§ 38.2-3119. Limitation on { 38.2-3118
A. The provisions of § 38.2-3118 shall not apply to any proportionate part of the proceeds of any such policy or supplemental contract mentioned in § 38.2-3118 arising or resulting from premiums paid by the beneficiary. The proportionate part of the proceeds shall be determined by comparing the total premiums paid for the policy, without interest, with the premiums for the policy, without interest, paid by the beneficiary.
B. Notwithstanding the other provisions of this section, an insurer who (i) has no written notice of any claim that premiums have been paid by the beneficiary and (ii) has no written notice of an adverse claim of any other character under this section, shall be protected in making or withholding payments pursuant to the terms of a policy or supplemental agreement.
C. Notwithstanding the other provisions of this section, upon an insurer's acceptance of proof that premiums have been paid by the beneficiary and the insurer's payment of the corresponding proportionate part of the proceeds of the policy or supplemental agreement, the insurer's payment shall constitute full release of the insurer from all liability with respect to the proportionate part of the proceeds of the policy or supplemental agreement.
(Code 1950, § 38-116; 1952, c. 317, § 38.1-445; 1986, c. 562.)
Sections: Previous 38.2-3113.3 38.2-3114 38.2-3115 38.2-3115.1 38.2-3116 38.2-3117 38.2-3118 38.2-3119 38.2-3120 38.2-3121 38.2-3122 38.2-3123 38.2-3124 38.2-3125 38.2-3126 NextLast modified: April 16, 2009