals: In addition to the traditional services provided by this division,
Life and Health Market Regulation also has a section dedicated to the external review
of final adverse decisions rendered by managed care health insurance plans.
Property and Casualty Market Regulation
The Property and Casualty Market Regulation Division monitors the market activities
of companies and agents within the Property and Casualty classes of insurance. There
are five functional sections, whose responsibilities are described below:
Consumer Services: This section logs, investigates and works toward resolution of
complaints about agents, agencies and companies. Consumer Services representatives
also provide consumers with information and answer insurance-related questions.
Market Conduct: This section performs field examinations of insurance companies
to ensure their business practices are in compliance with Virginia’s insurance laws
and regulations. Available for download: Common Problems Found During Property and
Casualty Market Conduct Examinations.
Personal & Commercial Lines Rules, Rates and Forms: This section reviews policies
and contracts to ensure they are in compliance with statutory and regulatory requirements.
They also review and, for certain lines, may approve premium rates.
Research: This section assesses the impact of major issues affecting the insurance
industry, develops regulations and proposes legislation relative to the issues.
They participate in legislative studies, undertake consumer research projects and
develop guidebooks to promote awareness of insurance issues and standards.
Outreach Coordinator: Property and Casualty Insurance Consumer Outreach provides
education, information, and assistance to consumers and members of the insurance
industry. This section accomplishes this mission by coordinating all property and
casualty consumer outreach programs.
Agent Regulation and Administration
Agent Regulation and Administration provides the primary financial and personnel
support for all operational departments in the Bureau of Insurance. This includes
preparing the Bureau of Insurance biennial budget, collecting and recording fees
and taxes and overseeing Bureau of Insurance personnel transactions.
Agents Licensing: This section performs licensing for all lines of insurance and
tracking functions for the entire Bureau of Insurance. They screen applications,
issue agent/agency licenses, track appointments, process appointment renewals and
monitor regulatory requirements for licensing. They respond to all informational
requests about agents. There are approximately 177,000 insurance agents, 1,500 insurance
companies, and 13,000 insurance agencies doing business in Virginia. The Agents
Licensing Section handles an average of 4,000 telephone calls per month.
Demographic Information: 2008 House Joint Resolution No. 196 required the Bureau
of Insurance to collect certain demographic and other information
for a period of two years commencing July 1, 2008 from agent licensing examination
candidates as follows:
- Virginia Demographics Report
- July 1, 2008 - June 30, 2009
- July 1, 2008 - Dec. 31, 2009
- July 1, 2008 - June 30, 2010
- Jan. 1, 2009 - June 30, 2009
- July 1, 2010 - June 30, 2011
Demographic Information: 2011 House Joint Resolution 586 required the Bureau of
Insurance to collect certain demographic and other information for the period of
July 1, 2011 through July 1, 2015 from agent licensing examination candidates as
follows:
- Virginia Demographics Report
- Virginia Insurance School Summary
- Jan. 1, 2009 - June 30, 2009
- July 1, 2008 - Dec. 31, 2009
- July 1, 2008 - June 30, 2010
- July 1, 2010 - March 31, 2011
- Apr. 3, 2011 - Oct. 31, 2011
- Nov. 1, 2011 - Apr. 30, 2012
Automated Systems: This section is responsible for oversight of all the computer-based
systems utilized within the Bureau of Insurance.
Agent Investigations: This section conducts field examinations of agent activities
and reviews their financial transactions and business practices to ensure they are
in compliance with Virginia insurance laws and regulations.
Administration: This section provides support to the Bureau of Insurance staff.
The section is responsible for the Bureau’s biennial budget, preparation of vouchers
for vendor payments and for reimbursement of travel expenses, assists with personnel
functions, procurement, Bureau payroll, and leave keeping. Administration also administers
the Bureau’s education program.
Administrative Tax: This section is directly responsible for the collection and
audit of premium license tax, assessment for the maintenance of the Bureau, the
Fire Programs Fund Assessment, the Flood Assessment, the Help Eliminate Auto Theft
(HEAT) Assessment, the Fraud Unit, the Managed Care Health Insurance Plan Assessment
(MCHIP) and retaliatory taxes. The Administrative Tax Division processes several
thousand tax and assessment filings from insurers and generally collects revenues
in excess of $350 million. The Administrative Tax Division is also responsible for
processing surplus lines insurance filings from nearly 800 licensed brokers.
Settlement Agents: This section registers and conducts field examinations of title
settlement agent activities, as well as reviews financial transactions and business
practices to ensure compliance with Virginia laws and regulations.