Title of Regulation: 14VAC5-10. Accident Airtrip Insurance (repealing 14VAC5-10-10).

Statutory Authority: §§ 12.1-13 and 38.2-223 of the Code of Virginia.

Public Hearing Information: A public hearing will be held upon request.

Public Comment Deadline: April 15, 2016.

Agency Contact: Katie Johnson, Policy Advisor, Policy and Compliance Division, Bureau of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9688, FAX (804) 371-9873, or email katie.johnson@scc.virginia.gov.

Summary:

This action repeals 14VAC5-10, which is unnecessary because the use of mechanical vending machines in public airports for the solicitation of applications for and the issuance of accident airtrip insurance policies is obsolete.

AT RICHMOND, MARCH 1, 2016

COMMONWEALTH OF VIRGINIA, ex rel.

CASE NO. INS-2016-00045

STATE CORPORATION COMMISSION

Ex Parte: In the matter of Repealing the

Rules Governing Accident Airtrip Insurance

ORDER TO TAKE NOTICE

Section 12.1-13 of the Code of Virginia ("Code") provides that the State Corporation Commission ("Commission") shall have the power to promulgate rules and regulations in the enforcement and administration of all laws within its jurisdiction, and § 38.2-223 of the Code provides that the Commission may issue any rules and regulations necessary or appropriate for the administration and enforcement of Title 38.2 of the Code.

The rules and regulations issued by the Commission pursuant to § 38.2-223 of the Code are set forth in Title 14 of the Virginia Administrative Code. A copy may also be found at the Commission's website: http://www.scc.virginia.gov/case.

The Bureau of Insurance ("Bureau") has submitted to the Commission a proposal to repeal the rules set forth in Chapter 10 of Title 14 of the Virginia Administrative Code, entitled "Accident Airtrip Insurance," 14 VAC 5-10-10 ("Rules").

The Virginia General Assembly enacted § 38.2-1807 of the Code in 1958. This Code section allows insurers that are qualified to transact business in the Commonwealth of Virginia and to write accident airtrip insurance to solicit applications for and issue accident airtrip insurance policies by means of mechanical vending machines in public airports. In addition, this Code section requires that such mechanical vending machines be under the supervision of an appointed agent and that the insurer comply with all requirements prescribed by the Commission for the conduct of this business. Chapter 10 was promulgated as a result. The repeal of Chapter 10 is necessary because the use of mechanical vending machines in public airports for the solicitation of applications for and the issuance of accident airtrip insurance policies is now obsolete.

NOW THE COMMISSION is of the opinion that Chapter 10 of Title 14 of the Virginia Administrative Code should be considered for repeal.

Accordingly, IT IS ORDERED THAT:

(1) The proposal that Chapter 10 of Title 14 of the Virginia Administrative Code be repealed, is attached hereto and made a part hereof.

(2) All interested persons who desire to comment in support of or in opposition to, or request a hearing to oppose repealing Chapter 10 of Title 14 of the Virginia Administrative Code, shall file such comments or hearing request on or before April 15, 2016, with Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218. Interested persons desiring to submit comments electronically may do so by following the instructions at the Commission's website: http://www.scc.virginia.gov/case. All comments shall refer to Case No. INS-2016-00045.

(3) If no written request for a hearing on the proposal to repeal Chapter 10 of Title 14 of the Virginia Administrative Code is received on or before April 15, 2016, the Commission, upon consideration of any comments submitted in support of or in opposition to the proposal, may repeal the Rules.

(4) AN ATTESTED COPY hereof, together with a copy of the proposal to repeal the Rules, shall be sent by the Clerk of the Commission to the Bureau in care of Deputy Commissioner Althelia P. Battle, who forthwith shall give further notice of the proposal to repeal the Rules by mailing a copy of this Order, together with the proposal, to all insurers qualified to transact business in the Commonwealth and to write accident airtrip insurance, as well as to all interested persons.

(5) The Commission's Division of Information Resources forthwith shall cause a copy of this Order, together with the proposal to repeal the Rules, to be forwarded to the Virginia Registrar of Regulations for appropriate publication in the Virginia Register of Regulations.

(6) The Commission's Division of Information Resources shall make available this Order and the attached proposal to repeal the Rules on the Commission's website: http://www.scc.virginia.gov/case.

(7) The Bureau shall file with the Clerk of the Commission an affidavit of compliance with the notice requirements of Ordering Paragraph (4) above.