{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3113.3.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3113.3.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3113.3.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3113.3.html"}],"law_id":65667,"edition_id":1,"section_id":65667,"structure_id":13293,"section_number":"38.2-3113.3","catch_line":"Educational loan provisions in life insurance policies","history":"2000, c. 173.","full_text":"Educational loan provisions may be included as additional benefits, as part of the policy, or as a rider or as a separate agreement, subject to the following requirements:\n\n1\n\nAny and all necessary eligibility qualifications for an educational loan shall be specified in the life insurance policy, rider or separate agreement. The policy, rider or separate agreement shall also state clearly that the loan will be granted provided the covered individual applying for such loan has satisfied the stated qualifications. Loan eligibility qualifications shall not be more restrictive than the following:\n\t\t\ta. The loan applicant is a covered individual under the life insurance policy;\n\t\t\tb. The purpose of the loan is to provide funds for a covered individual under the policy, rider or separate agreement, or the dependent of a covered individual under the policy, rider or separate agreement to attend an institution of higher education, a trade school, or a technical school. As used in this section, an “institution of higher education” shall not be defined more restrictively than an accredited institution of higher education that is approved by the U.S. Department of Education. Age eligibility of the individual for whom the educational loan will be used may be limited to an age range no less restrictive than age 15 to age 25, subject to continued life insurance coverage of the covered individual during this duration; and\n\t\t\tc. The individual for whose education the loan will be used must attend a qualifying institution at least halftime, determined in a manner consistent with the institution’s standards for establishing full-time and half-time attendance, and must maintain an academic record sufficient to demonstrate reasonable progression or advancement.2\n\nThe amount of funds available for an educational loan shall be specified in the policy, rider or separate agreement, and shall be further limited to an amount not to exceed the actual cost of the school or institution during any given year of attendance less other aid received. If the amount available for the educational loan varies by the year of attendance in the school or institution, this shall be so stated and a schedule of annual loan availability by dollar amount shall be included in the policy, rider or separate agreement.3\n\nThe terms of the loan shall be clearly stated in the policy or rider, or the policy or rider shall refer to the availability of a separate document specifying all loan terms upon request of any insured individual. If the terms of the loan are included in a separate document, such document must be filed with the Commission for review. For purposes of this section, “terms of the loan” include, but are not limited to, (i) any and all fees, charges, and interest rates applied to borrowed funds, including a clear statement concerning possible fluctuation of such fees and charges depending upon the applicant’s credit worthiness and\/or depending upon any sources or indices used to determine such fees, charges or interest rates, (ii) minimum monthly payments, (iii) maximum amount of years for loan repayment, and (iv) policy assignment, if applicable.4\n\nAny life insurance policy, rider or separate agreement providing for educational loans shall include a prominent disclosure advising the reader of the prudence of obtaining information about educational loans from a variety of sources before making any decision about borrowing funds for financing higher education.5\n\nNo policy, rider or separate agreement providing for educational loans shall be delivered or issued for delivery in this Commonwealth unless a copy of the form has been filed with and approved by the Commission in accordance with § 38.2-316. No advertising material shall be used in the solicitation or promotion of the educational loan feature of a life insurance policy, rider or separate agreement until such material has been filed with and approved by the Commission in the same manner as is required for forms pursuant to § 38.2-316.","order_by":null,"text":{"0":{"id":238673,"text":"Educational loan provisions may be included as additional benefits, as part of the policy, or as a rider or as a separate agreement, subject to the following requirements:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":238674,"text":"Any and all necessary eligibility qualifications for an educational loan shall be specified in the life insurance policy, rider or separate agreement. The policy, rider or separate agreement shall also state clearly that the loan will be granted provided the covered individual applying for such loan has satisfied the stated qualifications. Loan eligibility qualifications shall not be more restrictive than the following:\n\t\t\ta. The loan applicant is a covered individual under the life insurance policy;\n\t\t\tb. The purpose of the loan is to provide funds for a covered individual under the policy, rider or separate agreement, or the dependent of a covered individual under the policy, rider or separate agreement to attend an institution of higher education, a trade school, or a technical school. As used in this section, an “institution of higher education” shall not be defined more restrictively than an accredited institution of higher education that is approved by the U.S. Department of Education. Age eligibility of the individual for whom the educational loan will be used may be limited to an age range no less restrictive than age 15 to age 25, subject to continued life insurance coverage of the covered individual during this duration; and\n\t\t\tc. The individual for whose education the loan will be used must attend a qualifying institution at least halftime, determined in a manner consistent with the institution’s standards for establishing full-time and half-time attendance, and must maintain an academic record sufficient to demonstrate reasonable progression or advancement.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":238675,"text":"The amount of funds available for an educational loan shall be specified in the policy, rider or separate agreement, and shall be further limited to an amount not to exceed the actual cost of the school or institution during any given year of attendance less other aid received. If the amount available for the educational loan varies by the year of attendance in the school or institution, this shall be so stated and a schedule of annual loan availability by dollar amount shall be included in the policy, rider or separate agreement.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":238676,"text":"The terms of the loan shall be clearly stated in the policy or rider, or the policy or rider shall refer to the availability of a separate document specifying all loan terms upon request of any insured individual. If the terms of the loan are included in a separate document, such document must be filed with the Commission for review. For purposes of this section, “terms of the loan” include, but are not limited to, (i) any and all fees, charges, and interest rates applied to borrowed funds, including a clear statement concerning possible fluctuation of such fees and charges depending upon the applicant’s credit worthiness and\/or depending upon any sources or indices used to determine such fees, charges or interest rates, (ii) minimum monthly payments, (iii) maximum amount of years for loan repayment, and (iv) policy assignment, if applicable.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":238677,"text":"Any life insurance policy, rider or separate agreement providing for educational loans shall include a prominent disclosure advising the reader of the prudence of obtaining information about educational loans from a variety of sources before making any decision about borrowing funds for financing higher education.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":238678,"text":"No policy, rider or separate agreement providing for educational loans shall be delivered or issued for delivery in this Commonwealth unless a copy of the form has been filed with and approved by the Commission in accordance with § 38.2-316. No advertising material shall be used in the solicitation or promotion of the educational loan feature of a life insurance policy, rider or separate agreement until such material has been filed with and approved by the Commission in the same manner as is required for forms pursuant to § 38.2-316.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":13293,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13292,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":214333,"object_type":"structure","relational_id":13293,"identifier":"1","token":"38.2\/31\/1","url":"\/38.2\/31\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13292,"edition_id":1,"name":"Life Insurance","identifier":"31","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:35","date_modified":"2026-06-26 03:44:35","permalink":{"id":214331,"object_type":"structure","relational_id":13292,"identifier":"31","token":"38.2\/31","url":"\/38.2\/31\/","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":79264,"structure_id":13293,"section_number":"38.2-3100","catch_line":"Scope of chapter","url":"\/38.2-3100\/","token":"38.2\/31\/1\/38.2-3100","metadata":false},{"id":59125,"structure_id":13293,"section_number":"38.2-3100.1","catch_line":"Forms of insurance authorized","url":"\/38.2-3100.1\/","token":"38.2\/31\/1\/38.2-3100.1","metadata":false},{"id":62806,"structure_id":13293,"section_number":"38.2-3100.2","catch_line":"Funding agreements","url":"\/38.2-3100.2\/","token":"38.2\/31\/1\/38.2-3100.2","metadata":false},{"id":73524,"structure_id":13293,"section_number":"38.2-3100.3","catch_line":"Requirements of life insurance or annuity contracts used to fund preneed funeral contracts","url":"\/38.2-3100.3\/","token":"38.2\/31\/1\/38.2-3100.3","metadata":false},{"id":81650,"structure_id":13293,"section_number":"38.2-3101","catch_line":"Legal reserve insurers","url":"\/38.2-3101\/","token":"38.2\/31\/1\/38.2-3101","metadata":false},{"id":86718,"structure_id":13293,"section_number":"38.2-3102","catch_line":"Domestic insurers prohibited from insuring lives and persons of residents of \"reciprocal states.\"","url":"\/38.2-3102\/","token":"38.2\/31\/1\/38.2-3102","metadata":false},{"id":79156,"structure_id":13293,"section_number":"38.2-3103","catch_line":"Fraudulent procurement of policy; 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transfer subject to Commission approval","url":"\/38.2-3111.1\/","token":"38.2\/31\/1\/38.2-3111.1","metadata":false},{"id":70263,"structure_id":13293,"section_number":"38.2-3112","catch_line":"Designation of testamentary trustee as beneficiary","url":"\/38.2-3112\/","token":"38.2\/31\/1\/38.2-3112","metadata":false},{"id":57329,"structure_id":13293,"section_number":"38.2-3113","catch_line":"Variable life insurance and variable annuities; separate accounts to be established; authority to issue; reports; special voting rights and procedures for owners","url":"\/38.2-3113\/","token":"38.2\/31\/1\/38.2-3113","metadata":false},{"id":72467,"structure_id":13293,"section_number":"38.2-3113.1","catch_line":"Modified guaranteed life insurance and modified guaranteed annuities; separate accounts; authority to issue; statements required; regulations to be issued; approval expenses","url":"\/38.2-3113.1\/","token":"38.2\/31\/1\/38.2-3113.1","metadata":false},{"id":69792,"structure_id":13293,"section_number":"38.2-3113.2","catch_line":"Qualified charitable gift annuities; issuance not business of insurance; disclosures to donors; unfair trade practices provisions not applicable","url":"\/38.2-3113.2\/","token":"38.2\/31\/1\/38.2-3113.2","metadata":false},{"id":65667,"structure_id":13293,"section_number":"38.2-3113.3","catch_line":"Educational loan provisions in life insurance policies","url":"\/38.2-3113.3\/","token":"38.2\/31\/1\/38.2-3113.3","metadata":false},{"id":85330,"structure_id":13293,"section_number":"38.2-3114","catch_line":"Statements required in variable life insurance and variable annuity contracts and certificates issued pursuant to group variable life insurance and group variable annuity contracts","url":"\/38.2-3114\/","token":"38.2\/31\/1\/38.2-3114","metadata":false},{"id":77467,"structure_id":13293,"section_number":"38.2-3115","catch_line":"Interest on life insurance and annuity contract proceeds","url":"\/38.2-3115\/","token":"38.2\/31\/1\/38.2-3115","metadata":false},{"id":72867,"structure_id":13293,"section_number":"38.2-3115.1","catch_line":"Accelerated payment of benefits","url":"\/38.2-3115.1\/","token":"38.2\/31\/1\/38.2-3115.1","metadata":false},{"id":86306,"structure_id":13293,"section_number":"38.2-3116","catch_line":"Commission to establish standards for simplified and readable life insurance and annuity policies","url":"\/38.2-3116\/","token":"38.2\/31\/1\/38.2-3116","metadata":false},{"id":54283,"structure_id":13293,"section_number":"38.2-3117","catch_line":"Standards for certain policies; prohibited policies","url":"\/38.2-3117\/","token":"38.2\/31\/1\/38.2-3117","metadata":false},{"id":83030,"structure_id":13293,"section_number":"38.2-3117.01","catch_line":"Provision of life insurance information upon notification of insured's death","url":"\/38.2-3117.01\/","token":"38.2\/31\/1\/38.2-3117.01","metadata":false}],"previous_section":{"id":69792,"structure_id":13293,"section_number":"38.2-3113.2","catch_line":"Qualified charitable gift annuities; issuance not business of insurance; disclosures to donors; unfair trade practices provisions not applicable","url":"\/38.2-3113.2\/","token":"38.2\/31\/1\/38.2-3113.2","metadata":false},"next_section":{"id":85330,"structure_id":13293,"section_number":"38.2-3114","catch_line":"Statements required in variable life insurance and variable annuity contracts and certificates issued pursuant to group variable life insurance and group variable annuity contracts","url":"\/38.2-3114\/","token":"38.2\/31\/1\/38.2-3114","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3113.3\/","history_text":"

This law was first created in 2000. The record of its establishment is cataloged in chapter 173<\/a> 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.<\/p>","references":false,"refers_to":[{"id":60466,"section_number":"38.2-316","catch_line":"Policy forms to be filed with Commission; notice of approval or disapproval; exceptions","order_by":null,"url":"\/38.2-316\/"}],"permalink":{"id":214415,"object_type":"law","relational_id":65667,"identifier":"38.2-3113.3","token":"38.2\/31\/1\/38.2-3113.3","url":"\/38.2-3113.3\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3113.3\/","token":"38.2\/31\/1\/38.2-3113.3","dublin_core":{"Title":"Educational loan provisions in life insurance policies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3113.3","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Educational loan provisions may be included as additional benefits, as part of the policy, or as a rider or as a separate agreement, subject to the following requirements:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any and all necessary eligibility qualifications for an educational loan shall be specified in the life insurance<\/span> policy, rider or separate agreement. The policy, rider or separate agreement shall also state<\/span> clearly that the loan will be granted provided the covered individual applying for such loan has satisfied the stated qualifications. Loan eligibility qualifications shall not be more restrictive than the following:\n\t\t\ta. The loan applicant is a covered individual under the life insurance<\/span> policy;\n\t\t\tb. The purpose of the loan is to provide funds for a covered individual under the policy, rider or separate agreement, or the dependent of a covered individual under the policy, rider or separate agreement to attend an institution of higher education, a trade school, or a technical school. As used in this section, an “institution of higher education” shall not be defined more restrictively than an accredited institution of higher education that is approved by the U.S. Department of Education. Age eligibility of the individual for whom the educational loan will be used may be limited to an age range no less restrictive than age 15 to age 25, subject to continued life insurance<\/span> coverage of the covered individual during this duration; and\n\t\t\tc. The individual for whose education the loan will be used must attend a qualifying institution at least halftime, determined in a manner consistent with the institution’s standards for establishing full-time and half-time attendance, and must maintain an academic record sufficient to demonstrate reasonable progression or advancement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The amount of funds available for an educational loan shall be specified in the policy, rider or separate agreement, and shall be further limited to an amount not to exceed the actual cost of the school or institution during any given year of attendance less other aid received. If the amount available for the educational loan varies by the year of attendance in the school or institution, this shall be so stated and a schedule of annual loan availability by dollar amount shall be included in the policy, rider or separate agreement. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The terms of the loan shall be clearly stated in the policy or rider, or the policy or rider shall refer to the availability of a separate document specifying all loan terms upon request of any insured individual. If the terms of the loan are included in a separate document, such document must be filed with the Commission<\/span> for review. For purposes of this section, “terms of the loan” include, but are not limited to, (i) any and all fees, charges, and interest rates<\/span><\/span> applied to borrowed funds, including a clear statement concerning possible fluctuation of such fees and charges depending upon the applicant’s credit worthiness and\/or depending upon any sources or indices used to determine such fees, charges or interest rates<\/span><\/span>, (ii) minimum monthly payments, (iii) maximum amount of years for loan repayment, and (iv) policy assignment, if applicable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any life insurance<\/span> policy, rider or separate agreement providing for educational loans shall include a prominent disclosure advising the reader of the prudence of obtaining information about educational loans from a variety of sources before making any decision about borrowing funds for financing higher education. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> No policy, rider or separate agreement providing for educational loans shall be delivered or issued for delivery in this Commonwealth unless a copy of the form has been filed with and approved by the Commission<\/span> in accordance with § 38.2-316<\/a>. No advertising material<\/span> shall be used in the solicitation or promotion of the educational loan feature of a life insurance<\/span> policy, rider or separate agreement until such material<\/span> has been filed with and approved by the Commission<\/span> in the same manner as is required for forms pursuant to § 38.2-316<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEDUCATIONAL LOAN PROVISIONS IN LIFE INSURANCE POLICIES (\u00a7 38.2-3113.3)\n\nEducational loan provisions may be included as additional benefits, as part of\nthe policy, or as a rider or as a separate agreement, subject to the following\nrequirements:\n\n1. Any and all necessary eligibility qualifications for an educational loan\nshall be specified in the life insurance policy, rider or separate agreement.\nThe policy, rider or separate agreement shall also state clearly that the loan\nwill be granted provided the covered individual applying for such loan has\nsatisfied the stated qualifications. Loan eligibility qualifications shall not\nbe more restrictive than the following:\n\t\t\ta. The loan applicant is a covered individual under the life insurance\npolicy;\n\t\t\tb. The purpose of the loan is to provide funds for a covered individual under\nthe policy, rider or separate agreement, or the dependent of a covered\nindividual under the policy, rider or separate agreement to attend an\ninstitution of higher education, a trade school, or a technical school. As used\nin this section, an “institution of higher education” shall not be\ndefined more restrictively than an accredited institution of higher education\nthat is approved by the U.S. Department of Education. Age eligibility of the\nindividual for whom the educational loan will be used may be limited to an age\nrange no less restrictive than age 15 to age 25, subject to continued life\ninsurance coverage of the covered individual during this duration; and\n\t\t\tc. The individual for whose education the loan will be used must attend a\nqualifying institution at least halftime, determined in a manner consistent with\nthe institution’s standards for establishing full-time and half-time\nattendance, and must maintain an academic record sufficient to demonstrate\nreasonable progression or advancement.\n\n2. The amount of funds available for an educational loan shall be specified in\nthe policy, rider or separate agreement, and shall be further limited to an\namount not to exceed the actual cost of the school or institution during any\ngiven year of attendance less other aid received. If the amount available for\nthe educational loan varies by the year of attendance in the school or\ninstitution, this shall be so stated and a schedule of annual loan availability\nby dollar amount shall be included in the policy, rider or separate agreement.\n\n3. The terms of the loan shall be clearly stated in the policy or rider, or the\npolicy or rider shall refer to the availability of a separate document\nspecifying all loan terms upon request of any insured individual. If the terms\nof the loan are included in a separate document, such document must be filed\nwith the Commission for review. For purposes of this section, “terms of\nthe loan” include, but are not limited to, (i) any and all fees, charges,\nand interest rates applied to borrowed funds, including a clear statement\nconcerning possible fluctuation of such fees and charges depending upon the\napplicant’s credit worthiness and\/or depending upon any sources or indices\nused to determine such fees, charges or interest rates, (ii) minimum monthly\npayments, (iii) maximum amount of years for loan repayment, and (iv) policy\nassignment, if applicable.\n\n4. Any life insurance policy, rider or separate agreement providing for\neducational loans shall include a prominent disclosure advising the reader of\nthe prudence of obtaining information about educational loans from a variety of\nsources before making any decision about borrowing funds for financing higher\neducation.\n\n5. No policy, rider or separate agreement providing for educational loans shall\nbe delivered or issued for delivery in this Commonwealth unless a copy of the\nform has been filed with and approved by the Commission in accordance with\n§ 38.2-316. No advertising material shall be used in the solicitation or\npromotion of the educational loan feature of a life insurance policy, rider or\nseparate agreement until such material has been filed with and approved by the\nCommission in the same manner as is required for forms pursuant to §\n38.2-316.\n\nHISTORY: 2000, c. 173.","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}}