{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-301.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-301.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-301.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-301.html"}],"law_id":66037,"edition_id":1,"section_id":66037,"structure_id":13680,"section_number":"38.2-301","catch_line":"Insurable interest required; life, accident and sickness insurance","history":"1952, c. 317, \u00a7 38.1-329; 1986, c. 562; 1988, c. 831; 1992, cc. 8, 50; 1993, c. 105; 2005, cc. 656, 698; 2007, c. 186.","full_text":"A\n\nAny individual of lawful age may take out an insurance contract upon himself for the benefit of any person. No person shall knowingly procure or cause to be procured any insurance contract upon another individual unless the benefits under the contract are payable to (i) the insured or his personal representative or (ii) a person having an insurable interest in the insured at the time when the contract was made.B\n\nAs used in this section and \u00a7 38.2-302, “insurable interest” means:1\n\nIn the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection;2\n\nIn the case of other persons, a lawful and substantial economic interest in the life, health, and bodily safety of the insured. “Insurable interest” shall not include an interest which arises only or is enhanced by the death, disability or injury of the insured;3\n\nIn the case of employees of corporations, with respect to whom the corporate employer, a trust established by the corporate employer, or an employee benefit trust is the beneficiary under an insurance contract, the lawful and substantial economic interest required in subdivision 2 of this subsection shall be deemed to exist in (i) key employees and (ii) other employees who have been employed by the corporation for 12 consecutive months, provided that the amount of insurance coverage on such other employees shall be limited to an amount which is commensurate with employer-provided benefits to non-key employees as a group;4\n\nIn the case of a party to a contract or option for the purchase or sale, including a redemption, of an interest in a business proprietorship, partnership or firm or of shares of stock of a corporation or of an interest in such shares, the lawful and substantial economic interest required in subdivision 2 shall be deemed to exist in each individual party to such contract or option and for the purpose of such contract or option only, in addition to any insurable interest that may otherwise exist as to the life of such individual;5\n\nIn the case of a trustee, other than the trustee of a domestic business trust or foreign business trust, as defined in § 13.1-1201, the lawful and substantial economic interest required in subdivision 2 shall be deemed to exist, whether the life insurance policy is owned by a trustee before, on or after July 1, 2005, in (i) the individual insured who established the trust, (ii) each individual in whose life the owner of the trust for federal income tax purposes has an insurable interest, and (iii) each individual in whose life a beneficiary of the trust has an insurable interest; and6\n\nIn the case of an organization described in § 501(c) of the Internal Revenue Code, the lawful and substantial economic interest required in subdivision 2 of this subsection shall be deemed to exist where (i) the insured or proposed insured has either assigned all or part of his ownership rights in a policy or contract to such an organization or has executed a written consent to the issuance of a policy or contract to such organization and (ii) such organization is named in the policy or contract as owner or as beneficiary.","order_by":null,"text":{"0":{"id":239956,"text":"Any individual of lawful age may take out an insurance contract upon himself for the benefit of any person. No person shall knowingly procure or cause to be procured any insurance contract upon another individual unless the benefits under the contract are payable to (i) the insured or his personal representative or (ii) a person having an insurable interest in the insured at the time when the contract was made.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":239957,"text":"As used in this section and \u00a7 38.2-302, “insurable interest” means:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":239958,"text":"In the case of individuals related closely by blood or by law, a substantial interest engendered by love and affection;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":239959,"text":"In the case of other persons, a lawful and substantial economic interest in the life, health, and bodily safety of the insured. “Insurable interest” shall not include an interest which arises only or is enhanced by the death, disability or injury of the insured;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":239960,"text":"In the case of employees of corporations, with respect to whom the corporate employer, a trust established by the corporate employer, or an employee benefit trust is the beneficiary under an insurance contract, the lawful and substantial economic interest required in subdivision 2 of this subsection shall be deemed to exist in (i) key employees and (ii) other employees who have been employed by the corporation for 12 consecutive months, provided that the amount of insurance coverage on such other employees shall be limited to an amount which is commensurate with employer-provided benefits to non-key employees as a group;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":239961,"text":"In the case of a party to a contract or option for the purchase or sale, including a redemption, of an interest in a business proprietorship, partnership or firm or of shares of stock of a corporation or of an interest in such shares, the lawful and substantial economic interest required in subdivision 2 shall be deemed to exist in each individual party to such contract or option and for the purpose of such contract or option only, in addition to any insurable interest that may otherwise exist as to the life of such individual;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":239962,"text":"In the case of a trustee, other than the trustee of a domestic business trust or foreign business trust, as defined in § 13.1-1201, the lawful and substantial economic interest required in subdivision 2 shall be deemed to exist, whether the life insurance policy is owned by a trustee before, on or after July 1, 2005, in (i) the individual insured who established the trust, (ii) each individual in whose life the owner of the trust for federal income tax purposes has an insurable interest, and (iii) each individual in whose life a beneficiary of the trust has an insurable interest; and","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":239963,"text":"In the case of an organization described in § 501(c) of the Internal Revenue Code, the lawful and substantial economic interest required in subdivision 2 of this subsection shall be deemed to exist where (i) the insured or proposed insured has either assigned all or part of his ownership rights in a policy or contract to such an organization or has executed a written consent to the issuance of a policy or contract to such organization and (ii) such organization is named in the policy or contract as owner or as beneficiary.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5"}},"ancestry":[{"id":13680,"edition_id":1,"name":"Provisions Relating to Insurance Policies and Contracts","identifier":"3","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:32","date_modified":"2026-06-26 03:45:32","permalink":{"id":214203,"object_type":"structure","relational_id":13680,"identifier":"3","token":"38.2\/3","url":"\/38.2\/3\/","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":67920,"structure_id":13680,"section_number":"38.2-300","catch_line":"Scope of chapter","url":"\/38.2-300\/","token":"38.2\/3\/38.2-300","metadata":false},{"id":66037,"structure_id":13680,"section_number":"38.2-301","catch_line":"Insurable interest required; life, accident and sickness insurance","url":"\/38.2-301\/","token":"38.2\/3\/38.2-301","metadata":false},{"id":76812,"structure_id":13680,"section_number":"38.2-302","catch_line":"Life, accident, and sickness insurance; application required","url":"\/38.2-302\/","token":"38.2\/3\/38.2-302","metadata":false},{"id":58792,"structure_id":13680,"section_number":"38.2-303","catch_line":"Insurable interest required; property insurance","url":"\/38.2-303\/","token":"38.2\/3\/38.2-303","metadata":false},{"id":79372,"structure_id":13680,"section_number":"38.2-304","catch_line":"Contracts of temporary insurance; duration; what deemed to include","url":"\/38.2-304\/","token":"38.2\/3\/38.2-304","metadata":false},{"id":68773,"structure_id":13680,"section_number":"38.2-305","catch_line":"Contents of policies","url":"\/38.2-305\/","token":"38.2\/3\/38.2-305","metadata":false},{"id":76860,"structure_id":13680,"section_number":"38.2-306","catch_line":"Additional contents","url":"\/38.2-306\/","token":"38.2\/3\/38.2-306","metadata":false},{"id":84098,"structure_id":13680,"section_number":"38.2-307","catch_line":"Charter and bylaw provisions in policies","url":"\/38.2-307\/","token":"38.2\/3\/38.2-307","metadata":false},{"id":69279,"structure_id":13680,"section_number":"38.2-308","catch_line":"Contingent liability provisions in policies issued by certain mutual insurers","url":"\/38.2-308\/","token":"38.2\/3\/38.2-308","metadata":false},{"id":65281,"structure_id":13680,"section_number":"38.2-309","catch_line":"When answers or statements of applicant do not bar recovery on policy","url":"\/38.2-309\/","token":"38.2\/3\/38.2-309","metadata":false},{"id":67536,"structure_id":13680,"section_number":"38.2-310","catch_line":"All fees, charges, etc., to be stated in policy","url":"\/38.2-310\/","token":"38.2\/3\/38.2-310","metadata":false},{"id":72176,"structure_id":13680,"section_number":"38.2-311","catch_line":"Type size in which conditions and restrictions to be printed","url":"\/38.2-311\/","token":"38.2\/3\/38.2-311","metadata":false},{"id":75172,"structure_id":13680,"section_number":"38.2-312","catch_line":"Provisions limiting jurisdiction, or requiring construction of contracts by law of other states, prohibited","url":"\/38.2-312\/","token":"38.2\/3\/38.2-312","metadata":false},{"id":74805,"structure_id":13680,"section_number":"38.2-313","catch_line":"Where certain contracts deemed made","url":"\/38.2-313\/","token":"38.2\/3\/38.2-313","metadata":false},{"id":56872,"structure_id":13680,"section_number":"38.2-314","catch_line":"Limitation of action and proof of loss","url":"\/38.2-314\/","token":"38.2\/3\/38.2-314","metadata":false},{"id":69924,"structure_id":13680,"section_number":"38.2-315","catch_line":"Intervening breach","url":"\/38.2-315\/","token":"38.2\/3\/38.2-315","metadata":false},{"id":60466,"structure_id":13680,"section_number":"38.2-316","catch_line":"Policy forms to be filed with Commission; notice of approval or disapproval; exceptions","url":"\/38.2-316\/","token":"38.2\/3\/38.2-316","metadata":false},{"id":85582,"structure_id":13680,"section_number":"38.2-316.1","catch_line":"Premium rates","url":"\/38.2-316.1\/","token":"38.2\/3\/38.2-316.1","metadata":false},{"id":71148,"structure_id":13680,"section_number":"38.2-316.2","catch_line":"Dental carriers; annual actual loss ratio report","url":"\/38.2-316.2\/","token":"38.2\/3\/38.2-316.2","metadata":false},{"id":77188,"structure_id":13680,"section_number":"38.2-317","catch_line":"Delivery and use of certain policies and endorsements","url":"\/38.2-317\/","token":"38.2\/3\/38.2-317","metadata":false},{"id":64949,"structure_id":13680,"section_number":"38.2-318","catch_line":"Validity of noncomplying forms","url":"\/38.2-318\/","token":"38.2\/3\/38.2-318","metadata":false},{"id":67693,"structure_id":13680,"section_number":"38.2-319","catch_line":"Validity of contracts in violation of law","url":"\/38.2-319\/","token":"38.2\/3\/38.2-319","metadata":false},{"id":71052,"structure_id":13680,"section_number":"38.2-320","catch_line":"Insurer to furnish forms for proof of loss","url":"\/38.2-320\/","token":"38.2\/3\/38.2-320","metadata":false},{"id":60210,"structure_id":13680,"section_number":"38.2-321","catch_line":"Payment discharges insurer","url":"\/38.2-321\/","token":"38.2\/3\/38.2-321","metadata":false},{"id":65634,"structure_id":13680,"section_number":"38.2-322","catch_line":"Standardized claims forms","url":"\/38.2-322\/","token":"38.2\/3\/38.2-322","metadata":false},{"id":54659,"structure_id":13680,"section_number":"38.2-323","catch_line":"Repealed","url":"\/38.2-323\/","token":"38.2\/3\/38.2-323","metadata":false},{"id":87300,"structure_id":13680,"section_number":"38.2-324","catch_line":"Disclosure of property damage information","url":"\/38.2-324\/","token":"38.2\/3\/38.2-324","metadata":false},{"id":72048,"structure_id":13680,"section_number":"38.2-325","catch_line":"Electronic delivery","url":"\/38.2-325\/","token":"38.2\/3\/38.2-325","metadata":false},{"id":55944,"structure_id":13680,"section_number":"38.2-326","catch_line":"Plan management functions","url":"\/38.2-326\/","token":"38.2\/3\/38.2-326","metadata":false}],"previous_section":{"id":67920,"structure_id":13680,"section_number":"38.2-300","catch_line":"Scope of chapter","url":"\/38.2-300\/","token":"38.2\/3\/38.2-300","metadata":false},"next_section":{"id":76812,"structure_id":13680,"section_number":"38.2-302","catch_line":"Life, accident, and sickness insurance; application required","url":"\/38.2-302\/","token":"38.2\/3\/38.2-302","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-301\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 317 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1952 \u201cActs\u201d aren\u2019t available online. It has been modified 6 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 1986, chapter 562; in 1988, chapter 831; in 1992, chapters 8 and 50; in 1993, chapter 105; in 2005, chapters 656<\/a> and 698<\/a>; in 2007, chapter 186<\/a>.<\/p>","references":[{"id":60714,"section_number":"20-107.1:1","catch_line":"Court may decree as to maintenance of life insurance policy","order_by":null,"url":"\/20-107.1_1\/"},{"id":76812,"section_number":"38.2-302","catch_line":"Life, accident, and sickness insurance; application required","order_by":null,"url":"\/38.2-302\/"},{"id":79808,"section_number":"38.2-3323","catch_line":"Group life insurance coverages of spouses, dependent children, and other persons","order_by":null,"url":"\/38.2-3323\/"},{"id":77746,"section_number":"38.2-3324","catch_line":"Standard provisions required; exceptions","order_by":null,"url":"\/38.2-3324\/"},{"id":70270,"section_number":"38.2-4019","catch_line":"Beneficiaries","order_by":null,"url":"\/38.2-4019\/"}],"refers_to":[{"id":68199,"section_number":"13.1-1201","catch_line":"Definitions","order_by":null,"url":"\/13.1-1201\/"},{"id":76812,"section_number":"38.2-302","catch_line":"Life, accident, and sickness insurance; application required","order_by":null,"url":"\/38.2-302\/"}],"permalink":{"id":214209,"object_type":"law","relational_id":66037,"identifier":"38.2-301","token":"38.2\/3\/38.2-301","url":"\/38.2-301\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-301\/","token":"38.2\/3\/38.2-301","dublin_core":{"Title":"Insurable interest required; life, accident and sickness insurance","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-301","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Any individual of lawful age may take out an insurance<\/span> contract<\/span> upon himself for the benefit of any person<\/span>. No person<\/span> shall knowingly procure or cause to be procured any insurance<\/span> contract<\/span> upon another individual unless the benefits under the contract<\/span> are payable to (i) the insured or his personal representative or (ii) a person<\/span> having an insurable interest in the insured at the time when the contract<\/span> was made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> As used in this section and \u00a7 38.2-302<\/a>, “insurable interest” means: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> In the case of individuals related closely by blood or by law<\/span>, a substantial interest engendered by love and affection; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> In the case of other persons<\/span>, a lawful and substantial economic interest in the life, health, and bodily safety of the insured. “Insurable interest” shall not include an interest which arises only or is enhanced by the death, disability or injury of the insured; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> In the case of employees of corporations, with respect to whom the corporate employer, a trust established by the corporate employer, or an employee benefit trust is the beneficiary under an insurance<\/span> contract<\/span>, the lawful and substantial economic interest required in subdivision 2 of this subsection shall be deemed to exist in (i) key employees and (ii) other employees who have been employed by the corporation for 12 consecutive months, provided that the amount of insurance<\/span> coverage on such other employees shall be limited to an amount which is commensurate with employer-provided benefits to non-key employees as a group; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In the case of a party<\/span> to a contract<\/span> or option for the purchase or sale, including a redemption<\/span>, of an interest in a business proprietorship, partnership or firm or of shares of stock of a corporation or of an interest in such shares, the lawful and substantial economic interest required in subdivision 2 shall be deemed to exist in each individual party<\/span> to such contract<\/span> or option and for the purpose of such contract<\/span> or option only, in addition to any insurable interest that may otherwise exist as to the life of such individual; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> In the case of a trustee, other than the trustee of a domestic business trust or foreign business trust, as defined in § 13.1-1201<\/a>, the lawful and substantial economic interest required in subdivision 2 shall be deemed to exist, whether the life insurance<\/span> policy is owned by a trustee before, on or after July 1, 2005, in (i) the individual insured who established the trust, (ii) each individual in whose life the owner of the trust for federal income tax purposes has an insurable interest, and (iii) each individual in whose life a beneficiary of the trust has an insurable interest; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> In the case of an organization described in § 501(c) of the Internal Revenue Code, the lawful and substantial economic interest required in subdivision 2 of this subsection shall be deemed to exist where (i) the insured or proposed insured has either assigned all or part of his ownership rights in a policy or contract<\/span> to such an organization or has executed a written consent to the issuance of a policy or contract<\/span> to such organization and (ii) such organization is named in the policy or contract<\/span> as owner or as beneficiary. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSURABLE INTEREST REQUIRED; LIFE, ACCIDENT AND SICKNESS INSURANCE (\u00a7 38.2-301)\n\nA. Any individual of lawful age may take out an insurance contract upon himself\nfor the benefit of any person. No person shall knowingly procure or cause to be\nprocured any insurance contract upon another individual unless the benefits\nunder the contract are payable to (i) the insured or his personal representative\nor (ii) a person having an insurable interest in the insured at the time when\nthe contract was made.\n\nB. As used in this section and \u00a7 38.2-302, “insurable interest”\nmeans:\n\n 1. In the case of individuals related closely by blood or by law, a\n substantial interest engendered by love and affection;\n\n 2. In the case of other persons, a lawful and substantial economic interest in\n the life, health, and bodily safety of the insured. “Insurable\n interest” shall not include an interest which arises only or is enhanced\n by the death, disability or injury of the insured;\n\n 3. In the case of employees of corporations, with respect to whom the\n corporate employer, a trust established by the corporate employer, or an\n employee benefit trust is the beneficiary under an insurance contract, the\n lawful and substantial economic interest required in subdivision 2 of this\n subsection shall be deemed to exist in (i) key employees and (ii) other\n employees who have been employed by the corporation for 12 consecutive months,\n provided that the amount of insurance coverage on such other employees shall\n be limited to an amount which is commensurate with employer-provided benefits\n to non-key employees as a group;\n\n 4. In the case of a party to a contract or option for the purchase or sale,\n including a redemption, of an interest in a business proprietorship,\n partnership or firm or of shares of stock of a corporation or of an interest\n in such shares, the lawful and substantial economic interest required in\n subdivision 2 shall be deemed to exist in each individual party to such\n contract or option and for the purpose of such contract or option only, in\n addition to any insurable interest that may otherwise exist as to the life of\n such individual;\n\n 5. In the case of a trustee, other than the trustee of a domestic business\n trust or foreign business trust, as defined in § 13.1-1201, the lawful\n and substantial economic interest required in subdivision 2 shall be deemed to\n exist, whether the life insurance policy is owned by a trustee before, on or\n after July 1, 2005, in (i) the individual insured who established the trust,\n (ii) each individual in whose life the owner of the trust for federal income\n tax purposes has an insurable interest, and (iii) each individual in whose\n life a beneficiary of the trust has an insurable interest; and\n\n 6. In the case of an organization described in § 501(c) of the Internal\n Revenue Code, the lawful and substantial economic interest required in\n subdivision 2 of this subsection shall be deemed to exist where (i) the\n insured or proposed insured has either assigned all or part of his ownership\n rights in a policy or contract to such an organization or has executed a\n written consent to the issuance of a policy or contract to such organization\n and (ii) such organization is named in the policy or contract as owner or as\n beneficiary.\n\nHISTORY: 1952, c. 317, \u00a7 38.1-329; 1986, c. 562; 1988, c. 831; 1992, cc. 8, 50;\n1993, c. 105; 2005, cc. 656, 698; 2007, c. 186.","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}}