reglab/statecodes huggingface dataset:
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3719. Forms of credit life insurance and credit accident and sickness insurance

A. Credit life insurance and credit accident and sickness insurance shall be issued only in the following forms:
1. Individual policies of life insurance issued to debtors on the term plan;
2. Individual policies of accident and sickness insurance issued to debtors on a term plan or disability benefit provisions in individual policies of credit life insurance;
3. Group policies of life insurance issued to creditors providing insurance upon the lives of debtors on the term plan;
4. Group policies of accident and sickness insurance issued to creditors on a term plan insuring debtors or disability benefit provisions in group credit life insurance policies to provide such coverage.
B. A policy of group credit life insurance or group credit accident and sickness insurance may be issued to a creditor or its parent holding company or to a trustee, trustees or agent designated by two or more creditors, which creditor, holding company, affiliate, trustee, trustees or agent shall be deemed the policyholder, to insure debtors of the creditor or creditors, subject to the following requirements:
1. The debtors eligible for insurance under the policy shall be all of the debtors of the creditor or creditors, or all of any class or classes of the group. The policy may provide that the term "debtors" shall include (i) borrowers of money or purchasers of goods, services or property for which payment is arranged through a credit transaction; (ii) the debtors of one or more subsidiary corporations; and (iii) the debtors of one or more affiliated corporations, proprietors or partnerships if the business of the policyholder and of such affiliated corporations, proprietors or partnerships is under common control.
2. The premium for the policy shall be paid by the policyholder, either from the creditor's funds, or from charges collected from the insured debtors, or from both. Except as provided in subdivision 3 of this subsection, a policy on which no part of the premium is to be derived from the collection of such identifiable charges must insure all eligible debtors.
3. Credit life insurance and credit accident and sickness insurance must be offered to all eligible debtors of a creditor except those for whom evidence of individual insurability is not satisfactory to the insurer.
Code 1950, § 38-428(6); 1950, p. 1001; 1952, c. 317, § 38.1-480; 1960, c. 272, § 38.2-3702; 1962, c. 154; 1975, c. 69; 1982, c. 223, § 38.1-482.3:1; 1983, c. 182; 1986, c. 562; 1987, c. 520; 1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3720. Amount of credit life insurance and credit accident and sickness insurance

A. Credit life insurance. 1. Where an indebtedness is repayable in substantially equal installments, the amount of credit life insurance shall at no time exceed the actual amount of unpaid indebtedness.
2. Notwithstanding the provisions of subdivision A 1, insurance on agricultural credit transaction commitments not exceeding one year in duration may be written up to the amount of the loan commitment, on a nondecreasing or level-term plan.
3. Notwithstanding the provisions of subdivision A 1 of this subsection, or any other subsection, insurance on educational credit transaction commitments may be written for the amount of the loan commitment.
B. Credit accident and sickness insurance. -- The total amount of periodic indemnity payable by credit accident and sickness insurance in the event of disability, as defined in the policy, shall not exceed the aggregate of the periodic scheduled unpaid installments of the indebtedness; and the amount of each periodic indemnity payment shall not exceed the original indebtedness divided by the number of periodic installments.
C. Maximum aggregate provisions. -- A provision in a credit life insurance or credit accident and sickness insurance policy or certificate issued thereunder that sets a maximum limit on total benefits payable thereunder shall apply only to that specific indebtedness for which such policy or certificate was issued.
D. The amount of credit life insurance on an indebtedness of any debtor shall not exceed $70,000 with any one insurance company.
1960, c. 67, § 38.1-482.4; 1972, c. 527, §§ 38.2-3703, 38.2-3704; 1982, c. 223; 1986, c. 562; 1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3722. Variable interest rate indebtedness; amount; disclosure; refunds

A. Notwithstanding the terms of § 38.2-3720, if the credit transaction provides for a variable interest rate and the insurance premiums are calculated and charged on a single premium basis, the initial amount of insurance coverage shall not exceed the scheduled amounts of unpaid indebtedness based upon the initial contract interest rate; and the death benefit shall be equal to the scheduled amount of insurance at the date of death or the amount required to liquidate the indebtedness in accordance with the terms of the contract of indebtedness, whichever is greater. If the actual interest rate charged at any time exceeds the original contract interest rate, the term of the insurance shall continue without additional charge for a period not to exceed three months. No additional premiums shall be charged for any additional coverage provided beyond that included in the single premium charge.
B. Each individual policy or group certificate of credit insurance issued in connection with credit transactions involving variable interest rates shall include a disclosure (i) that the death benefit shall in no case be less than the insured scheduled amount of coverage or the amount required to liquidate the insured indebtedness in accordance with the terms of the contract of indebtedness, whichever is greater; and (ii) that the term of insurance shall continue for a period not to exceed three months if the actual interest rate charge at any time exceeds the original contract interest rate.
C. Each individual policy or group certificate of credit insurance issued in connection with credit transactions involving variable interest rates shall provide that in the event of termination of the insurance prior to the original scheduled maturity date of the indebtedness, a refund of any amount paid by the debtor for such insurance shall be made in accordance with § 38.2-3729. Such refund shall be based on the terms of the original loan and the actual elapsed time.
For a loan with a term of more than sixty-one months, computation of such refund using the actuarial method shall be deemed to comply with the requirements hereof. For a loan with a term of sixty-one months or less, computation of such refund using the Rule of 78 shall be deemed to comply with the requirement hereof.
1984, c. 664, § 38.1-482.4:2; 1985, c. 234, § 38.2-3705; 1986, c. 562; 1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3728. Use of rates

A. Use of prima facie rates. An insurer that files rates or has rates on file that are not in excess of the prima facie rates set forth in § 38.2-3726 or published as set forth in § 38.2-3727, to the extent adjusted pursuant to § 38.2-3730, may use those rates without further proof of their reasonableness.
B. Use of rates higher than prima facie rates. An insurer may file for approval of and use rates that are higher than the prima facie rates set forth in § 38.2-3726 or published as set forth in § 38.2-3727, to the extent adjusted by § 38.2-3730. In order to use these higher rates, it shall be demonstrated to the satisfaction of the Commission that the use of such higher rates will result in a ratio of claims incurred to premiums earned (assuming the use of such higher rates) that is not less than the loss ratios as required by § 38.2-3725 D and E for those accounts to which such higher rates apply and that such upward deviations will not result on a statewide basis for that insurer of a ratio of claims incurred to premiums earned of less than the expected loss ratio underlying the current prima facie rate developed or adjusted pursuant to § 38.2-3730. Deviations effective for 1993 and 1994 for credit life insurance shall be derived based upon a fifty percent loss ratio.
If rates higher than the prima facie rates provided for in §§ 38.2-3726 and 38.2-3727, to the extent adjusted pursuant to § 38.2-3730, are filed for approval, the filing shall specify the account or accounts to which such rates apply. Such rates may be applied on an equitable basis approved by the Commission to only one or more accounts specified by the insurer for which the experience has been less favorable than expected.
C. Approval period of deviated rates.
1. A deviated rate will be in effect for a period of time not longer than the experience period used to establish such rate. In no event will deviated rates remain in effect after the effective date that new prima facie rates are effective as set forth in § 38.2-3730.
2. Notwithstanding subsection A of this section, the prima facie rates shall be employed in the event that the account becomes insured by another insurer.
D. As used in this section:
1. "Experience" means "earned premiums" and "incurred claims" during the experience period.
2. "Experience period" means the most recent period of time for which experience is reported, but not for a period longer than three full years.
3. "Incurred claims" means total claims paid during the experience period, adjusted for the change in claim reserve.
1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3730. Experience reports and adjustment of prima facie rates

A. Each insurer doing insurance business in this Commonwealth shall annually file with the National Association of Insurance Commissioners a report of credit life and credit accident and sickness written on a calendar year basis. Such report shall utilize the Credit Insurance Supplement-Annual Statement Blank as then approved by the National Association of Insurance Commissioners. Such filing shall be made in accordance with and no later than the due date in the Instructions in the Annual Statement.
B. The Commission shall, on a triennial basis, recalculate rates to determine the actual loss ratio for each form of insurance and adjust the prima facie rates, as provided in §§ 38.2-3726 and 38.2-3727, by applying the ratio of the actual loss ratio to the loss ratio standard set forth in § 38.2-3725 to the prima facie rates. The Commission shall publish notice of the adjusted actual statewide prima facie rates to be used by insurers during the next triennium and provide an opportunity for a hearing. As set forth in this section, the following formula shall be used to adjust the prima facie rates:
Actual Loss Ratio
PFR
X
---------------------
Loss Ratio Standard
Where PFR is the prima facie rate as provided in §§ 38.2-3726 and 38.2-3727, the Actual Loss Ratio is the ratio of the incurred claims to the earned premiums at prima facie rates for all companies for the preceding three years as reported in the Annual Statement Supplements and the Loss Ratio Standard is the loss ratio provided in § 38.2-3725.
1992, c. 586; 2015, c. 11; 2022, c. 412.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3731. Claims

A. All claims shall be promptly reported to the insurer or its designated claim representative. The insurer shall maintain adequate claim files. All claims shall be settled as soon as possible and in accordance with the terms of the insurance contract.
B. All claims shall be paid or credited by: (i) electronic means to the account of the claimant to whom payment of the claim is due pursuant to the policy provisions or to an account or person specified by such claimant; or (ii) draft drawn upon the insurer or by check of the insurer to the order of the claimant to whom payment of the claim is due pursuant to the policy provisions, or to a person specified by such claimant.
C. No plan or arrangement shall be used where any person other than the insurer or its designated claim representative shall be authorized to settle or adjust claims. The creditor shall not be designated as claim representative for the insurer in adjusting claims. A group policyholder may, by arrangement with the insurer, draw drafts or checks, or credit by electronic means in payment of claims due to the group policyholder subject to audit and review by the insurer. The insurer shall periodically review claims payments made on its behalf by claim representatives or group policyholders.
1960, c. 67, § 38.1-482.11; 1982, c. 223, § 38.2-3713; 1986, c. 562; 1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3732. Insurer delegation of duties

Any insurer that delegates to a creditor any of its duties under the laws of this Commonwealth or the regulations of this Commission shall be responsible to see that such creditor discharges such duties in accordance with said laws and regulations. A finding by the Commission that either the insurer or its delegee has failed to comply with such requirements shall subject the insurer and creditor to any and all disciplinary actions authorized under this title. Such responsibility shall include but not be limited to a determination that:
1. Proper insurance rates are being charged by the creditor;
2. Proper refunds are being made;
3. Claims are being filed and properly handled;
4. Amounts of insurance payable on death in excess of the amounts necessary to discharge indebtedness are properly distributed; and
5. The creditor is promptly and fairly processing complaints concerning its credit insurance operations and is maintaining proper procedures for and records of complaints processed.
1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3733. Portion of premium may be allowed to creditor; insurance may be provided and serviced at creditor's place of business

A. A portion of the premium for credit life insurance or credit accident and sickness insurance may be allowed by the insurer to a creditor for providing and servicing such insurance. Such portion of the premium so allowed shall not be deemed as a rebate of premium or as interest charges or consideration or an amount in excess of permitted charges in connection with the loan or other credit transaction.
B. All of the acts necessary to provide and service credit life insurance and credit accident and sickness insurance may be performed within the same place of business in which is transacted the business giving rise to the loan or other credit transaction.
1960, c. 67, § 38.1-482.9; 1982, c. 223, § 38.2-3712; 1986, c. 562; 1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3734. License requirements

Any person who, in this Commonwealth, on behalf of an insurer licensed in this Commonwealth, sells, solicits, or negotiates individual or group policies of credit life insurance shall first apply for and obtain a license from the Commission as either a life and annuities insurance agent or as a limited lines credit insurance agent as defined in § 38.2-1800. Any person who, in this Commonwealth, on behalf of an insurer licensed in this Commonwealth, sells, solicits, or negotiates individual or group policies of credit accident and sickness insurance, shall first apply for and obtain a license from the Commission as either a health agent or as a limited lines credit insurance agent as defined in § 38.2-1800 of this title, and shall be required to be appointed to represent such insurer in this Commonwealth as set forth in § 38.2-1833.
1992, c. 586; 2001, c. 706.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3736. Noncontributory coverage

If no specific charge is made to the debtor for credit life or credit accident and sickness insurance, the Commission is granted discretion in applying the provisions of this chapter. Each company must comply with § 38.2-3725 and the filing letter must specifically request an exemption from Virginia law. For purposes of this section, it will be considered that the debtor is charged a specific amount for insurance if an identifiable charge for insurance is disclosed in the credit or other instrument furnished the debtor which sets out the financial elements of the credit transactions, or if there is a differential in finance, interest, service or other similar charges made to debtors who are in like circumstances, except for their insured or noninsured status.
1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 37.1 - Credit Life Insurance and Credit Accident and Sickness Insurance › § 38.2-3738. What laws applicable

In the event of conflict between the provisions of this chapter and other provisions of this title, the provisions of this chapter shall be controlling. Subdivisions 1 and 2 of § 38.2-508 shall not apply to the insurance subject to the provisions of this chapter where application of these subdivisions would conflict with the requirements of any federal agency.
1960, c. 67, § 38.1-482.1; 1972, c. 527, § 38.2-3716; 1982, c. 223; 1986, c. 562; 1992, c. 586.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3800. Scope of chapter

This chapter applies to cooperative nonprofit life benefit companies as defined in § 38.2-3801 and to the classes of insurance and insurance benefits those companies are authorized to provide.
1952, c. 317, § 38.1-496; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3801. Cooperative nonprofit life benefit company defined

A. Any company that (i) is organized without capital stock, (ii) has a representative form of government, (iii) conducts its business under the provisions of this chapter without profit and for the sole benefit of its members and their beneficiaries, (iv) issues benefit certificates or policies of life insurance, annuities, or accident and sickness insurance, or any combination of those classes of insurance, upon its members, and (v) maintains the reserves required in this chapter on all contracts issued by it to its members, shall be a cooperative nonprofit life benefit company.
B. As used in this chapter, "company" means a cooperative nonprofit life benefit company as defined in subsection A of this section.
Code 1950, § 38-467; 1952, c. 317, § 38.1-497; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3802. Continuation of existing companies

Any company licensed and doing business in this Commonwealth on July 1, 1952, may continue to do business in accordance with the powers contained in its certificate of incorporation, subject to the provisions of this chapter, but no such company shall be permitted to extend its powers.
1952, c. 317, § 38.1-498; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3803. Licensing of additional companies prohibited

Any company that was not licensed and doing business in this Commonwealth on July 1, 1952, shall not be issued a license to do the business of insurance in this Commonwealth. On or after July 1, 1952, only a renewal of a license held by the company for the preceding year will be issued.
1952, c. 317, § 38.1-499; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3804. What laws applicable

All companies shall comply with all of the provisions of this title relating to insurance companies generally. In the event of conflict between the provisions of this chapter and other provisions of this title, the provisions of this chapter shall be controlling.
1952, c. 317, § 38.1-502; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3805. General powers of company; limitation on increase in rates

Each company shall make a constitution, laws or bylaws for its government, the admission of its members, the management of its affairs and the fixing and readjustment of the rates of contribution of its members. It may change, add to, or amend the constitution, laws or bylaws and shall have the other powers necessary and incidental to effect the objects and purposes of the company. It may make refunds to its members from any surplus funds of the company, but it may only increase rates or make extra assessments against members whose contracts include provisions for rate increases and extra assessments.
Code 1950, § 38-478; 1952, c. 317, § 38.1-503; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3806. Constitution and bylaws

Each company shall provide in its constitution, laws or bylaws for:
1. A representative form of government for the management of the company, to be carried on either with or without a lodge, or with membership in the lodge optional;
2. A legislative or governing body composed of its officers and representatives to be elected either by the adult members or by delegates elected directly or indirectly by the adult members; and
3. The manner of selecting representatives of the members for membership in its legislative body.
Code 1950, § 38-479; 1952, c. 317, § 38.1-504; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3807. Governing body; board of directors

The governing body of each company shall meet at least once every four years. Meetings of the governing body may be held in any state where the company is authorized to do business. The members of the governing body shall not vote by proxy.
A board of directors to conduct the business of the company shall be elected by the governing body for a period of not more than four years or until the next quadrennial meeting of the body. The board of directors shall elect the officers to conduct the business of the company under its direction. No officer shall be elected for a period beyond that for which the board of directors has been elected.
Code 1950, § 38-480; 1952, c. 317, § 38.1-505; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3808. Filing copies of constitution and bylaws

Each company shall file with the Commission a duly certified copy of its constitution, laws or bylaws and all amendments or additions. Printed copies of the constitution, laws or bylaws, certified by the secretary or corresponding officer of the company, shall be prima facie evidence of their legal adoption and filing.
Code 1950, § 38-481; 1952, c. 317, § 38.1-506; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3809. How a company may become legal reserve life insurer

Any company filing with the Commission a resolution of its board of directors or similar body, or of its legislative body, making a request to become a legal reserve life insurer, upon submitting proof satisfactory to the Commission that the request is properly authorized and that the condition of its business qualifies it under the laws of this Commonwealth to be classed as a legal reserve life insurer, shall become a legal reserve life insurer under the name and the plan provided by proper amendment of its charter or certificate of incorporation.
Code 1950, § 38-477; 1952, c. 317, § 38.1-507; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3810. Institutions maintainable; company a charitable institution

Any company may maintain homes for aged members, or children's homes, hospitals or recreational centers, or any other charitable institution, and may provide for the erection of monuments or memorials to deceased members. Such a company is hereby classified as a charitable institution.
Code 1950, § 38-482; 1952, c. 317, § 38.1-508; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3811. Benefits not subject to process

Any money, other benefit, charity, relief or aid to be paid, provided or rendered by any company shall not be liable to attachment, garnishment or other process, or be seized, taken, appropriated or applied by any legal or equitable process or operation of law to pay any debt or liability of a member, his beneficiary, or any other person who may have a right thereunder, either before or after payment.
Code 1950, § 38-493; 1952, c. 317, § 38.1-510; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3812. Tax on gross premium receipts

The officers of each company shall, at the time of making the annual statement, file with the Commission a sworn statement of its gross premium receipts collected from members residing in this Commonwealth for the preceding year ending December 31. Each company shall pay into the state treasury by March 1 of each year, a tax of one percent on its collected gross premiums. The tax shall be in lieu of all other taxes, state, county or municipal, based on such gross premium receipts. No city, town, municipality or other subdivision of the Commonwealth shall impose any license fee on the company or any of its agents for the privilege of conducting business in any portion of this Commonwealth. In determining such gross premium receipts, the company shall not take credit for any expenditures.
Code 1950, § 38-494; 1952, c. 317, § 38.1-511; 1986, c. 562; 1987, cc. 565, 655.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3813. Suits against company

A suit or an action at law may be instituted against any company in any county or city in this Commonwealth.
Code 1950, § 38-495; 1950, p. 242; 1952, c. 317, § 38.1-512; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3814. Contracts in writing; fees

All contracts of any company for insurance or other benefits shall be in writing. No company or any of its officers or agents shall include in the sum charged a member, any fee, compensation, or other charge. However, a local medical examiner's fee and a policy fee on accident and sickness contracts may be charged.
Code 1950, § 38-484; 1952, c. 317, § 38.1-514; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3815. What benefits policies may provide

Any company may provide for (i) stipulated premiums, (ii) death, annuity, endowment and disability benefits, and (iii) cash surrender and loan values to an amount not exceeding the reserve, or its equivalent, in paid-up or extended term insurance, based upon the mortality standards set forth in this chapter.
Code 1950, § 38-483; 1952, c. 317, § 38.1-515; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3816. Policies companies may issue; reserves required; provisions concerning increase of rates and extra assessments

Any company may issue contracts of life, accident and sickness insurance or combinations of them. The reserves for such policies or contracts shall be based upon the American Experience Table of Mortality, with an interest assumption of no more than four percent, or some higher standard, or upon any minimum standard allowed by law in this Commonwealth for legal reserve life insurers. It may provide in its laws or bylaws and membership contracts that the rates shall not be increased or extra assessments made.
Code 1950, § 38-488; 1952, c. 317, § 38.1-516; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3817. Paid-up insurance or extended term insurance

Any company shall provide for automatic paid-up or extended term insurance in the event of the default in premium payments of any contract that has been in force for at least two years from the date of issue. The amount of such insurance shall not exceed the amount which the reserve that is credited to the member will purchase. The company shall carry the liability on its books.
Code 1950, § 38-486; 1952, c. 317, § 38.1-517; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 38 - Cooperative Nonprofit Life Benefit Companies › § 38.2-3818. Officers and members not individually liable for payment

Officers and members of the supreme, grand or any subordinate body of any company shall not be individually liable for the payment of any disability or death or other benefits provided for in the laws, bylaws and contracts of the company. Benefits shall be payable out of the funds of the company and in the manner provided by its laws and bylaws.
Code 1950, § 38-487; 1952, c. 317, § 38.1-519; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3900. Scope of chapter

This chapter applies to mutual assessment life, accident and sickness insurers and to the classes of insurance written by these insurers.
1985, c. 400, § 38.1-549.1; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3901. Definitions

As used in this chapter:
"Mutual assessment life, accident and sickness insurance" means life, accident and sickness insurance and annuities provided by an insurer which has a right to assess its members for contributions and which is licensed under this chapter.
"Mutual assessment life, accident and sickness insurer" means a nonstock corporation that provides life, accident or sickness insurance or annuity contracts for which the following provisions are applicable:
1. All benefits payable to beneficiaries are mainly provided for by (i) assessments upon members made when needed by the insurer, or (ii) advance premiums paid at fixed dates, with the right reserved by the insurer to make additional assessments; or
2. If definite periodic premiums are used without the right to make additional assessments, premiums must be sufficient to pay average claims in accordance with standards applicable to insurers licensed pursuant to Chapter 10 (§ 38.2-1000 et seq.) of this title.
1985, c. 400, § 38.1-549.2; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3902. Classes of insurance that may be written by mutual assessment life, accident and sickness insurers

The following classes of insurance can be written by mutual assessment life, accident and sickness insurers:
Category A
1. Life insurance as defined in § 38.2-102;
2. Industrial life insurance as defined in § 38.2-104; and
3. Accident and sickness insurance as defined in § 38.2-109 except Medicare supplement insurance as defined in § 38.2-3600.
Category B
1. Credit life insurance as defined in § 38.2-103;
2. Variable life insurance as defined in § 38.2-105;
3. Credit accident and sickness insurance as defined in § 38.2-108; and
4. Medicare supplement insurance as defined in § 38.2-3600.
Category C
1. Annuities as defined in § 38.2-106; and
2. Variable annuities as defined in § 38.2-107.
1985, c. 400, § 38.1-549.3; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3903. What laws applicable

Except as provided in this section, all mutual assessment life, accident and sickness insurers shall comply with all provisions of this title relating to insurers generally. Until July 1, 1990, those classes of insurance specified in Category A of § 38.2-3902 shall be exempt from this title, except this chapter and Chapters 5 and 6 of this title. In the event of conflict between the provisions of this chapter and other provisions of this title, the provisions of this chapter shall be controlling.
1985, c. 400, § 38.1-549.4; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3904. Conversion of mutual assessment life, accident and sickness insurers

A. Any mutual assessment life, accident and sickness insurer which chooses to remove itself from the provisions of this chapter by becoming an insurer licensed pursuant to Chapter 10 (§ 38.2-1000 et seq.) of this title may do so by meeting the requirements of that chapter. When applying for a license pursuant to Chapter 10, an insurer shall submit an application to the Commission that shows that each requirement of Chapter 10 has been met. If the applicant does not meet these requirements, the applicant may submit for approval a plan that includes a schedule for meeting these requirements. The schedule must provide for compliance with these requirements within five years of the approval of the application. The Commission may grant an additional period in order to achieve compliance with the requirements of Chapter 10 after an informal hearing.
B. If the Commission approves the application, the insurer shall have all the rights, privileges and responsibilities of a licensed insurer not subject to the provisions of this chapter.
C. The Commission, upon failure of the applicant to comply with the terms of an approved schedule, may require the applicant to adhere to the requirements of this chapter.
1985, c. 400, § 38.1-549.5; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3905. Incorporation of companies

Any insurer that was licensed and transacting in this Commonwealth the business of mutual assessment life, accident and sickness insurance on July 1, 1985, may continue to transact that business in accordance with its license.
1985, c. 400, § 38.1-549.6; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3906. Licensing of additional companies prohibited

Any insurer that was not licensed and engaged in the business of mutual assessment life, accident and sickness insurance in this Commonwealth under the provisions of former Title 38.1 on July 1, 1952, shall not be issued a license pursuant to this chapter to transact the business of insurance in this Commonwealth. On or after that date a license shall not be issued except for renewal of a license held by the insurer for the preceding year.
1985, c. 400, § 38.1-549.7; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3907. Directors; terms; annual meetings; voting; executive committee

A. As provided in its certificate of incorporation and as provided in its bylaws, the management of any mutual assessment life, accident and sickness insurer shall be vested in a board of at least five directors, each of whom shall be a member of the insurer. Each director shall hold office for one year or for a longer term if specified by the bylaws, and thereafter until his successor is elected and has qualified. Vacancies on the board may be filled for the unexpired term by the remaining directors.
B. The annual meeting of the members of the insurer shall be held as provided by the certificate of incorporation or the bylaws. A quorum shall consist of the larger of ten members or the number of members specified by either the certificate of incorporation or bylaws. In all meetings of members, each member of the insurer shall be entitled to one vote, or a number of votes based upon insurance in force, the number of policies held, or the amount of premiums paid as provided in the bylaws of the insurer. Votes by proxy may be received in accordance with the certificate of incorporation or the bylaws. The date of the annual meeting shall be stated in the policy, or notice of the date and location of the annual meeting shall be provided annually.
C. Notwithstanding the provisions of the charter of any insurer to the contrary, upon a resolution adopted by the board of directors of the insurer and approved by a majority of its members present in person or by proxy, the directors of the insurer may be divided into classes, and only a portion may be elected each year. Pursuant to the provisions of § 13.1-869 the directors may appoint an executive committee to exercise the powers and perform the duties set out in that section.
1985, c. 400, § 38.1-549.8; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3908. Officers

Unless the certificate of incorporation provides otherwise, the directors shall elect from their number a president and may elect a chairman, and shall also elect a secretary and a treasurer and any additional officers as they determine necessary, who may or may not be members of the insurer. The offices of secretary and treasurer may be held by one person. Unless otherwise provided in the certificate of incorporation, the term of these officers shall be not less than one year nor more than three years or until their successors are elected or qualified.
1985, c. 400, § 38.1-549.9; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3909. Inspection of books and papers

The books and papers of the insurer shall be open for examination by members or their representatives at all reasonable times.
1985, c. 400, § 38.1-549.10; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3910. Policy forms to be filed

Every mutual assessment life, accident and sickness insurer shall file with the Commission a copy of all policy forms and standard endorsements which the insurer intends to use. These companies shall be exempt from form approval requirements regarding those lines of insurance specified in Category A of § 38.2-3902 until July 1, 1990.
1985, c. 400, § 38.1-549.11; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3911. Time limit on certain defenses

Every insurance policy or contract shall contain a provision that after two years from the effective date of the policy or contract, only fraudulent misstatements in the application may be used to void the policy or contract or deny any claim for a loss incurred or a disability that starts after the two-year period. This provision may be omitted if the incontestable clause referred to in § 38.2-3912 is included.
1985, c. 400, § 38.1-549.12; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3912. Incontestability of policies

Every insurance policy or contract shall contain a provision that it shall be incontestable after it has been in force during the lifetime of the insured for two years from its date of issuance, except for nonpayment of the policy's assessments or premiums. In the case of life policies and at the option of the insurer, provisions relating to benefits in the event of disability and provisions which grant additional insurance specifically against death by accident or accidental means, may be excepted in the incontestability provision. This provision may be omitted if the time limit on the certain defense clause specified in § 38.2-3911 is included.
1985, c. 400, § 38.1-549.13; 1986, c. 562; 1987, c. 520.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3913. Required grace periods

Each insurance policy shall have a provision that the insured is entitled to a thirty-one-day period within which the payment of any premium or assessment after the first payment may be made. At the option of the insurer this may be subject to a reasonable interest charge for the number of days of grace elapsing before the payment of the premium or assessment. The provision shall also state that during the grace period the policy shall continue in full force, but if a claim arises under the policy during the grace period before the overdue premium or assessment is paid, the amount of such premium or assessment, with applicable interest, may be deducted from any amount payable under the policy in settlement.
1985, c. 400, § 38.1-549.14; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3914. Policy to specify amount of payment and when to be paid

Each policy shall specify the sum of money payable upon the occurrence of the insured risk. Each policy shall also state that payment shall be made within thirty days after showing proof of the occurrence of the insured risk.
1985, c. 400, § 38.1-549.15; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3915. Assessment contract

Contracts issued by a mutual assessment life, accident and sickness insurer shall be on forms prescribed by the insurer and shall be substantially uniform among members of the respective classes of insurance written by the insurer. Each member shall pay his pro rata share of all losses or damages sustained, expenses of operations of the insurer, and the maintenance of an adequate surplus to policyowners as determined by the board of directors. Periodic assessments may be collected as advance premiums, or by past assessments, or by both methods. The amount of assessments shall be established by the board of directors of the insurer. When a contract is subject to assessment, the contingent liability of each member of an insurer shall be clearly stated in the contract. Contracts omitting the right of contingent assessment shall be deemed to be nonassessable.
1985, c. 400, § 38.1-549.16; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3916. Classification of risks; rates

Any insurer writing mutual assessment life, accident and sickness insurance may classify the risks insured against, and fix the rate of assessment of premium for such insurance in accordance with the classifications.
1985, c. 400, § 38.1-549.17; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3917. Right to limit assessment liability; when contingent assessment liability waived

Any mutual assessment life, accident and sickness insurer having a surplus to policyowners of at least $100,000 may limit the contingent assessment liability of members, or classes of members, to an amount not more than 1 additional current annual assessment. Any insurer having surplus to policyowners of at least $300,000 may issue contracts omitting the right to make contingent assessment against members if reserves for these contracts are established and maintained in the same manner as would be required by an insurer licensed pursuant to Chapter 10 (§ 38.2-1000 et seq.) of this title. Contracts so issued shall be treated in all respects as nonassessment contracts.
1985, c. 400, § 38.1-549.18; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3918. Notice of assessment; how given

After an assessment is made, the insurer shall give each member subject to the assessment written notice stating the amount of the assessment and the date when payment is due. Except where the provisions of the bylaws or the policy provide otherwise, the time of payment shall not be less than thirty days nor more than sixty days from the service of the notice. This notice may be served personally or mailed with the United States Postal Service. If sent by mail, notice shall be considered given at the time of mailing and shall be sent to the member at his address shown on the insurer's records.
1985, c. 400, § 38.1-549.19; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3919. Agents' licenses required

A. Except as provided in subsection B, each individual who is a resident of this Commonwealth who desires to obtain a license to sell, solicit, or negotiate any of the classes of insurance specified in § 38.2-3902 shall obtain that license only when that individual has passed a written examination prescribed by the Commission.
B. Any individual who is licensed prior to July 1, 1990, and whose license is restricted to the classes of insurance specified in Category A of § 38.2-3902 shall be exempted from the written examination provision noted above.
C. Business entities, as defined in § 38.2-1800, whether resident or nonresident, as well as nonresident individuals who desire to obtain a license to sell, solicit, or negotiate any of the classes of insurance specified in § 38.2-3902 shall be eligible for licensing upon satisfaction of the requirements set forth in § 38.2-1836.
1985, c. 400, § 38.1-549.20; 1986, c. 562; 2001, c. 706.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3920. Surplus to policyowners

A. A mutual assessment life, accident and sickness insurer shall have a minimum surplus to policyowners of $100,000.
B. In order to write the classes of insurance referred to in Category C of § 38.2-3902, minimum surplus to policyowners shall be $800,000.
1985, c. 400, § 38.1-549.21; 1986, c. 562.
2023 Code of Virginia › Title 38.2 - Insurance › Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers › § 38.2-3921. Limitation on single risk to be assumed

No single risk shall be assumed by a mutual assessment life, accident and sickness insurer if the risk exceeds fifteen percent of the company's total surplus to policyowners. Any risk or portion of any risk that has been reinsured in accordance with § 38.2-3922 shall be deducted in determining the limitation of risk prescribed by this section. For the purposes of this section the amount of surplus to policyowners shall be determined on the basis of the last sworn statement of the insurer, or the last report of examination filed with the Commission, whichever is more recent at the time the risk is assumed. Mutual assessment life, accident and sickness insurers licensed on July 1, 1985, shall conform to this limitation by July 1, 1990. Until July 1, 1986, the single risk limit, after deducting for reinsurance, shall be twenty-five percent of surplus to policyowners. Between July 1, 1986, and July 1, 1988, single risk limits, after deducting for reinsurance, shall be twenty percent of surplus to policyowners. This section shall not apply to insurance coverages defined in §§ 38.2-108 and 38.2-109 and Medicare supplement insurance defined in § 38.2-3600.
1985, c. 400, § 38.1-549.22; 1986, c. 562.