Code of Virginia - Title 38.2 Insurance - Section 38.2-3316 Provisions prohibited

§ 38.2-3316. Provisions prohibited

No individual life insurance policy shall be delivered or issued for delivery in this Commonwealth if it contains any provision:

1. Limiting the time within which any action at law or in equity may be commenced to less than one year after the cause of action accrues;

2. For any mode of settlement at maturity, of less value than the amount insured on the face of the policy plus any dividend additions, less any indebtedness to the insurer on or secured by the policy, and less any premium or portion of any premium, that may by the terms of the policy be deducted. This paragraph shall not apply to any nonforfeiture provision that employs the cash value less any indebtedness to purchase paid-up or extended insurance, and shall not prohibit the issuance of policies providing for a limitation in the amount payable under certain specified conditions;

3. For forfeiture of the policy for failure to repay any loan on the policy, or to pay interest on any policy loan, while the total indebtedness on the policy, including interest, is less than the loan value of the policy; or

4. To the effect that the agent soliciting the insurance is the agent of the person insured under the policy, or making the acts or representations of the agent binding upon the person insured under the policy.

(Code 1950, § 38-386; 1952, c. 317, § 38.1-406; 1956, c. 417; 1986, c. 562.)

Sections:  Previous  38.2-3309  38.2-3310  38.2-3311  38.2-3312  38.2-3313  38.2-3314  38.2-3315  38.2-3316  38.2-3317  38.2-3318  38.2-3318.1  38.2-3319  38.2-3319.1  38.2-3319.2  38.2-3320  Next

Last modified: April 3, 2009