{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-1806.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-1806.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-1806.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-1806.html"}],"law_id":83261,"edition_id":1,"section_id":83261,"structure_id":14103,"section_number":"38.2-1806","catch_line":"Interest with respect to credit extended or money lent for premiums on certain policies","history":"Code 1950, \u00a7 38.1-293.1; 1970, c. 370; 1979, c. 513, \u00a7 38.1-327.7; 1980, c. 581; 1985, c. 33; 1986, c. 562; 1987, c. 521; 2001, c. 706.","full_text":"A\n\nAny agent licensed in this Commonwealth to sell, solicit or negotiate property and casualty insurance, mutual assessment property and casualty insurance, or ocean marine insurance may charge interest on credit extended by the agent to the holder of any fire, casualty, surety or marine insurance policy, written or being serviced by or through such agent, for the premium due on such policy. The rate of interest shall not exceed one and one-half percent per month of the unpaid balance. However, the extension of credit or the making of the loan shall not be in conflict with the contract between the agent and the insurer that issues the policy.B\n\nA licensed insurance agent extending credit as authorized in this section shall not be required to comply with the provisions of Chapter 47 (§ 38.2-4700 et seq.) of this title with respect to the licensing of premium finance companies.C\n\nNotwithstanding the provisions of §§ 38.2-2114 and 38.2-2212, if any insured fails to discharge any of his obligations to a licensed insurance agent when due in connection with the payment of any premium for a policy of insurance, that agent may request in writing that the insurer cancel such policy for nonpayment of premium. Within ten business days of the receipt of such written request, which shall also state the amount owed the agent by the policyholder, the insurer shall deliver or mail a written notice of cancellation to the named insured at the address shown in the policy and to any mortgagee or lienholder. This notice shall state the date on which the cancellation shall become effective. That date shall be established by giving at least the number of days notice prior to cancellation that are required by statute or the terms of the policy. Except for statutory requirements and contractual obligations, there shall be no liability on the part of the insurer for improper cancellation under this section if the insurer (i) in good faith relies upon the request of the agent and (ii) gives notice of cancellation in compliance with the provisions of this section.D\n\nThe insurance agent shall have a lien on any return premium for the policy to the extent of the amount owed by the policyholder. Within thirty calendar days of the mailing of the notice of cancellation, the insurer shall forward that amount to the agent and shall forward the remainder, if any, of the return premium to the policyholder.","order_by":null,"text":{"0":{"id":298302,"text":"Any agent licensed in this Commonwealth to sell, solicit or negotiate property and casualty insurance, mutual assessment property and casualty insurance, or ocean marine insurance may charge interest on credit extended by the agent to the holder of any fire, casualty, surety or marine insurance policy, written or being serviced by or through such agent, for the premium due on such policy. The rate of interest shall not exceed one and one-half percent per month of the unpaid balance. However, the extension of credit or the making of the loan shall not be in conflict with the contract between the agent and the insurer that issues the policy.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":298303,"text":"A licensed insurance agent extending credit as authorized in this section shall not be required to comply with the provisions of Chapter 47 (§ 38.2-4700 et seq.) of this title with respect to the licensing of premium finance companies.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":298304,"text":"Notwithstanding the provisions of §§ 38.2-2114 and 38.2-2212, if any insured fails to discharge any of his obligations to a licensed insurance agent when due in connection with the payment of any premium for a policy of insurance, that agent may request in writing that the insurer cancel such policy for nonpayment of premium. Within ten business days of the receipt of such written request, which shall also state the amount owed the agent by the policyholder, the insurer shall deliver or mail a written notice of cancellation to the named insured at the address shown in the policy and to any mortgagee or lienholder. This notice shall state the date on which the cancellation shall become effective. That date shall be established by giving at least the number of days notice prior to cancellation that are required by statute or the terms of the policy. Except for statutory requirements and contractual obligations, there shall be no liability on the part of the insurer for improper cancellation under this section if the insurer (i) in good faith relies upon the request of the agent and (ii) gives notice of cancellation in compliance with the provisions of this section.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":298305,"text":"The insurance agent shall have a lien on any return premium for the policy to the extent of the amount owed by the policyholder. Within thirty calendar days of the mailing of the notice of cancellation, the insurer shall forward that amount to the agent and shall forward the remainder, if any, of the return premium to the policyholder.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":14103,"edition_id":1,"name":"Definitions and General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13203,"metadata":{},"date_created":"2026-06-26 03:46:53","date_modified":"2026-06-26 03:46:53","permalink":{"id":212413,"object_type":"structure","relational_id":14103,"identifier":"1","token":"38.2\/18\/1","url":"\/38.2\/18\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13203,"edition_id":1,"name":"Insurance Agents","identifier":"18","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:26","date_modified":"2026-06-26 03:44:26","permalink":{"id":212411,"object_type":"structure","relational_id":13203,"identifier":"18","token":"38.2\/18","url":"\/38.2\/18\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67482,"structure_id":14103,"section_number":"38.2-1800","catch_line":"Definitions","url":"\/38.2-1800\/","token":"38.2\/18\/1\/38.2-1800","metadata":false},{"id":66272,"structure_id":14103,"section_number":"38.2-1800.1","catch_line":"Proof of residency","url":"\/38.2-1800.1\/","token":"38.2\/18\/1\/38.2-1800.1","metadata":false},{"id":76029,"structure_id":14103,"section_number":"38.2-1801","catch_line":"Person soliciting insurance deemed agent of insurer; prohibition against misrepresenting agency relationship","url":"\/38.2-1801\/","token":"38.2\/18\/1\/38.2-1801","metadata":false},{"id":77079,"structure_id":14103,"section_number":"38.2-1802","catch_line":"Acting as agent for unlicensed insurer prohibited; penalties","url":"\/38.2-1802\/","token":"38.2\/18\/1\/38.2-1802","metadata":false},{"id":76801,"structure_id":14103,"section_number":"38.2-1803","catch_line":"Repealed","url":"\/38.2-1803\/","token":"38.2\/18\/1\/38.2-1803","metadata":false},{"id":69797,"structure_id":14103,"section_number":"38.2-1804","catch_line":"Blank forms","url":"\/38.2-1804\/","token":"38.2\/18\/1\/38.2-1804","metadata":false},{"id":60505,"structure_id":14103,"section_number":"38.2-1805","catch_line":"Acceptance by insurance agents of premiums in arrears; how advance premiums recorded","url":"\/38.2-1805\/","token":"38.2\/18\/1\/38.2-1805","metadata":false},{"id":83261,"structure_id":14103,"section_number":"38.2-1806","catch_line":"Interest with respect to credit extended or money lent for premiums on certain policies","url":"\/38.2-1806\/","token":"38.2\/18\/1\/38.2-1806","metadata":false},{"id":72532,"structure_id":14103,"section_number":"38.2-1807","catch_line":"Repealed","url":"\/38.2-1807\/","token":"38.2\/18\/1\/38.2-1807","metadata":false},{"id":65536,"structure_id":14103,"section_number":"38.2-1808","catch_line":"All agreements to be expressed in contract","url":"\/38.2-1808\/","token":"38.2\/18\/1\/38.2-1808","metadata":false},{"id":59462,"structure_id":14103,"section_number":"38.2-1809","catch_line":"Power of Commission to investigate affairs of persons engaged in insurance business; penalties for refusal to permit investigation","url":"\/38.2-1809\/","token":"38.2\/18\/1\/38.2-1809","metadata":false},{"id":77150,"structure_id":14103,"section_number":"38.2-1810","catch_line":"Report of acts deemed larceny under \u00a7 18.2-111; privileged communications; attorney for the Commonwealth to be informed","url":"\/38.2-1810\/","token":"38.2\/18\/1\/38.2-1810","metadata":false},{"id":85445,"structure_id":14103,"section_number":"38.2-1811","catch_line":"Repealed","url":"\/38.2-1811\/","token":"38.2\/18\/1\/38.2-1811","metadata":false},{"id":87107,"structure_id":14103,"section_number":"38.2-1812","catch_line":"Payment and sharing of commissions","url":"\/38.2-1812\/","token":"38.2\/18\/1\/38.2-1812","metadata":false},{"id":57682,"structure_id":14103,"section_number":"38.2-1812.1","catch_line":"Placement of insurance for public bodies","url":"\/38.2-1812.1\/","token":"38.2\/18\/1\/38.2-1812.1","metadata":false},{"id":66943,"structure_id":14103,"section_number":"38.2-1812.2","catch_line":"Administrative charges in excess of premium prohibited; exceptions","url":"\/38.2-1812.2\/","token":"38.2\/18\/1\/38.2-1812.2","metadata":false},{"id":55233,"structure_id":14103,"section_number":"38.2-1813","catch_line":"Reporting and accounting for premiums","url":"\/38.2-1813\/","token":"38.2\/18\/1\/38.2-1813","metadata":false}],"previous_section":{"id":60505,"structure_id":14103,"section_number":"38.2-1805","catch_line":"Acceptance by insurance agents of premiums in arrears; how advance premiums recorded","url":"\/38.2-1805\/","token":"38.2\/18\/1\/38.2-1805","metadata":false},"next_section":{"id":72532,"structure_id":14103,"section_number":"38.2-1807","catch_line":"Repealed","url":"\/38.2-1807\/","token":"38.2\/18\/1\/38.2-1807","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-1806\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1970, chapter 370; in 1979, chapter 513; in 1980, chapter 581; in 1985, chapter 33; in 1986, chapter 562; in 1987, chapter 521; in 2001, chapter 706<\/a>.<\/p>","references":[{"id":76029,"section_number":"38.2-1801","catch_line":"Person soliciting insurance deemed agent of insurer; prohibition against misrepresenting agency relationship","order_by":null,"url":"\/38.2-1801\/"},{"id":70545,"section_number":"38.2-4700","catch_line":"What persons deemed insurance premium finance companies","order_by":null,"url":"\/38.2-4700\/"},{"id":68759,"section_number":"38.2-513.1","catch_line":"Insurance sales by depository institutions and other lending institutions","order_by":null,"url":"\/38.2-513.1\/"},{"id":63345,"section_number":"6.2-303","catch_line":"Contracts for more than legal rate of interest","order_by":null,"url":"\/6.2-303\/"}],"refers_to":[{"id":83824,"section_number":"38.2-2114","catch_line":"Grounds and procedure for termination of policy; contents of notice; review by Commissioner; exceptions; immunity from liability","order_by":null,"url":"\/38.2-2114\/"},{"id":80817,"section_number":"38.2-2212","catch_line":"Grounds and procedure for cancellation of or refusal to renew motor vehicle insurance policies; review by Commissioner","order_by":null,"url":"\/38.2-2212\/"},{"id":70545,"section_number":"38.2-4700","catch_line":"What persons deemed insurance premium finance companies","order_by":null,"url":"\/38.2-4700\/"}],"permalink":{"id":212443,"object_type":"law","relational_id":83261,"identifier":"38.2-1806","token":"38.2\/18\/1\/38.2-1806","url":"\/38.2-1806\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-1806\/","token":"38.2\/18\/1\/38.2-1806","dublin_core":{"Title":"Interest with respect to credit extended or money lent for premiums on certain policies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-1806","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any agent licensed in this Commonwealth to sell<\/span>, solicit<\/span> or negotiate<\/span> property and casualty insurance<\/span>, mutual assessment property and casualty insurance<\/span>, or ocean marine insurance<\/span> may charge interest on credit extended by the agent to the holder of any fire, casualty, surety<\/span> or marine insurance<\/span> policy, written or being serviced by or through such agent, for the premium due on such policy. The rate<\/span> of interest shall not exceed one and one-half percent per month of the unpaid balance. However, the extension of credit or the making of the loan shall not be in conflict with the contract<\/span> between the agent and the insurer<\/span> that issues<\/span> the policy. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A licensed insurance<\/span> agent extending credit as authorized in this section shall not be required to comply with the provisions of Chapter 47 (§ 38.2-4700<\/a> et seq.) of this title with respect to the licensing of premium finance companies. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the provisions of §§ 38.2-2114<\/a> and 38.2-2212<\/a>, if any insured fails to discharge any of his obligations to a licensed insurance<\/span> agent when due in connection with the payment of any premium for a policy of insurance<\/span>, that agent may request in writing that the insurer<\/span> cancel such policy for nonpayment of premium. Within ten business days of the receipt of such written request, which shall also state<\/span> the amount owed the agent by the policyholder, the insurer<\/span> shall deliver or mail a written notice of cancellation to the named insured at the address shown in the policy and to any mortgagee or lienholder. This notice shall state<\/span> the date on which the cancellation shall become effective. That date shall be established by giving at least the number of days notice prior to cancellation that are required by statute<\/span> or the terms of the policy. Except for statutory requirements and contractual obligations, there shall be no liability on the part of the insurer<\/span> for improper cancellation under this section if the insurer<\/span> (i) in good faith relies upon the request of the agent and (ii) gives notice of cancellation in compliance with the provisions of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The insurance<\/span> agent shall have a lien<\/span> on any return premium for the policy to the extent of the amount owed by the policyholder. Within thirty calendar days of the mailing of the notice of cancellation, the insurer<\/span> shall forward that amount to the agent and shall forward the remainder, if any, of the return premium to the policyholder. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINTEREST WITH RESPECT TO CREDIT EXTENDED OR MONEY LENT FOR PREMIUMS ON CERTAIN\nPOLICIES (\u00a7 38.2-1806)\n\nA. Any agent licensed in this Commonwealth to sell, solicit or negotiate\nproperty and casualty insurance, mutual assessment property and casualty\ninsurance, or ocean marine insurance may charge interest on credit extended by\nthe agent to the holder of any fire, casualty, surety or marine insurance\npolicy, written or being serviced by or through such agent, for the premium due\non such policy. The rate of interest shall not exceed one and one-half percent\nper month of the unpaid balance. However, the extension of credit or the making\nof the loan shall not be in conflict with the contract between the agent and the\ninsurer that issues the policy.\n\nB. A licensed insurance agent extending credit as authorized in this section\nshall not be required to comply with the provisions of Chapter 47 (§\n38.2-4700 et seq.) of this title with respect to the licensing of premium\nfinance companies.\n\nC. Notwithstanding the provisions of §§ 38.2-2114 and 38.2-2212, if\nany insured fails to discharge any of his obligations to a licensed insurance\nagent when due in connection with the payment of any premium for a policy of\ninsurance, that agent may request in writing that the insurer cancel such policy\nfor nonpayment of premium. Within ten business days of the receipt of such\nwritten request, which shall also state the amount owed the agent by the\npolicyholder, the insurer shall deliver or mail a written notice of cancellation\nto the named insured at the address shown in the policy and to any mortgagee or\nlienholder. This notice shall state the date on which the cancellation shall\nbecome effective. That date shall be established by giving at least the number\nof days notice prior to cancellation that are required by statute or the terms\nof the policy. Except for statutory requirements and contractual obligations,\nthere shall be no liability on the part of the insurer for improper cancellation\nunder this section if the insurer (i) in good faith relies upon the request of\nthe agent and (ii) gives notice of cancellation in compliance with the\nprovisions of this section.\n\nD. The insurance agent shall have a lien on any return premium for the policy to\nthe extent of the amount owed by the policyholder. Within thirty calendar days\nof the mailing of the notice of cancellation, the insurer shall forward that\namount to the agent and shall forward the remainder, if any, of the return\npremium to the policyholder.\n\nHISTORY: Code 1950, \u00a7 38.1-293.1; 1970, c. 370; 1979, c. 513, \u00a7 38.1-327.7;\n1980, c. 581; 1985, c. 33; 1986, c. 562; 1987, c. 521; 2001, c. 706.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}