This report is the result of a study recommended by David B. Ayres, Jr., Comptroller, and Walter W. Craigie, Jr., Treasurer of Virginia. In a memorandum prepared by Mr. Ayres and Mr. Craigie at the Governor's request, they cited a material restriction of the insurance market in Virginia and recommended that the Virginia Advisory Legislative Council undertake an intensive study of casualty and property insurance problems existing in Virginia.

As a result of the memorandum prepared for the Governor, he requested the council undertake a study of the Insurance Industry. House Joint Resolution No. 32 was also approved during the 1971 Special Session of the General Assembly.

The request by the Governor and passage of the Joint Resolution directing the Council to make a study of the Insurance Industry resulted in the creation of the Insurance Industry Study Committee. Senator Edward E. Willey of Richmond was selected to Chair the Committee and other members included: Delegate M. Caldwell Butler, Roanoke, Delegate Russell M. Carneal, Williamsbμrg, Grady M. Chesson, Lynchburg, Senator Henry E. Howell, Jr., Norfolk, Bernard Hulcher, Richmond, Charles H. Longfield, Richmond, T. Grayson Maddrea, Richmond, Senator Willard J. Moody, Portsmouth, Delegate Stanley A. Owens, Manassas, Ray M. Paul, Richmond, Delegate A. L. Philpott, Bassett, Sidney J. Rosenbaum, Martinsville, Paul G. Stickler, Richmond, J. Theron Timmons, Norfolk, Delegate Carrington Williams, Fairfax, and D. T. Zimmerman, Charlottesville. Ex officio members included Everette S. Francis, Commissioner of Insurance, Garland L. Hazelwood, Jr., Actuary-Fire and Casualty, Bureau of Insurance, A. Grey Staples, Jr., General Counsel, State Corporation Commission and Henry M. Massie, Assistant Attorney General. Also participating in the study were Walter W. Craigie, Jr., Treasurer of Virginia and David B. Ayres, Jr., State Comptroller.

The Virginia Advisory Legislative Council and the Division of Statutory Research and Drafting made staff and facilities available to carry out this study. L. Willis Robertson, Jr., was assigned as Secretary and Counsel for the Committee. Wildman S. Kincheloe, Jr., and Laurens Sartoris also acted as counsel to assist in carrying out the study.

At the first meeting of the Committee on April 7, 1971, a general plan of how the study should proceed was outlined as follows:

1. The members of the Committee should first acquaint themselves with general background information relating to insurance problems in Virginia.

2. Public hearings would be held to afford the public an opportunity to express their views regarding insurance problems in Virginia.

3. Other hearings would be held to allow insurance companies, agents and adjusters to air their views on insurance problems.

4. The full Committee would be divided into Subcommittees to better study the major problems brought to the attention of the Committee during the course of the hearings.

Pursuant to this plan the full Committee held six hearings. The first four hearings were held in four different areas of the State (Annandale, Richmond, Roanoke and Norfolk) and were devoted to the public's speaking on casualty and property insurance problems. The fifth hearing, held in Richmond on June 22, 1971, representatives of insurance companies were given an opportunity to present their views. On July 13, 1971, at the last hearing of the Committee, insurance agents and adjusters gave their views on insurance problems in Virginia.

At the August 17, 1971 meeting, after hearing testimony from representatives of the United States Department of Transportation and the Senate Commerce Committee on proposed federal no-fault legislation, the full Committee was divided into the following four Subcommittees:

1. The No-Fault Subcommittee,

2. The Open Competition Subcommittee,

3. The Highway Safety Subcommittee,

4. The Other Matters Subcommittee.

The Subcommittees met on numerous occasions and after making some initial policy decisions, spent much of their time working on the legislation to accompany their recommendations to the full Committee. After acting on the recommendations of the four Subcommittees, the Committee made its Report and recommendations to the Council.

After considering the Report of the Committee, the Council now makes its recommendations.