{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3722.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3722.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3722.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3722.html"}],"law_id":74250,"edition_id":1,"section_id":74250,"structure_id":15016,"section_number":"38.2-3722","catch_line":"Variable interest rate indebtedness; amount; disclosure; refunds","history":"1984, c. 664, \u00a7 38.1-482.4:2; 1985, c. 234, \u00a7 38.2-3705; 1986, c. 562; 1992, c. 586.","full_text":"A\n\nNotwithstanding the terms of § 38.2-3720, if the credit transaction provides for a variable interest rate and the insurance premiums are calculated and charged on a single premium basis, the initial amount of insurance coverage shall not exceed the scheduled amounts of unpaid indebtedness based upon the initial contract interest rate; and the death benefit shall be equal to the scheduled amount of insurance at the date of death or the amount required to liquidate the indebtedness in accordance with the terms of the contract of indebtedness, whichever is greater. If the actual interest rate charged at any time exceeds the original contract interest rate, the term of the insurance shall continue without additional charge for a period not to exceed three months. No additional premiums shall be charged for any additional coverage provided beyond that included in the single premium charge.B\n\nEach individual policy or group certificate of credit insurance issued in connection with credit transactions involving variable interest rates shall include a disclosure (i) that the death benefit shall in no case be less than the insured scheduled amount of coverage or the amount required to liquidate the insured indebtedness in accordance with the terms of the contract of indebtedness, whichever is greater; and (ii) that the term of insurance shall continue for a period not to exceed three months if the actual interest rate charge at any time exceeds the original contract interest rate.C\n\nEach individual policy or group certificate of credit insurance issued in connection with credit transactions involving variable interest rates shall provide that in the event of termination of the insurance prior to the original scheduled maturity date of the indebtedness, a refund of any amount paid by the debtor for such insurance shall be made in accordance with § 38.2-3729. Such refund shall be based on the terms of the original loan and the actual elapsed time.\n\t\t\tFor a loan with a term of more than sixty-one months, computation of such refund using the actuarial method shall be deemed to comply with the requirements hereof. For a loan with a term of sixty-one months or less, computation of such refund using the Rule of 78 shall be deemed to comply with the requirement hereof.","order_by":null,"text":{"0":{"id":266953,"text":"Notwithstanding the terms of § 38.2-3720, if the credit transaction provides for a variable interest rate and the insurance premiums are calculated and charged on a single premium basis, the initial amount of insurance coverage shall not exceed the scheduled amounts of unpaid indebtedness based upon the initial contract interest rate; and the death benefit shall be equal to the scheduled amount of insurance at the date of death or the amount required to liquidate the indebtedness in accordance with the terms of the contract of indebtedness, whichever is greater. If the actual interest rate charged at any time exceeds the original contract interest rate, the term of the insurance shall continue without additional charge for a period not to exceed three months. No additional premiums shall be charged for any additional coverage provided beyond that included in the single premium charge.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":266954,"text":"Each individual policy or group certificate of credit insurance issued in connection with credit transactions involving variable interest rates shall include a disclosure (i) that the death benefit shall in no case be less than the insured scheduled amount of coverage or the amount required to liquidate the insured indebtedness in accordance with the terms of the contract of indebtedness, whichever is greater; and (ii) that the term of insurance shall continue for a period not to exceed three months if the actual interest rate charge at any time exceeds the original contract interest rate.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":266955,"text":"Each individual policy or group certificate of credit insurance issued in connection with credit transactions involving variable interest rates shall provide that in the event of termination of the insurance prior to the original scheduled maturity date of the indebtedness, a refund of any amount paid by the debtor for such insurance shall be made in accordance with § 38.2-3729. Such refund shall be based on the terms of the original loan and the actual elapsed time.\n\t\t\tFor a loan with a term of more than sixty-one months, computation of such refund using the actuarial method shall be deemed to comply with the requirements hereof. For a loan with a term of sixty-one months or less, computation of such refund using the Rule of 78 shall be deemed to comply with the requirement hereof.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":15016,"edition_id":1,"name":"Credit Life Insurance and Credit Accident and Sickness Insurance","identifier":"37.1","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:51:32","date_modified":"2026-06-26 03:51:32","permalink":{"id":216059,"object_type":"structure","relational_id":15016,"identifier":"37.1","token":"38.2\/37.1","url":"\/38.2\/37.1\/","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":78738,"structure_id":15016,"section_number":"38.2-3717","catch_line":"Scope","url":"\/38.2-3717\/","token":"38.2\/37.1\/38.2-3717","metadata":false},{"id":61942,"structure_id":15016,"section_number":"38.2-3718","catch_line":"Definitions","url":"\/38.2-3718\/","token":"38.2\/37.1\/38.2-3718","metadata":false},{"id":68352,"structure_id":15016,"section_number":"38.2-3719","catch_line":"Forms of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3719\/","token":"38.2\/37.1\/38.2-3719","metadata":false},{"id":71214,"structure_id":15016,"section_number":"38.2-3720","catch_line":"Amount of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3720\/","token":"38.2\/37.1\/38.2-3720","metadata":false},{"id":83437,"structure_id":15016,"section_number":"38.2-3721","catch_line":"Term of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3721\/","token":"38.2\/37.1\/38.2-3721","metadata":false},{"id":74250,"structure_id":15016,"section_number":"38.2-3722","catch_line":"Variable interest rate indebtedness; amount; disclosure; refunds","url":"\/38.2-3722\/","token":"38.2\/37.1\/38.2-3722","metadata":false},{"id":60031,"structure_id":15016,"section_number":"38.2-3723","catch_line":"Reserves","url":"\/38.2-3723\/","token":"38.2\/37.1\/38.2-3723","metadata":false},{"id":72023,"structure_id":15016,"section_number":"38.2-3724","catch_line":"Policy provisions; disclosure to debtors; delivery of policy or certificate","url":"\/38.2-3724\/","token":"38.2\/37.1\/38.2-3724","metadata":false},{"id":79475,"structure_id":15016,"section_number":"38.2-3725","catch_line":"Policy forms to be filed with Commission; approval or disapproval by Commission","url":"\/38.2-3725\/","token":"38.2\/37.1\/38.2-3725","metadata":false},{"id":81616,"structure_id":15016,"section_number":"38.2-3726","catch_line":"Credit life insurance rates","url":"\/38.2-3726\/","token":"38.2\/37.1\/38.2-3726","metadata":false},{"id":64017,"structure_id":15016,"section_number":"38.2-3727","catch_line":"Credit accident and sickness insurance rates","url":"\/38.2-3727\/","token":"38.2\/37.1\/38.2-3727","metadata":false},{"id":67560,"structure_id":15016,"section_number":"38.2-3728","catch_line":"Use of rates","url":"\/38.2-3728\/","token":"38.2\/37.1\/38.2-3728","metadata":false},{"id":77928,"structure_id":15016,"section_number":"38.2-3729","catch_line":"Refunds","url":"\/38.2-3729\/","token":"38.2\/37.1\/38.2-3729","metadata":false},{"id":76093,"structure_id":15016,"section_number":"38.2-3730","catch_line":"Experience reports and adjustment of prima facie rates","url":"\/38.2-3730\/","token":"38.2\/37.1\/38.2-3730","metadata":false},{"id":63767,"structure_id":15016,"section_number":"38.2-3731","catch_line":"Claims","url":"\/38.2-3731\/","token":"38.2\/37.1\/38.2-3731","metadata":false},{"id":78709,"structure_id":15016,"section_number":"38.2-3732","catch_line":"Insurer delegation of duties","url":"\/38.2-3732\/","token":"38.2\/37.1\/38.2-3732","metadata":false},{"id":76840,"structure_id":15016,"section_number":"38.2-3733","catch_line":"Portion of premium may be allowed to creditor; insurance may be provided and serviced at creditor's place of business","url":"\/38.2-3733\/","token":"38.2\/37.1\/38.2-3733","metadata":false},{"id":63261,"structure_id":15016,"section_number":"38.2-3734","catch_line":"License requirements","url":"\/38.2-3734\/","token":"38.2\/37.1\/38.2-3734","metadata":false},{"id":57264,"structure_id":15016,"section_number":"38.2-3735","catch_line":"Disclosure and readability","url":"\/38.2-3735\/","token":"38.2\/37.1\/38.2-3735","metadata":false},{"id":71653,"structure_id":15016,"section_number":"38.2-3736","catch_line":"Noncontributory coverage","url":"\/38.2-3736\/","token":"38.2\/37.1\/38.2-3736","metadata":false},{"id":69488,"structure_id":15016,"section_number":"38.2-3737","catch_line":"Application","url":"\/38.2-3737\/","token":"38.2\/37.1\/38.2-3737","metadata":false},{"id":70889,"structure_id":15016,"section_number":"38.2-3738","catch_line":"What laws applicable","url":"\/38.2-3738\/","token":"38.2\/37.1\/38.2-3738","metadata":false}],"previous_section":{"id":83437,"structure_id":15016,"section_number":"38.2-3721","catch_line":"Term of credit life insurance and credit accident and sickness insurance","url":"\/38.2-3721\/","token":"38.2\/37.1\/38.2-3721","metadata":false},"next_section":{"id":60031,"structure_id":15016,"section_number":"38.2-3723","catch_line":"Reserves","url":"\/38.2-3723\/","token":"38.2\/37.1\/38.2-3723","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3722\/","history_text":"

This law was first created in 1984. The record of its establishment is cataloged in chapter 664 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 1984 \u201cActs\u201d aren\u2019t available online. It has been modified 3 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 1985, chapter 234; in 1986, chapter 562; in 1992, chapter 586.<\/p>","references":false,"refers_to":[{"id":71214,"section_number":"38.2-3720","catch_line":"Amount of credit life insurance and credit accident and sickness insurance","order_by":null,"url":"\/38.2-3720\/"},{"id":77928,"section_number":"38.2-3729","catch_line":"Refunds","order_by":null,"url":"\/38.2-3729\/"}],"permalink":{"id":216081,"object_type":"law","relational_id":74250,"identifier":"38.2-3722","token":"38.2\/37.1\/38.2-3722","url":"\/38.2-3722\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3722\/","token":"38.2\/37.1\/38.2-3722","dublin_core":{"Title":"Variable interest rate indebtedness; amount; disclosure; refunds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3722","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding the terms of § 38.2-3720<\/a>, if the credit transaction<\/span> provides for a variable interest rate<\/span> and the insurance<\/span> premiums are calculated and charged on a single premium basis, the initial amount of insurance<\/span> coverage shall not exceed the scheduled amounts of unpaid indebtedness<\/span> based upon the initial contract<\/span> interest rate<\/span>; and the death benefit shall be equal to the scheduled amount of insurance<\/span> at the date of death or the amount required to liquidate the indebtedness<\/span> in accordance with the terms of the contract<\/span> of indebtedness<\/span>, whichever is greater. If the actual interest rate<\/span> charged at any time exceeds the original contract<\/span> interest rate<\/span>, the term of the insurance<\/span> shall continue without additional charge for a period not to exceed three months. No additional premiums shall be charged for any additional coverage provided beyond that included in the single premium charge. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each individual policy or group certificate of credit insurance<\/span> issued in connection with credit transactions<\/span> involving variable interest rates<\/span><\/span> shall include a disclosure (i) that the death benefit shall in no case be less than the insured scheduled amount of coverage or the amount required to liquidate the insured indebtedness<\/span> in accordance with the terms of the contract<\/span> of indebtedness<\/span>, whichever is greater; and (ii) that the term of insurance<\/span> shall continue for a period not to exceed three months if the actual interest rate<\/span> charge at any time exceeds the original contract<\/span> interest rate<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Each individual policy or group certificate of credit insurance<\/span> issued in connection with credit transactions<\/span> involving variable interest rates<\/span><\/span> shall provide that in the event of termination of the insurance<\/span> prior to the original scheduled maturity date of the indebtedness<\/span>, a refund of any amount paid by the debtor<\/span> for such insurance<\/span> shall be made in accordance with § 38.2-3729<\/a>. Such refund shall be based on the terms of the original loan and the actual elapsed time.\n\t\t\tFor a loan with a term of more than sixty-one months, computation of such refund using the actuarial method shall be deemed to comply with the requirements hereof. For a loan with a term of sixty-one months or less, computation of such refund using the Rule of 78 shall be deemed to comply with the requirement hereof. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVARIABLE INTEREST RATE INDEBTEDNESS; AMOUNT; DISCLOSURE; REFUNDS (\u00a7 38.2-3722)\n\nA. Notwithstanding the terms of § 38.2-3720, if the credit transaction\nprovides for a variable interest rate and the insurance premiums are calculated\nand charged on a single premium basis, the initial amount of insurance coverage\nshall not exceed the scheduled amounts of unpaid indebtedness based upon the\ninitial contract interest rate; and the death benefit shall be equal to the\nscheduled amount of insurance at the date of death or the amount required to\nliquidate the indebtedness in accordance with the terms of the contract of\nindebtedness, whichever is greater. If the actual interest rate charged at any\ntime exceeds the original contract interest rate, the term of the insurance\nshall continue without additional charge for a period not to exceed three\nmonths. No additional premiums shall be charged for any additional coverage\nprovided beyond that included in the single premium charge.\n\nB. Each individual policy or group certificate of credit insurance issued in\nconnection with credit transactions involving variable interest rates shall\ninclude a disclosure (i) that the death benefit shall in no case be less than\nthe insured scheduled amount of coverage or the amount required to liquidate the\ninsured indebtedness in accordance with the terms of the contract of\nindebtedness, whichever is greater; and (ii) that the term of insurance shall\ncontinue for a period not to exceed three months if the actual interest rate\ncharge at any time exceeds the original contract interest rate.\n\nC. Each individual policy or group certificate of credit insurance issued in\nconnection with credit transactions involving variable interest rates shall\nprovide that in the event of termination of the insurance prior to the original\nscheduled maturity date of the indebtedness, a refund of any amount paid by the\ndebtor for such insurance shall be made in accordance with § 38.2-3729.\nSuch refund shall be based on the terms of the original loan and the actual\nelapsed time.\n\t\t\tFor a loan with a term of more than sixty-one months, computation of such\nrefund using the actuarial method shall be deemed to comply with the\nrequirements hereof. For a loan with a term of sixty-one months or less,\ncomputation of such refund using the Rule of 78 shall be deemed to comply with\nthe requirement hereof.\n\nHISTORY: 1984, c. 664, \u00a7 38.1-482.4:2; 1985, c. 234, \u00a7 38.2-3705; 1986, c.\n562; 1992, c. 586.","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}}