{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3318.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3318.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3318.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3318.1.html"}],"law_id":72251,"edition_id":1,"section_id":72251,"structure_id":14882,"section_number":"38.2-3318.1","catch_line":"Group life insurance requirements","history":"1998, c. 154.","full_text":"Except as provided in \u00a7 38.2-3319.1, no policy of group life insurance shall be delivered in this Commonwealth unless it conforms to one of the following descriptions:\n\nA\n\nA policy issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer, subject to the following requirements:1\n\nThe employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any class or classes thereof. The policy may provide that the term “employees” include:\n\t\t\t\ta. The employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships, or partnerships is under common control;\n\t\t\t\tb. The individual proprietor or partners if the employer is an individual proprietorship or partnership;\n\t\t\t\tc. Retired employees, former employees and directors of a corporate employer; or\n\t\t\t\td. If the policy is issued to insure the employees of a public body, elected or appointed officials.2\n\nThe premium for the policy shall be paid either from the employer’s funds or from funds contributed by the insured employees, 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 funds contributed by the insured employees must insure all eligible employees, except those who reject such coverage in writing.3\n\nAn insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.B\n\nA policy which is:1\n\nNot subject to Chapter 37.1 (§ 38.2-3727 et seq.) of this title, and2\n\nIssued to a creditor or its parent holding company or to a trustee or 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:\n\t\t\t\ta. 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 thereof. The policy may provide that the term “debtors” includes:1\n\nBorrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction;2\n\nThe debtors of one or more subsidiary corporations; and3\n\nThe debtors of one or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of such affiliated corporations, proprietorships, or partnerships is under common control.\n\t\t\t\t\tb. The premium for the policy shall be paid 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 funds contributed by insured debtors specifically for their insurance must insure all eligible debtors.3\n\nAn insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer.4\n\nThe amount of the insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor.5\n\nThe insurance may be payable to the creditor or any successor to the right, title, and interest of the creditor. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment and any excess of the insurance shall be payable to the estate of the insured.6\n\nNotwithstanding the provisions of the above subsections, insurance on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a nondecreasing or level term plan. Insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan.C\n\nA policy issued to a labor union, or similar employee organization, which shall be deemed to be the policyholder, to insure members of such union or organization for the benefit of persons other than the union or organization or any of its officials, representatives, or agents, subject to the following requirements:1\n\nThe members eligible for insurance under the policy shall be all of the members of the union or organization, or all of any class or classes thereof.2\n\nThe premium for the policy shall be paid either from funds of the union or organization, or from funds contributed by the insured members specifically for their insurance, 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 funds contributed by the insured members specifically for their insurance must insure all eligible members, except those who reject such coverage in writing.3\n\nAn insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.D\n\nA policy issued to or for (i) a multiple employer welfare arrangement, a rural electric cooperative, or a rural electric telephone cooperative as these terms are defined in 29 U.S.C. \u00a7 1002, or (ii) a trust or to the trustees of a fund established or adopted by two or more employers, or by one or more labor unions or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, which trust or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or organizations for the benefit of persons other than the employees or the unions or organizations, subject to the following requirements:1\n\nThe persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions or organizations, or all of any class or classes thereof. The policy may provide that the term employees includes:\n\t\t\t\ta. The employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships or partnerships is under common control;\n\t\t\t\tb. The individual proprietor or partners if the employer is an individual proprietorship or partnership;\n\t\t\t\tc. Retired employees, former employees and directors of a corporate employer; or\n\t\t\t\td. The trustees or their employees, or both, if their duties are principally connected with such trusteeship.2\n\nThe premium for the policy shall be paid from funds contributed by the employer or employers of the insured persons, or by the union or unions or similar employee organizations, or by both, or from funds contributed by the insured persons or from both the insured persons and the employers or unions or similar employee organizations. Except as provided in subdivision 3 of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured persons specifically for their insurance must insure all eligible persons, except those who reject such coverage in writing.3\n\nAn insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.E\n\n1. A policy issued to an association or to a trust or to the trustees of a fund established, created, or maintained for the benefit of members of one or more associations. The association or associations shall:\n\t\t\ta. Have at the outset a minimum of 100 persons;\n\t\t\tb. Have been organized and maintained in good faith for purposes other than that of obtaining insurance;\n\t\t\tc. Have been in active existence for at least five years; and\n\t\t\td. Have a constitution and bylaws which provide that: (i) the association or associations hold regular meetings not less than annually to further purposes of the members, (ii) except for credit unions, the association or associations collect dues or solicit contributions from members, and (iii) the members have voting privileges and representation on the governing board and committees.2\n\nThe policy shall be subject to the following requirements:\n\t\t\t\ta. The policy may insure members of such association or associations, employees thereof or employees of members, or one or more of the preceding or all of any class or classes thereof for the benefit of persons other than the employee’s employer.\n\t\t\t\tb. The premium for the policy shall be paid from funds contributed by the association or associations, or by employer members, or by both, or from funds contributed by the covered persons or from both the covered persons and the association, associations, or employer members.\n\t\t\t\tc. Except as provided in clause d of this subdivision, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons, except those who reject such coverage in writing.\n\t\t\t\td. An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.F\n\nA policy issued to a credit union or to a trustee or trustees or agent designated by two or more credit unions, which credit union, trustee, trustees, or agent shall be deemed policyholder, to insure members of such credit union or credit unions for the benefit of persons other than the credit union or credit unions, trustee or trustees, or agent or any of their officials, subject to the following requirements:1\n\nThe members eligible for insurance shall be all of the members of the credit union or credit unions, or all of any class or classes thereof.2\n\nThe premium for the policy shall be paid by the policyholder from the credit union’s funds and, except as provided in subdivision 3 of this subsection, must insure all eligible members.3\n\nAn insurer may exclude or limit the coverage on any member as to whom evidence of individual insurability is not satisfactory to the insurer.G\n\nA policy issued to an incorporated association as described in \u00a7 38.2-4000, whose principal purpose is to assist its members in (i) financial planning for their funerals and burials and (ii) obtaining insurance for the payment, in whole or in part, for funeral, burial and other expenses. The association shall be deemed the policyholder, to insure the members of the association for the benefit of persons other than the association. The policy shall be subject to the following requirements:1\n\nA policy may not be issued to an association in which membership is conditioned upon the member’s designation at any time of a specific funeral director or cemetery as the beneficiary under the insurance, so as to deprive the representatives or family of the deceased member from, or in any way control them in, obtaining funeral supplies and services in an open competitive market.2\n\nThe policy shall insure members of such association.3\n\nThe premium for the policy shall be paid from funds contributed by the association, or from funds contributed by the covered persons, or both.4\n\nExcept as provided in subdivision 5 of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons except those who reject the coverage in writing.5\n\nAn insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.","order_by":null,"text":{"0":{"id":260240,"text":"Except as provided in \u00a7 38.2-3319.1, no policy of group life insurance shall be delivered in this Commonwealth unless it conforms to one of the following descriptions:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"A"},"1":{"id":260241,"text":"A policy issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer, subject to the following requirements:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"","next_prefix":"A1"},"2":{"id":260242,"text":"The employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any class or classes thereof. The policy may provide that the term “employees” include:\n\t\t\t\ta. The employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships, or partnerships is under common control;\n\t\t\t\tb. The individual proprietor or partners if the employer is an individual proprietorship or partnership;\n\t\t\t\tc. Retired employees, former employees and directors of a corporate employer; or\n\t\t\t\td. If the policy is issued to insure the employees of a public body, elected or appointed officials.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"3":{"id":260243,"text":"The premium for the policy shall be paid either from the employer’s funds or from funds contributed by the insured employees, 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 funds contributed by the insured employees must insure all eligible employees, except those who reject such coverage in writing.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"4":{"id":260244,"text":"An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"5":{"id":260245,"text":"A policy which is:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"6":{"id":260246,"text":"Not subject to Chapter 37.1 (§ 38.2-3727 et seq.) of this title, and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"7":{"id":260247,"text":"Issued to a creditor or its parent holding company or to a trustee or 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:\n\t\t\t\ta. 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 thereof. The policy may provide that the term “debtors” includes:","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B21"},"8":{"id":260248,"text":"Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction;","type":"section","prefixes":["B","2","1"],"prefix":"1","entire_prefix":"B21","prefix_anchor":"B21","level":3,"prior_prefix":"B2","next_prefix":"B22"},"9":{"id":260249,"text":"The debtors of one or more subsidiary corporations; and","type":"section","prefixes":["B","2","2"],"prefix":"2","entire_prefix":"B22","prefix_anchor":"B22","level":3,"prior_prefix":"B21","next_prefix":"B23"},"10":{"id":260250,"text":"The debtors of one or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of such affiliated corporations, proprietorships, or partnerships is under common control.\n\t\t\t\t\tb. The premium for the policy shall be paid 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 funds contributed by insured debtors specifically for their insurance must insure all eligible debtors.","type":"section","prefixes":["B","2","3"],"prefix":"3","entire_prefix":"B23","prefix_anchor":"B23","level":3,"prior_prefix":"B22","next_prefix":"B3"},"11":{"id":260251,"text":"An insurer may exclude any debtors as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B23","next_prefix":"B4"},"12":{"id":260252,"text":"The amount of the insurance on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"13":{"id":260253,"text":"The insurance may be payable to the creditor or any successor to the right, title, and interest of the creditor. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment and any excess of the insurance shall be payable to the estate of the insured.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"14":{"id":260254,"text":"Notwithstanding the provisions of the above subsections, insurance on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a nondecreasing or level term plan. Insurance on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan.","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"C"},"15":{"id":260255,"text":"A policy issued to a labor union, or similar employee organization, which shall be deemed to be the policyholder, to insure members of such union or organization for the benefit of persons other than the union or organization or any of its officials, representatives, or agents, subject to the following requirements:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B6","next_prefix":"C1"},"16":{"id":260256,"text":"The members eligible for insurance under the policy shall be all of the members of the union or organization, or all of any class or classes thereof.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"17":{"id":260257,"text":"The premium for the policy shall be paid either from funds of the union or organization, or from funds contributed by the insured members specifically for their insurance, 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 funds contributed by the insured members specifically for their insurance must insure all eligible members, except those who reject such coverage in writing.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"18":{"id":260258,"text":"An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"19":{"id":260259,"text":"A policy issued to or for (i) a multiple employer welfare arrangement, a rural electric cooperative, or a rural electric telephone cooperative as these terms are defined in 29 U.S.C. \u00a7 1002, or (ii) a trust or to the trustees of a fund established or adopted by two or more employers, or by one or more labor unions or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, which trust or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or organizations for the benefit of persons other than the employees or the unions or organizations, subject to the following requirements:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"D1"},"20":{"id":260260,"text":"The persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions or organizations, or all of any class or classes thereof. The policy may provide that the term employees includes:\n\t\t\t\ta. The employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships or partnerships is under common control;\n\t\t\t\tb. The individual proprietor or partners if the employer is an individual proprietorship or partnership;\n\t\t\t\tc. Retired employees, former employees and directors of a corporate employer; or\n\t\t\t\td. The trustees or their employees, or both, if their duties are principally connected with such trusteeship.","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"21":{"id":260261,"text":"The premium for the policy shall be paid from funds contributed by the employer or employers of the insured persons, or by the union or unions or similar employee organizations, or by both, or from funds contributed by the insured persons or from both the insured persons and the employers or unions or similar employee organizations. Except as provided in subdivision 3 of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured persons specifically for their insurance must insure all eligible persons, except those who reject such coverage in writing.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"22":{"id":260262,"text":"An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"E"},"23":{"id":260263,"text":"1. A policy issued to an association or to a trust or to the trustees of a fund established, created, or maintained for the benefit of members of one or more associations. The association or associations shall:\n\t\t\ta. Have at the outset a minimum of 100 persons;\n\t\t\tb. Have been organized and maintained in good faith for purposes other than that of obtaining insurance;\n\t\t\tc. Have been in active existence for at least five years; and\n\t\t\td. Have a constitution and bylaws which provide that: (i) the association or associations hold regular meetings not less than annually to further purposes of the members, (ii) except for credit unions, the association or associations collect dues or solicit contributions from members, and (iii) the members have voting privileges and representation on the governing board and committees.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D3","next_prefix":"E2"},"24":{"id":260264,"text":"The policy shall be subject to the following requirements:\n\t\t\t\ta. The policy may insure members of such association or associations, employees thereof or employees of members, or one or more of the preceding or all of any class or classes thereof for the benefit of persons other than the employee’s employer.\n\t\t\t\tb. The premium for the policy shall be paid from funds contributed by the association or associations, or by employer members, or by both, or from funds contributed by the covered persons or from both the covered persons and the association, associations, or employer members.\n\t\t\t\tc. Except as provided in clause d of this subdivision, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons, except those who reject such coverage in writing.\n\t\t\t\td. An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E","next_prefix":"F"},"25":{"id":260265,"text":"A policy issued to a credit union or to a trustee or trustees or agent designated by two or more credit unions, which credit union, trustee, trustees, or agent shall be deemed policyholder, to insure members of such credit union or credit unions for the benefit of persons other than the credit union or credit unions, trustee or trustees, or agent or any of their officials, subject to the following requirements:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E2","next_prefix":"F1"},"26":{"id":260266,"text":"The members eligible for insurance shall be all of the members of the credit union or credit unions, or all of any class or classes thereof.","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"27":{"id":260267,"text":"The premium for the policy shall be paid by the policyholder from the credit union’s funds and, except as provided in subdivision 3 of this subsection, must insure all eligible members.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"F3"},"28":{"id":260268,"text":"An insurer may exclude or limit the coverage on any member as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"G"},"29":{"id":260269,"text":"A policy issued to an incorporated association as described in \u00a7 38.2-4000, whose principal purpose is to assist its members in (i) financial planning for their funerals and burials and (ii) obtaining insurance for the payment, in whole or in part, for funeral, burial and other expenses. The association shall be deemed the policyholder, to insure the members of the association for the benefit of persons other than the association. The policy shall be subject to the following requirements:","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F3","next_prefix":"G1"},"30":{"id":260270,"text":"A policy may not be issued to an association in which membership is conditioned upon the member’s designation at any time of a specific funeral director or cemetery as the beneficiary under the insurance, so as to deprive the representatives or family of the deceased member from, or in any way control them in, obtaining funeral supplies and services in an open competitive market.","type":"section","prefixes":["G","1"],"prefix":"1","entire_prefix":"G1","prefix_anchor":"G1","level":2,"prior_prefix":"G","next_prefix":"G2"},"31":{"id":260271,"text":"The policy shall insure members of such association.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G1","next_prefix":"G3"},"32":{"id":260272,"text":"The premium for the policy shall be paid from funds contributed by the association, or from funds contributed by the covered persons, or both.","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"33":{"id":260273,"text":"Except as provided in subdivision 5 of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons except those who reject the coverage in writing.","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"G5"},"34":{"id":260274,"text":"An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.","type":"section","prefixes":["G","5"],"prefix":"5","entire_prefix":"G5","prefix_anchor":"G5","level":2,"prior_prefix":"G4"}},"ancestry":[{"id":14882,"edition_id":1,"name":"Group Life Insurance Policies","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13164,"metadata":{},"date_created":"2026-06-26 03:50:32","date_modified":"2026-06-26 03:50:32","permalink":{"id":214707,"object_type":"structure","relational_id":14882,"identifier":"2","token":"38.2\/33\/2","url":"\/38.2\/33\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13164,"edition_id":1,"name":"Life Insurance Policies","identifier":"33","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:22","date_modified":"2026-06-26 03:44:22","permalink":{"id":214627,"object_type":"structure","relational_id":13164,"identifier":"33","token":"38.2\/33","url":"\/38.2\/33\/","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":81796,"structure_id":14882,"section_number":"38.2-3318","catch_line":"Repealed","url":"\/38.2-3318\/","token":"38.2\/33\/2\/38.2-3318","metadata":false},{"id":72251,"structure_id":14882,"section_number":"38.2-3318.1","catch_line":"Group life insurance requirements","url":"\/38.2-3318.1\/","token":"38.2\/33\/2\/38.2-3318.1","metadata":false},{"id":56826,"structure_id":14882,"section_number":"38.2-3319","catch_line":"Repealed","url":"\/38.2-3319\/","token":"38.2\/33\/2\/38.2-3319","metadata":false},{"id":61497,"structure_id":14882,"section_number":"38.2-3319.1","catch_line":"Limits of group life insurance","url":"\/38.2-3319.1\/","token":"38.2\/33\/2\/38.2-3319.1","metadata":false},{"id":59025,"structure_id":14882,"section_number":"38.2-3319.2","catch_line":"Review of records","url":"\/38.2-3319.2\/","token":"38.2\/33\/2\/38.2-3319.2","metadata":false},{"id":76112,"structure_id":14882,"section_number":"38.2-3320","catch_line":"Repealed","url":"\/38.2-3320\/","token":"38.2\/33\/2\/38.2-3320","metadata":false},{"id":84493,"structure_id":14882,"section_number":"38.2-3320.1","catch_line":"Policies issued outside of the Commonwealth of Virginia","url":"\/38.2-3320.1\/","token":"38.2\/33\/2\/38.2-3320.1","metadata":false},{"id":57879,"structure_id":14882,"section_number":"38.2-3321","catch_line":"Repealed","url":"\/38.2-3321\/","token":"38.2\/33\/2\/38.2-3321","metadata":false},{"id":75114,"structure_id":14882,"section_number":"38.2-3321.1","catch_line":"Requirements for those marketing group life insurance","url":"\/38.2-3321.1\/","token":"38.2\/33\/2\/38.2-3321.1","metadata":false},{"id":84150,"structure_id":14882,"section_number":"38.2-3322","catch_line":"Repealed","url":"\/38.2-3322\/","token":"38.2\/33\/2\/38.2-3322","metadata":false},{"id":59222,"structure_id":14882,"section_number":"38.2-3322.1","catch_line":"Regulations","url":"\/38.2-3322.1\/","token":"38.2\/33\/2\/38.2-3322.1","metadata":false},{"id":83887,"structure_id":14882,"section_number":"38.2-3322.2","catch_line":"Lives covered","url":"\/38.2-3322.2\/","token":"38.2\/33\/2\/38.2-3322.2","metadata":false},{"id":79808,"structure_id":14882,"section_number":"38.2-3323","catch_line":"Group life insurance coverages of spouses, dependent children, and other persons","url":"\/38.2-3323\/","token":"38.2\/33\/2\/38.2-3323","metadata":false},{"id":77746,"structure_id":14882,"section_number":"38.2-3324","catch_line":"Standard provisions required; exceptions","url":"\/38.2-3324\/","token":"38.2\/33\/2\/38.2-3324","metadata":false},{"id":71152,"structure_id":14882,"section_number":"38.2-3325","catch_line":"Grace period","url":"\/38.2-3325\/","token":"38.2\/33\/2\/38.2-3325","metadata":false},{"id":67833,"structure_id":14882,"section_number":"38.2-3326","catch_line":"Incontestability","url":"\/38.2-3326\/","token":"38.2\/33\/2\/38.2-3326","metadata":false},{"id":70998,"structure_id":14882,"section_number":"38.2-3327","catch_line":"Entire contract; statements deemed representations","url":"\/38.2-3327\/","token":"38.2\/33\/2\/38.2-3327","metadata":false},{"id":73714,"structure_id":14882,"section_number":"38.2-3328","catch_line":"Evidence of individual insurability","url":"\/38.2-3328\/","token":"38.2\/33\/2\/38.2-3328","metadata":false},{"id":74239,"structure_id":14882,"section_number":"38.2-3329","catch_line":"Misstatement of age","url":"\/38.2-3329\/","token":"38.2\/33\/2\/38.2-3329","metadata":false},{"id":74735,"structure_id":14882,"section_number":"38.2-3330","catch_line":"Payment of benefits","url":"\/38.2-3330\/","token":"38.2\/33\/2\/38.2-3330","metadata":false},{"id":81154,"structure_id":14882,"section_number":"38.2-3331","catch_line":"Individual certificates","url":"\/38.2-3331\/","token":"38.2\/33\/2\/38.2-3331","metadata":false},{"id":73575,"structure_id":14882,"section_number":"38.2-3332","catch_line":"Right to individual policy upon termination of employment or membership","url":"\/38.2-3332\/","token":"38.2\/33\/2\/38.2-3332","metadata":false},{"id":63366,"structure_id":14882,"section_number":"38.2-3333","catch_line":"Right to individual policy upon termination of group policy or elimination of class of insured persons","url":"\/38.2-3333\/","token":"38.2\/33\/2\/38.2-3333","metadata":false},{"id":80545,"structure_id":14882,"section_number":"38.2-3334","catch_line":"Death after termination of group insurance and before issuance of individual policy","url":"\/38.2-3334\/","token":"38.2\/33\/2\/38.2-3334","metadata":false},{"id":69882,"structure_id":14882,"section_number":"38.2-3335","catch_line":"Additional persons becoming eligible","url":"\/38.2-3335\/","token":"38.2\/33\/2\/38.2-3335","metadata":false},{"id":74096,"structure_id":14882,"section_number":"38.2-3336","catch_line":"Provisions required by other jurisdictions","url":"\/38.2-3336\/","token":"38.2\/33\/2\/38.2-3336","metadata":false},{"id":77526,"structure_id":14882,"section_number":"38.2-3337","catch_line":"Assignment","url":"\/38.2-3337\/","token":"38.2\/33\/2\/38.2-3337","metadata":false},{"id":70437,"structure_id":14882,"section_number":"38.2-3338","catch_line":"Provisions prohibited","url":"\/38.2-3338\/","token":"38.2\/33\/2\/38.2-3338","metadata":false},{"id":80534,"structure_id":14882,"section_number":"38.2-3339","catch_line":"Exemption of group life insurance policies from legal process","url":"\/38.2-3339\/","token":"38.2\/33\/2\/38.2-3339","metadata":false}],"previous_section":{"id":81796,"structure_id":14882,"section_number":"38.2-3318","catch_line":"Repealed","url":"\/38.2-3318\/","token":"38.2\/33\/2\/38.2-3318","metadata":false},"next_section":{"id":56826,"structure_id":14882,"section_number":"38.2-3319","catch_line":"Repealed","url":"\/38.2-3319\/","token":"38.2\/33\/2\/38.2-3319","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3318.1\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapter 154<\/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":[{"id":67482,"section_number":"38.2-1800","catch_line":"Definitions","order_by":null,"url":"\/38.2-1800\/"},{"id":61497,"section_number":"38.2-3319.1","catch_line":"Limits of group life insurance","order_by":null,"url":"\/38.2-3319.1\/"},{"id":59025,"section_number":"38.2-3319.2","catch_line":"Review of records","order_by":null,"url":"\/38.2-3319.2\/"},{"id":84493,"section_number":"38.2-3320.1","catch_line":"Policies issued outside of the Commonwealth of Virginia","order_by":null,"url":"\/38.2-3320.1\/"},{"id":75114,"section_number":"38.2-3321.1","catch_line":"Requirements for those marketing group life insurance","order_by":null,"url":"\/38.2-3321.1\/"},{"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":81154,"section_number":"38.2-3331","catch_line":"Individual certificates","order_by":null,"url":"\/38.2-3331\/"}],"refers_to":[{"id":61497,"section_number":"38.2-3319.1","catch_line":"Limits of group life insurance","order_by":null,"url":"\/38.2-3319.1\/"},{"id":64017,"section_number":"38.2-3727","catch_line":"Credit accident and sickness insurance rates","order_by":null,"url":"\/38.2-3727\/"},{"id":65613,"section_number":"38.2-4000","catch_line":"Societies to which chapter applies","order_by":null,"url":"\/38.2-4000\/"}],"permalink":{"id":214713,"object_type":"law","relational_id":72251,"identifier":"38.2-3318.1","token":"38.2\/33\/2\/38.2-3318.1","url":"\/38.2-3318.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3318.1\/","token":"38.2\/33\/2\/38.2-3318.1","dublin_core":{"Title":"Group life insurance requirements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3318.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Except as provided in \u00a7 38.2-3319.1<\/a>, no policy of group life insurance<\/span> shall be delivered in this Commonwealth unless it conforms to one of the following descriptions:<\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> A policy issued to an employer, or to the trustees of a fund established by an employer, which employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons<\/span> other than the employer, subject to the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The employees eligible for insurance<\/span> under the policy shall be all of the employees of the employer, or all of any class or classes thereof. The policy may provide that the term “employees” include:\n\t\t\t\ta. The employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships, or partnerships is under common control;\n\t\t\t\tb. The individual proprietor or partners if the employer is an individual proprietorship or partnership;\n\t\t\t\tc. Retired employees, former employees and directors of a corporate employer; or\n\t\t\t\td. If the policy is issued to insure the employees of a public body, elected or appointed officials. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The premium for the policy shall be paid either from the employer’s funds or from funds contributed by the insured employees, 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 funds contributed by the insured employees must insure all eligible employees, except those who reject such coverage in writing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> may exclude or limit the coverage on any person<\/span> as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A policy which is: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Not subject to Chapter 37.1 (§ 38.2-3727<\/a> et seq.) of this title, and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Issued to a creditor<\/span> or its parent holding company<\/span> or to a trustee or trustees or agent designated by two or more creditors<\/span>, which creditor<\/span>, holding company<\/span>, affiliate, trustee, trustees or agent shall be deemed the policyholder, to insure debtors of the creditor<\/span>, or creditors<\/span>, subject to the following requirements:\n\t\t\t\ta. The debtors eligible for insurance<\/span> under the policy shall be all of the debtors of the creditor<\/span> or creditors<\/span>, or all of any class or classes thereof. The policy may provide that the term “debtors” includes: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Borrowers of money or purchasers or lessees of goods, services, or property for which payment is arranged through a credit transaction; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The debtors of one or more subsidiary corporations; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The debtors of one or more affiliated corporations, proprietorships, or partnerships if the business of the policyholder and of such affiliated corporations, proprietorships, or partnerships is under common control.\n\t\t\t\t\tb. The premium for the policy shall be paid either from the creditor<\/span>’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 funds contributed by insured debtors specifically for their insurance<\/span> must insure all eligible debtors. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> may exclude any debtors as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The amount of the insurance<\/span> on the life of any debtor shall at no time exceed the greater of the scheduled or actual amount of unpaid indebtedness to the creditor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The insurance<\/span> may be payable to the creditor<\/span> or any successor to the right, title, and interest of the creditor<\/span>. Such payment shall reduce or extinguish the unpaid indebtedness of the debtor to the extent of such payment and any excess of the insurance<\/span> shall be payable to the estate of the insured. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Notwithstanding the provisions of the above subsections, insurance<\/span> on agricultural credit transaction commitments may be written up to the amount of the loan commitment on a nondecreasing or level term plan. Insurance<\/span> on educational credit transaction commitments may be written up to the amount of the loan commitment less the amount of any repayments made on the loan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A policy issued to a labor union, or similar employee organization, which shall be deemed to be the policyholder, to insure members of such union or organization for the benefit of persons<\/span> other than the union or organization or any of its officials, representatives, or agents, subject to the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The members eligible for insurance<\/span> under the policy shall be all of the members of the union or organization, or all of any class or classes thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The premium for the policy shall be paid either from funds of the union or organization, or from funds contributed by the insured members specifically for their insurance<\/span>, 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 funds contributed by the insured members specifically for their insurance<\/span> must insure all eligible members, except those who reject such coverage in writing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> may exclude or limit the coverage on any person<\/span> as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A policy issued to or for (i) a multiple employer welfare arrangement, a rural electric cooperative, or a rural electric telephone cooperative as these terms are defined in 29 U.S.C. \u00a7 1002, or (ii) a trust or to the trustees of a fund established or adopted by two or more employers, or by one or more labor unions or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, which trust or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or organizations for the benefit of persons<\/span> other than the employees or the unions or organizations, subject to the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The persons<\/span> eligible for insurance<\/span> shall be all of the employees of the employers or all of the members of the unions or organizations, or all of any class or classes thereof. The policy may provide that the term employees includes:\n\t\t\t\ta. The employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships or partnerships if the business of the employer and of such affiliated corporations, proprietorships or partnerships is under common control;\n\t\t\t\tb. The individual proprietor or partners if the employer is an individual proprietorship or partnership;\n\t\t\t\tc. Retired employees, former employees and directors of a corporate employer; or\n\t\t\t\td. The trustees or their employees, or both, if their duties are principally connected with such trusteeship. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The premium for the policy shall be paid from funds contributed by the employer or employers of the insured persons<\/span>, or by the union or unions or similar employee organizations, or by both, or from funds contributed by the insured persons<\/span> or from both the insured persons<\/span> and the employers or unions or similar employee organizations. Except as provided in subdivision 3 of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured persons<\/span> specifically for their insurance<\/span> must insure all eligible persons<\/span>, except those who reject such coverage in writing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> may exclude or limit the coverage on any person<\/span> as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> 1. A policy issued to an association or to a trust or to the trustees of a fund established, created, or maintained for the benefit of members of one or more associations. The association or associations shall:\n\t\t\ta. Have at the outset a minimum of 100 persons<\/span>;\n\t\t\tb. Have been organized and maintained in good faith for purposes other than that of obtaining insurance<\/span>;\n\t\t\tc. Have been in active existence for at least five years; and\n\t\t\td. Have a constitution and bylaws which provide that: (i) the association or associations hold regular meetings not less than annually to further purposes of the members, (ii) except for credit unions, the association or associations collect dues or solicit contributions from members, and (iii) the members have voting privileges<\/span> and representation on the governing board and committees. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The policy shall be subject to the following requirements:\n\t\t\t\ta. The policy may insure members of such association or associations, employees thereof or employees of members, or one or more of the preceding or all of any class or classes thereof for the benefit of persons<\/span> other than the employee’s employer.\n\t\t\t\tb. The premium for the policy shall be paid from funds contributed by the association or associations, or by employer members, or by both, or from funds contributed by the covered persons<\/span> or from both the covered persons<\/span> and the association, associations, or employer members.\n\t\t\t\tc. Except as provided in clause d of this subdivision, a policy on which no part of the premium is to be derived from funds contributed by the covered persons<\/span> specifically for the insurance<\/span> must insure all eligible persons<\/span>, except those who reject such coverage in writing.\n\t\t\t\td. An insurer<\/span> may exclude or limit the coverage on any person<\/span> as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A policy issued to a credit union or to a trustee or trustees or agent designated by two or more credit unions, which credit union, trustee, trustees, or agent shall be deemed policyholder, to insure members of such credit union or credit unions for the benefit of persons<\/span> other than the credit union or credit unions, trustee or trustees, or agent or any of their officials, subject to the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The members eligible for insurance<\/span> shall be all of the members of the credit union or credit unions, or all of any class or classes thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The premium for the policy shall be paid by the policyholder from the credit union’s funds and, except as provided in subdivision 3 of this subsection, must insure all eligible members. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> may exclude or limit the coverage on any member as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> A policy issued to an incorporated association as described in \u00a7 38.2-4000<\/a>, whose principal purpose is to assist its members in (i) financial planning for their funerals and burials and (ii) obtaining insurance<\/span> for the payment, in whole or in part, for funeral, burial and other expenses. The association shall be deemed the policyholder, to insure the members of the association for the benefit of persons<\/span> other than the association. The policy shall be subject to the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A policy may not be issued to an association in which membership is conditioned upon the member’s designation at any time of a specific funeral director or cemetery as the beneficiary under the insurance<\/span>, so as to deprive the representatives or family of the deceased member from, or in any way control them in, obtaining funeral supplies and services in an open competitive market. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The policy shall insure members of such association. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The premium for the policy shall be paid from funds contributed by the association, or from funds contributed by the covered persons<\/span>, or both. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Except as provided in subdivision 5 of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the covered persons<\/span> specifically for the insurance<\/span> must insure all eligible persons<\/span> except those who reject the coverage in writing. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> An insurer<\/span> may exclude or limit the coverage on any person<\/span> as to whom evidence<\/span> of individual insurability is not satisfactory to the insurer<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nGROUP LIFE INSURANCE REQUIREMENTS (\u00a7 38.2-3318.1)\n\nExcept as provided in \u00a7 38.2-3319.1, no policy of group life insurance shall be\ndelivered in this Commonwealth unless it conforms to one of the following\ndescriptions:\n\nA. A policy issued to an employer, or to the trustees of a fund established by\nan employer, which employer or trustees shall be deemed the policyholder, to\ninsure employees of the employer for the benefit of persons other than the\nemployer, subject to the following requirements:\n\n 1. The employees eligible for insurance under the policy shall be all of the\n employees of the employer, or all of any class or classes thereof. The policy\n may provide that the term “employees” include:\n \t\t\t\ta. The employees of one or more subsidiary corporations, and the\n employees, individual proprietors, and partners of one or more affiliated\n corporations, proprietorships or partnerships if the business of the employer\n and of such affiliated corporations, proprietorships, or partnerships is under\n common control;\n \t\t\t\tb. The individual proprietor or partners if the employer is an individual\n proprietorship or partnership;\n \t\t\t\tc. Retired employees, former employees and directors of a corporate\n employer; or\n \t\t\t\td. If the policy is issued to insure the employees of a public body,\n elected or appointed officials.\n\n 2. The premium for the policy shall be paid either from the employer’s\n funds or from funds contributed by the insured employees, or from both. Except\n as provided in subdivision 3 of this subsection, a policy on which no part of\n the premium is to be derived from funds contributed by the insured employees\n must insure all eligible employees, except those who reject such coverage in\n writing.\n\n 3. An insurer may exclude or limit the coverage on any person as to whom\n evidence of individual insurability is not satisfactory to the insurer.\n\nB. A policy which is:\n\n 1. Not subject to Chapter 37.1 (§ 38.2-3727 et seq.) of this title, and\n\n 2. Issued to a creditor or its parent holding company or to a trustee or\n trustees or agent designated by two or more creditors, which creditor, holding\n company, affiliate, trustee, trustees or agent shall be deemed the\n policyholder, to insure debtors of the creditor, or creditors, subject to the\n following requirements:\n \t\t\t\ta. The debtors eligible for insurance under the policy shall be all of the\n debtors of the creditor or creditors, or all of any class or classes thereof.\n The policy may provide that the term “debtors” includes:\n\n 1. Borrowers of money or purchasers or lessees of goods, services, or\n property for which payment is arranged through a credit transaction;\n\n 2. The debtors of one or more subsidiary corporations; and\n\n 3. The debtors of one or more affiliated corporations, proprietorships, or\n partnerships if the business of the policyholder and of such affiliated\n corporations, proprietorships, or partnerships is under common control.\n \t\t\t\t\tb. The premium for the policy shall be paid either from the\n creditor’s funds, or from charges collected from the insured debtors,\n or from both. Except as provided in subdivision 3 of this subsection, a\n policy on which no part of the premium is to be derived from the funds\n contributed by insured debtors specifically for their insurance must insure\n all eligible debtors.\n\n 3. An insurer may exclude any debtors as to whom evidence of individual\n insurability is not satisfactory to the insurer.\n\n 4. The amount of the insurance on the life of any debtor shall at no time\n exceed the greater of the scheduled or actual amount of unpaid indebtedness to\n the creditor.\n\n 5. The insurance may be payable to the creditor or any successor to the right,\n title, and interest of the creditor. Such payment shall reduce or extinguish\n the unpaid indebtedness of the debtor to the extent of such payment and any\n excess of the insurance shall be payable to the estate of the insured.\n\n 6. Notwithstanding the provisions of the above subsections, insurance on\n agricultural credit transaction commitments may be written up to the amount of\n the loan commitment on a nondecreasing or level term plan. Insurance on\n educational credit transaction commitments may be written up to the amount of\n the loan commitment less the amount of any repayments made on the loan.\n\nC. A policy issued to a labor union, or similar employee organization, which\nshall be deemed to be the policyholder, to insure members of such union or\norganization for the benefit of persons other than the union or organization or\nany of its officials, representatives, or agents, subject to the following\nrequirements:\n\n 1. The members eligible for insurance under the policy shall be all of the\n members of the union or organization, or all of any class or classes thereof.\n\n 2. The premium for the policy shall be paid either from funds of the union or\n organization, or from funds contributed by the insured members specifically\n for their insurance, or from both. Except as provided in subdivision 3 of this\n subsection, a policy on which no part of the premium is to be derived from\n funds contributed by the insured members specifically for their insurance must\n insure all eligible members, except those who reject such coverage in writing.\n\n 3. An insurer may exclude or limit the coverage on any person as to whom\n evidence of individual insurability is not satisfactory to the insurer.\n\nD. A policy issued to or for (i) a multiple employer welfare arrangement, a\nrural electric cooperative, or a rural electric telephone cooperative as these\nterms are defined in 29 U.S.C. \u00a7 1002, or (ii) a trust or to the trustees of a\nfund established or adopted by two or more employers, or by one or more labor\nunions or similar employee organizations, or by one or more employers and one or\nmore labor unions or similar employee organizations, which trust or trustees\nshall be deemed the policyholder, to insure employees of the employers or\nmembers of the unions or organizations for the benefit of persons other than the\nemployees or the unions or organizations, subject to the following requirements:\n\n 1. The persons eligible for insurance shall be all of the employees of the\n employers or all of the members of the unions or organizations, or all of any\n class or classes thereof. The policy may provide that the term employees\n includes:\n \t\t\t\ta. The employees of one or more subsidiary corporations, and the\n employees, individual proprietors, and partners of one or more affiliated\n corporations, proprietorships or partnerships if the business of the employer\n and of such affiliated corporations, proprietorships or partnerships is under\n common control;\n \t\t\t\tb. The individual proprietor or partners if the employer is an individual\n proprietorship or partnership;\n \t\t\t\tc. Retired employees, former employees and directors of a corporate\n employer; or\n \t\t\t\td. The trustees or their employees, or both, if their duties are\n principally connected with such trusteeship.\n\n 2. The premium for the policy shall be paid from funds contributed by the\n employer or employers of the insured persons, or by the union or unions or\n similar employee organizations, or by both, or from funds contributed by the\n insured persons or from both the insured persons and the employers or unions\n or similar employee organizations. Except as provided in subdivision 3 of this\n subsection, a policy on which no part of the premium is to be derived from\n funds contributed by the insured persons specifically for their insurance must\n insure all eligible persons, except those who reject such coverage in writing.\n\n 3. An insurer may exclude or limit the coverage on any person as to whom\n evidence of individual insurability is not satisfactory to the insurer.\n\nE. 1. A policy issued to an association or to a trust or to the trustees of a\nfund established, created, or maintained for the benefit of members of one or\nmore associations. The association or associations shall:\n\t\t\ta. Have at the outset a minimum of 100 persons;\n\t\t\tb. Have been organized and maintained in good faith for purposes other than\nthat of obtaining insurance;\n\t\t\tc. Have been in active existence for at least five years; and\n\t\t\td. Have a constitution and bylaws which provide that: (i) the association or\nassociations hold regular meetings not less than annually to further purposes of\nthe members, (ii) except for credit unions, the association or associations\ncollect dues or solicit contributions from members, and (iii) the members have\nvoting privileges and representation on the governing board and committees.\n\n 2. The policy shall be subject to the following requirements:\n \t\t\t\ta. The policy may insure members of such association or associations,\n employees thereof or employees of members, or one or more of the preceding or\n all of any class or classes thereof for the benefit of persons other than the\n employee’s employer.\n \t\t\t\tb. The premium for the policy shall be paid from funds contributed by the\n association or associations, or by employer members, or by both, or from funds\n contributed by the covered persons or from both the covered persons and the\n association, associations, or employer members.\n \t\t\t\tc. Except as provided in clause d of this subdivision, a policy on which\n no part of the premium is to be derived from funds contributed by the covered\n persons specifically for the insurance must insure all eligible persons,\n except those who reject such coverage in writing.\n \t\t\t\td. An insurer may exclude or limit the coverage on any person as to whom\n evidence of individual insurability is not satisfactory to the insurer.\n\nF. A policy issued to a credit union or to a trustee or trustees or agent\ndesignated by two or more credit unions, which credit union, trustee, trustees,\nor agent shall be deemed policyholder, to insure members of such credit union or\ncredit unions for the benefit of persons other than the credit union or credit\nunions, trustee or trustees, or agent or any of their officials, subject to the\nfollowing requirements:\n\n 1. The members eligible for insurance shall be all of the members of the\n credit union or credit unions, or all of any class or classes thereof.\n\n 2. The premium for the policy shall be paid by the policyholder from the\n credit union’s funds and, except as provided in subdivision 3 of this\n subsection, must insure all eligible members.\n\n 3. An insurer may exclude or limit the coverage on any member as to whom\n evidence of individual insurability is not satisfactory to the insurer.\n\nG. A policy issued to an incorporated association as described in \u00a7 38.2-4000,\nwhose principal purpose is to assist its members in (i) financial planning for\ntheir funerals and burials and (ii) obtaining insurance for the payment, in\nwhole or in part, for funeral, burial and other expenses. The association shall\nbe deemed the policyholder, to insure the members of the association for the\nbenefit of persons other than the association. The policy shall be subject to\nthe following requirements:\n\n 1. A policy may not be issued to an association in which membership is\n conditioned upon the member’s designation at any time of a specific\n funeral director or cemetery as the beneficiary under the insurance, so as to\n deprive the representatives or family of the deceased member from, or in any\n way control them in, obtaining funeral supplies and services in an open\n competitive market.\n\n 2. The policy shall insure members of such association.\n\n 3. The premium for the policy shall be paid from funds contributed by the\n association, or from funds contributed by the covered persons, or both.\n\n 4. Except as provided in subdivision 5 of this subsection, a policy on which\n no part of the premium is to be derived from funds contributed by the covered\n persons specifically for the insurance must insure all eligible persons except\n those who reject the coverage in writing.\n\n 5. An insurer may exclude or limit the coverage on any person as to whom\n evidence of individual insurability is not satisfactory to the insurer.\n\nHISTORY: 1998, c. 154.","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}}