The national guides cover the P&C basics: perils, hazards, indemnity, ACV, coinsurance and contract law. Virginia's exams also test the Virginia standard fire policy (Va. Code 38.2-2105), the owner-occupied dwelling cancellation law (38.2-2114), commercial notice rules (38.2-231), required offers and notices, and liability-policy rules. This guide covers those.

Binders (38.2-2112)

• Binders may be used for up to 60 days while a fire policy is issued.
• A binder can't waive standard provisions. Only its cancellation term and hour of inception can be changed.

The Virginia standard fire policy (38.2-2105)

The standard provisions are fixed. No change is allowed in their wording, order or line numbers.

Owner-occupied dwellings (38.2-2114)

Scope

• Applies to owner-occupied dwelling and homeowners policies.
• New business in force under 90 days is exempt, unless it's a renewal.
• Policies written through the Virginia Property Insurance Association (VPIA) are exempt.

Permitted cancellation reasons

• nonpayment
• a related crime conviction
• fraud or material misrepresentation
• willful or reckless acts found on inspection
• physical changes that make the property uninsurable
• a completed foreclosure sale

A wind claim isn't a permitted reason.

Notice

• 30 days for cancellation or nonrenewal, or 10 days for nonpayment.
• The notice mentions possible coverage through the VPIA.
• The insured may ask the Commissioner to review the action within 10 days. The policy stays in force during the review, except for nonpayment.
• Notices are mailed with USPS proof. A bulk mailing certificate doesn't count. Copies are kept 1 year (38.2-2113).

Nonrenewal can't be based solely on:

• a claim mainly from natural causes
• claims more than 60 months old
• a coverage inquiry, which also can't be reported as a claim
• being a foster parent

Credit used in a nonrenewal must come from a report within 120 days.

Required offers and notices for property policies

• Flood exclusion notice: flood is excluded, and information is available from the insurer, the agent or the NFIP (38.2-2125).
• Earthquake notice: "earthquake coverage is excluded unless purchased by endorsement" (38.2-2129).
• Must be offered:
  • ordinance or law coverage (38.2-2124)
  • sewer and drain backup (38.2-2120)
  • diminished value of repaired scheduled personal property (38.2-2120)
• Volunteer fire department service charges are covered for at least $250 (38.2-2130).
• Replacement cost: the insured may take ACV first, then claim the difference within 6 months of the last ACV payment (38.2-2119).
• Assignment of benefits: since 2025, post-loss benefits can't be assigned without the insurer's consent. The insured may still direct payment to a contractor (38.2-2131).
• Fire insurance discrimination: refusing based on age, sex, race, marital status, sexual orientation, gender identity, lawful occupation and similar factors is prohibited (38.2-2115).

Commercial policies (38.2-231)

• Cancellation or nonrenewal notice: at least 45 days, or 15 days for nonpayment, to the first named insured.
• Premium increases over 25%, and reductions in liability coverage, need 45 days' notice.
• The insured may ask for review within 15 days.
• A business auto policy can't be cancelled just for lack of supporting business.
• Notice isn't required for large commercial risks or retrospectively rated policies.

Liability policies (38.2-2200, 38.2-2226)

• The insured's bankruptcy doesn't relieve the insurer.
• An unsatisfied judgment can be collected from the insurer, up to the limit.
• To rely on a breach of a policy condition, the insurer must notify the claimant within 45 days after discovering the breach or the claim. Otherwise the defense is waived.
• A reservation of rights must be given at least 30 days before trial.

Residual market: VPIA (38.2-2700 to 38.2-2704)

• The Virginia Property Insurance Association makes basic property insurance available. That's standard fire plus extended coverage.
• Qualified property: at a fixed location, code-compliant, and not used for manufacturing.
• Applicants may get an inspection.
• All insurers writing basic property insurance participate.
• Its rates and forms need Commission approval. The VPIA isn't an insurer.

Rates

Rates may not be excessive, inadequate or unfairly discriminatory (38.2-1904).

Common exam traps

• Fire binders last 60 days at most.
• Standard fire policy: 60-day vacancy suspension, sworn proof within 60 days, payment 60 days after proof, suit within 2 years.
• Owner-occupied dwellings: 30 days' notice, or 10 for nonpayment. Review must be requested within 10 days.
• Commercial: 45 days' notice, or 15 for nonpayment.
• Flood and earthquake exclusions need written notices.