{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3724.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3724.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3724.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3724.html"}],"law_id":72023,"edition_id":1,"section_id":72023,"structure_id":15016,"section_number":"38.2-3724","catch_line":"Policy provisions; disclosure to debtors; delivery of policy or certificate","history":"1960, c. 67, \u00a7 38.1-482.6; 1982, c. 223, \u00a7\u00a7 38.2-3707, 38.2-3709; 1986, c. 562; 1988, c. 551; 1992, c. 586; 2009, c. 643; 2010, c. 211.","full_text":"A\n\nCredit life insurance and credit accident and sickness insurance shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance. The policy or certificate of insurance shall: (i) be a document separate and apart from the loan or credit agreement, (ii) refer exclusively to the insurance coverage, and (iii) be delivered to the debtor.B\n\nEach policy or certificate of credit life insurance or credit accident and sickness insurance shall set forth:1\n\nThe name and address of the insurer;2\n\nThe name or names of the debtor or, in the case of a certificate, the identity by name or otherwise of the debtor;3\n\nThe age or date of birth of the debtor(s);4\n\nThe premium or amount payable by the debtor separately for credit life insurance and credit accident and sickness insurance;5\n\nA description of the coverage including the amount and term of the coverage, and any exceptions, limitations or restrictions;6\n\nA statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid indebtedness; and7\n\nA statement that if the amount of insurance exceeds the amount necessary to discharge the indebtedness, any such excess shall be payable to a beneficiary, other than the creditor, named by the debtor or to his estate.C\n\nA credit life or credit accident and sickness insurance policy or certificate, which provides truncated or critical period coverage or any other type of similar coverage that does not provide benefits or coverage for the entire term or amount of the indebtedness, shall be subject to the following requirements:1\n\nThe credit life or credit accident and sickness insurance policy or certificate shall include a statement printed on the face of the policy or first page of the certificate which clearly describes the limited nature of the insurance. The statement shall be printed in capital letters and in bold twelve-point or larger type; and2\n\nThe credit life or credit accident and sickness insurance policy or certificate shall not include any benefits or coverage other than truncated or critical period coverage or any other type of similar coverage that does not provide benefits or coverage for the entire term or amount of the indebtedness.D\n\nNo individual or group credit life insurance or credit accident and sickness insurance policy shall be delivered or issued for delivery in this Commonwealth unless the policy complies with the following requirements:1\n\nEach policy shall contain a provision (i) that the policy, or the policy and any application endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties, and (ii) that all statements made by the creditor or by the individual debtors shall, in the absence of fraud, be deemed representations and not warranties;2\n\nEach policy shall contain a provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two years from its date of issue; and that no statement made by any person insured under the policy relating to his insurability shall be used in contesting the validity of the insurance with respect to which such statement was made after the insurance has been in force for a period of two years during such person’s lifetime, and prior to the date on which the claim thereunder arose;3\n\nEach policy shall contain a provision that when a claim for the death or disability of the insured arises, settlement shall be made upon receipt of due proof of such death or disability;4\n\nOn the face of each policy and certificate there shall be a title that briefly and accurately describes the nature and form of the policy;5\n\nEach policy and certificate, including any rider or endorsement, shall be identified by a form number in the lower lefthand corner of the first page of the form. The type size of the text of the policy form or certificate, including any rider and endorsement, shall not be less than ten-point type, one-point leaded;6\n\nEach individual policy or group certificate shall meet the readability standards established by the Commission;7\n\nEach individual policy and certificate shall have printed on it a notice stating in substance that if, during a period of at least ten days from the date the policy or certificate is delivered to the policyowner or certificateholder the policy or certificate is surrendered to the insurer or its agent with a written request for cancellation, the policy or certificate shall be void from the beginning and the insurer shall refund any premium paid for the policy or certificate; and8\n\nEach individual policy or group certificate paid in advance or by a single premium shall include a provision, separately and prominently captioned, stating in substance the following:\n\t\t\t\t“REFUND OF PREMIUM IN THE EVENT OF EARLY TERMINATION”\n\t\t\t\t“In the event this insurance policy or certificate is terminated prior to its originally scheduled maturity date, or the insured indebtedness is terminated or paid off earlier than scheduled, the insurer shall, within 30 days of receipt of notification from the debtor of such termination or early payoff, refund or credit any amount paid by the debtor for the insurance beyond the actual date of termination or payoff. Early termination of debt includes termination by renewal or refinancing. The debtor’s notification to the insurer shall include proof of termination or early payoff of the insured indebtedness.”E\n\nAn individual credit life insurance or credit accident and sickness insurance policy or certificate of insurance shall be delivered or mailed to the insured debtor at the time the indebtedness is incurred or within ten business days thereafter except as provided in subsection F of this section. For open-end credit transactions, agricultural or educational loan commitments, or where no direct charge is made to the debtor for his insurance, the individual policy or group certificate of insurance may be delivered to the insured debtor at the time he first becomes eligible for the insurance and need not be delivered again each time new indebtedness is added.F\n\nIf the individual policy or certificate of insurance is not delivered or mailed to the debtor at the time indebtedness is incurred, or within ten business days thereafter, a notice of proposed insurance, setting forth (i) the name and address of the insurer, (ii) the name or names of the debtor, (iii) the age of the debtor, (iv) the premium or amount of payment by the debtor, if any, separately for credit life insurance and credit accident and sickness insurance, and (v) the amount, term and a brief description of the coverage provided, shall be delivered to the debtor. The notice of proposed insurance shall refer exclusively to insurance coverage and shall be separate and apart from the loan or credit transaction. Upon acceptance of the insurance by the insurer and within thirty days of the date upon which the indebtedness is incurred, the insurer shall deliver or mail the individual policy or group certificate of insurance to the debtor. The notice of proposed insurance shall state that upon acceptance by the insurer, the insurance shall become effective as provided in § 38.2-3721.G\n\nIf the policy or certificate is issued by any insurer other than the insurer listed on the application, enrollment request, or notice of proposed insurance, the debtor shall receive a policy or certificate of insurance setting forth the name and address of the substituted insurer and the amount of the premium to be charged. If the amount of the premium is less than that set forth in the notice of proposed insurance, an appropriate refund shall be made.","order_by":null,"text":{"0":{"id":259505,"text":"Credit life insurance and credit accident and sickness insurance shall be evidenced by an individual policy, or in the case of group insurance by a certificate of insurance. The policy or certificate of insurance shall: (i) be a document separate and apart from the loan or credit agreement, (ii) refer exclusively to the insurance coverage, and (iii) be delivered to the debtor.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":259506,"text":"Each policy or certificate of credit life insurance or credit accident and sickness insurance shall set forth:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":259507,"text":"The name and address of the insurer;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":259508,"text":"The name or names of the debtor or, in the case of a certificate, the identity by name or otherwise of the debtor;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":259509,"text":"The age or date of birth of the debtor(s);","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":259510,"text":"The premium or amount payable by the debtor separately for credit life insurance and credit accident and sickness insurance;","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":259511,"text":"A description of the coverage including the amount and term of the coverage, and any exceptions, limitations or restrictions;","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"B6"},"7":{"id":259512,"text":"A statement that the benefits shall be paid to the creditor to reduce or extinguish the unpaid indebtedness; and","type":"section","prefixes":["B","6"],"prefix":"6","entire_prefix":"B6","prefix_anchor":"B6","level":2,"prior_prefix":"B5","next_prefix":"B7"},"8":{"id":259513,"text":"A statement that if the amount of insurance exceeds the amount necessary to discharge the indebtedness, any such excess shall be payable to a beneficiary, other than the creditor, named by the debtor or to his estate.","type":"section","prefixes":["B","7"],"prefix":"7","entire_prefix":"B7","prefix_anchor":"B7","level":2,"prior_prefix":"B6","next_prefix":"C"},"9":{"id":259514,"text":"A credit life or credit accident and sickness insurance policy or certificate, which provides truncated or critical period coverage or any other type of similar coverage that does not provide benefits or coverage for the entire term or amount of the indebtedness, shall be subject to the following requirements:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B7","next_prefix":"C1"},"10":{"id":259515,"text":"The credit life or credit accident and sickness insurance policy or certificate shall include a statement printed on the face of the policy or first page of the certificate which clearly describes the limited nature of the insurance. The statement shall be printed in capital letters and in bold twelve-point or larger type; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"11":{"id":259516,"text":"The credit life or credit accident and sickness insurance policy or certificate shall not include any benefits or coverage other than truncated or critical period coverage or any other type of similar coverage that does not provide benefits or coverage for the entire term or amount of the indebtedness.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"12":{"id":259517,"text":"No individual or group credit life insurance or credit accident and sickness insurance policy shall be delivered or issued for delivery in this Commonwealth unless the policy complies with the following requirements:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"D1"},"13":{"id":259518,"text":"Each policy shall contain a provision (i) that the policy, or the policy and any application endorsed upon or attached to the policy when issued, shall constitute the entire contract between the parties, and (ii) that all statements made by the creditor or by the individual debtors shall, in the absence of fraud, be deemed representations and not warranties;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"14":{"id":259519,"text":"Each policy shall contain a provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two years from its date of issue; and that no statement made by any person insured under the policy relating to his insurability shall be used in contesting the validity of the insurance with respect to which such statement was made after the insurance has been in force for a period of two years during such person’s lifetime, and prior to the date on which the claim thereunder arose;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"15":{"id":259520,"text":"Each policy shall contain a provision that when a claim for the death or disability of the insured arises, settlement shall be made upon receipt of due proof of such death or disability;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"16":{"id":259521,"text":"On the face of each policy and certificate there shall be a title that briefly and accurately describes the nature and form of the policy;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"17":{"id":259522,"text":"Each policy and certificate, including any rider or endorsement, shall be identified by a form number in the lower lefthand corner of the first page of the form. The type size of the text of the policy form or certificate, including any rider and endorsement, shall not be less than ten-point type, one-point leaded;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"18":{"id":259523,"text":"Each individual policy or group certificate shall meet the readability standards established by the Commission;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"19":{"id":259524,"text":"Each individual policy and certificate shall have printed on it a notice stating in substance that if, during a period of at least ten days from the date the policy or certificate is delivered to the policyowner or certificateholder the policy or certificate is surrendered to the insurer or its agent with a written request for cancellation, the policy or certificate shall be void from the beginning and the insurer shall refund any premium paid for the policy or certificate; and","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"20":{"id":259525,"text":"Each individual policy or group certificate paid in advance or by a single premium shall include a provision, separately and prominently captioned, stating in substance the following:\n\t\t\t\t“REFUND OF PREMIUM IN THE EVENT OF EARLY TERMINATION”\n\t\t\t\t“In the event this insurance policy or certificate is terminated prior to its originally scheduled maturity date, or the insured indebtedness is terminated or paid off earlier than scheduled, the insurer shall, within 30 days of receipt of notification from the debtor of such termination or early payoff, refund or credit any amount paid by the debtor for the insurance beyond the actual date of termination or payoff. Early termination of debt includes termination by renewal or refinancing. The debtor’s notification to the insurer shall include proof of termination or early payoff of the insured indebtedness.”","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"E"},"21":{"id":259526,"text":"An individual credit life insurance or credit accident and sickness insurance policy or certificate of insurance shall be delivered or mailed to the insured debtor at the time the indebtedness is incurred or within ten business days thereafter except as provided in subsection F of this section. For open-end credit transactions, agricultural or educational loan commitments, or where no direct charge is made to the debtor for his insurance, the individual policy or group certificate of insurance may be delivered to the insured debtor at the time he first becomes eligible for the insurance and need not be delivered again each time new indebtedness is added.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D8","next_prefix":"F"},"22":{"id":259527,"text":"If the individual policy or certificate of insurance is not delivered or mailed to the debtor at the time indebtedness is incurred, or within ten business days thereafter, a notice of proposed insurance, setting forth (i) the name and address of the insurer, (ii) the name or names of the debtor, (iii) the age of the debtor, (iv) the premium or amount of payment by the debtor, if any, separately for credit life insurance and credit accident and sickness insurance, and (v) the amount, term and a brief description of the coverage provided, shall be delivered to the debtor. The notice of proposed insurance shall refer exclusively to insurance coverage and shall be separate and apart from the loan or credit transaction. Upon acceptance of the insurance by the insurer and within thirty days of the date upon which the indebtedness is incurred, the insurer shall deliver or mail the individual policy or group certificate of insurance to the debtor. The notice of proposed insurance shall state that upon acceptance by the insurer, the insurance shall become effective as provided in § 38.2-3721.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"23":{"id":259528,"text":"If the policy or certificate is issued by any insurer other than the insurer listed on the application, enrollment request, or notice of proposed insurance, the debtor shall receive a policy or certificate of insurance setting forth the name and address of the substituted insurer and the amount of the premium to be charged. If the amount of the premium is less than that set forth in the notice of proposed insurance, an appropriate refund shall be made.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3724\/","history_text":"

This law was first created in 1960. The record of its establishment is cataloged in chapter 67 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 1960 \u201cActs\u201d aren\u2019t available online. It has been modified 6 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1982, chapter 223; in 1986, chapter 562; in 1988, chapter 551; in 1992, chapter 586; in 2009, chapter 643<\/a>; in 2010, chapter 211<\/a>.<\/p>","references":[{"id":79475,"section_number":"38.2-3725","catch_line":"Policy forms to be filed with Commission; approval or disapproval by Commission","order_by":null,"url":"\/38.2-3725\/"},{"id":57264,"section_number":"38.2-3735","catch_line":"Disclosure and readability","order_by":null,"url":"\/38.2-3735\/"},{"id":69488,"section_number":"38.2-3737","catch_line":"Application","order_by":null,"url":"\/38.2-3737\/"}],"refers_to":false,"permalink":{"id":216089,"object_type":"law","relational_id":72023,"identifier":"38.2-3724","token":"38.2\/37.1\/38.2-3724","url":"\/38.2-3724\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3724\/","token":"38.2\/37.1\/38.2-3724","dublin_core":{"Title":"Policy provisions; disclosure to debtors; delivery of policy or certificate","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3724","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Credit life insurance<\/span> and credit accident and sickness insurance<\/span> shall be evidenced by an individual policy, or in the case of group insurance<\/span> by a certificate of insurance<\/span>. The policy or certificate of insurance<\/span> shall: (i) be a document separate and apart from the loan or credit agreement, (ii) refer exclusively to the insurance<\/span> coverage, and (iii) be delivered to the debtor<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Each policy or certificate of credit life insurance<\/span> or credit accident and sickness insurance<\/span> shall set forth: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The name and address of the insurer<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The name or names of the debtor<\/span> or, in the case of a certificate, the identity by name or otherwise of the debtor<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The age or date of birth of the debtor<\/span>(s); <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The premium or amount payable by the debtor<\/span> separately for credit life insurance<\/span> and credit accident and sickness insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A description of the coverage including the amount and term of the coverage, and any exceptions, limitations or restrictions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A statement that the benefits shall be paid to the creditor<\/span> to reduce or extinguish the unpaid indebtedness<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> A statement that if the amount of insurance<\/span> exceeds the amount necessary to discharge the indebtedness<\/span>, any such excess shall be payable to a beneficiary, other than the creditor<\/span>, named by the debtor<\/span> or to his estate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A credit life or credit accident and sickness insurance<\/span> policy or certificate, which provides truncated or critical period coverage<\/span> or any other type of similar coverage that does not provide benefits or coverage for the entire term or amount of the indebtedness<\/span>, shall be subject to the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The credit life or credit accident and sickness insurance<\/span> policy or certificate shall include a statement printed on the face of the policy or first page of the certificate which clearly describes the limited nature of the insurance<\/span>. The statement shall be printed in capital letters and in bold twelve-point or larger type; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The credit life or credit accident and sickness insurance<\/span> policy or certificate shall not include any benefits or coverage other than truncated or critical period coverage<\/span> or any other type of similar coverage that does not provide benefits or coverage for the entire term or amount of the indebtedness<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No individual or group credit life insurance<\/span> or credit accident and sickness insurance<\/span> policy shall be delivered or issued for delivery in this Commonwealth unless the policy complies with the following requirements: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Each policy shall contain a provision (i) that the policy, or the policy and any application endorsed upon or attached to the policy when issued, shall constitute the entire contract<\/span> between the parties, and (ii) that all statements made by the creditor<\/span> or by the individual debtors<\/span> shall, in the absence of fraud<\/span>, be deemed representations and not warranties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Each policy shall contain a provision that the validity of the policy shall not be contested, except for nonpayment of premiums, after it has been in force for two years from its date of issue<\/span>; and that no statement made by any person<\/span> insured under the policy relating to his insurability shall be used in contesting the validity of the insurance<\/span> with respect to which such statement was made after the insurance<\/span> has been in force for a period of two years during such person<\/span>’s lifetime, and prior to the date on which the claim thereunder arose; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Each policy shall contain a provision that when a claim for the death or disability of the insured arises, settlement<\/span> shall be made upon receipt of due proof of such death or disability; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> On the face of each policy and certificate there shall be a title that briefly and accurately describes the nature and form<\/span> of the policy; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Each policy and certificate, including any rider or endorsement, shall be identified by a form<\/span> number in the lower lefthand corner of the first page of the form<\/span>. The type size of the text of the policy form<\/span> or certificate, including any rider and endorsement, shall not be less than ten-point type, one-point leaded; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Each individual policy or group certificate shall meet the readability standards established by the Commission<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Each individual policy and certificate shall have printed on it a notice stating in substance that if, during a period of at least ten days from the date the policy or certificate is delivered to the policyowner or certificateholder the policy or certificate is surrendered to the insurer<\/span> or its agent with a written request for cancellation, the policy or certificate shall be void from the beginning and the insurer<\/span> shall refund any premium paid for the policy or certificate; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Each individual policy or group certificate paid in advance or by a single premium shall include a provision, separately and prominently captioned, stating in substance the following:\n\t\t\t\t“REFUND OF PREMIUM IN THE EVENT OF EARLY TERMINATION”\n\t\t\t\t“In the event this insurance<\/span> policy or certificate is terminated prior to its originally scheduled maturity date, or the insured indebtedness<\/span> is terminated or paid off earlier than scheduled, the insurer<\/span> shall, within 30 days of receipt of notification from the debtor<\/span> of such termination or early payoff, refund or credit any amount paid by the debtor<\/span> for the insurance<\/span> beyond the actual date of termination or payoff. Early termination of debt includes termination by renewal or refinancing. The debtor<\/span>’s notification to the insurer<\/span> shall include proof of termination or early payoff of the insured indebtedness<\/span>.” <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> An individual credit life insurance<\/span> or credit accident and sickness insurance<\/span> policy or certificate of insurance<\/span> shall be delivered or mailed to the insured debtor<\/span> at the time the indebtedness<\/span> is incurred or within ten business days thereafter except as provided in subsection F of this section. For open-end credit transactions<\/span>, agricultural or educational loan commitments, or where no direct charge is made to the debtor<\/span> for his insurance<\/span>, the individual policy or group certificate of insurance<\/span> may be delivered to the insured debtor<\/span> at the time he first becomes eligible for the insurance<\/span> and need not be delivered again each time new indebtedness<\/span> is added. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> If the individual policy or certificate of insurance<\/span> is not delivered or mailed to the debtor<\/span> at the time indebtedness<\/span> is incurred, or within ten business days thereafter, a notice of proposed insurance<\/span>, setting forth (i) the name and address of the insurer<\/span>, (ii) the name or names of the debtor<\/span>, (iii) the age of the debtor<\/span>, (iv) the premium or amount of payment by the debtor<\/span>, if any, separately for credit life insurance<\/span> and credit accident and sickness insurance<\/span>, and (v) the amount, term and a brief<\/span> description of the coverage provided, shall be delivered to the debtor<\/span>. The notice of proposed insurance<\/span> shall refer exclusively to insurance<\/span> coverage and shall be separate and apart from the loan or credit transaction<\/span>. Upon acceptance of the insurance<\/span> by the insurer<\/span> and within thirty days of the date upon which the indebtedness<\/span> is incurred, the insurer<\/span> shall deliver or mail the individual policy or group certificate of insurance<\/span> to the debtor<\/span>. The notice of proposed insurance<\/span> shall state<\/span> that upon acceptance by the insurer<\/span>, the insurance<\/span> shall become effective as provided in § 38.2-3721<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> If the policy or certificate is issued by any insurer<\/span> other than the insurer<\/span> listed on the application, enrollment request, or notice of proposed insurance<\/span>, the debtor<\/span> shall receive a policy or certificate of insurance<\/span> setting forth the name and address of the substituted insurer<\/span> and the amount of the premium to be charged. If the amount of the premium is less than that set forth in the notice of proposed insurance<\/span>, an appropriate refund shall be made. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPOLICY PROVISIONS; DISCLOSURE TO DEBTORS; DELIVERY OF POLICY OR CERTIFICATE (\u00a7\n38.2-3724)\n\nA. Credit life insurance and credit accident and sickness insurance shall be\nevidenced by an individual policy, or in the case of group insurance by a\ncertificate of insurance. The policy or certificate of insurance shall: (i) be a\ndocument separate and apart from the loan or credit agreement, (ii) refer\nexclusively to the insurance coverage, and (iii) be delivered to the debtor.\n\nB. Each policy or certificate of credit life insurance or credit accident and\nsickness insurance shall set forth:\n\n 1. The name and address of the insurer;\n\n 2. The name or names of the debtor or, in the case of a certificate, the\n identity by name or otherwise of the debtor;\n\n 3. The age or date of birth of the debtor(s);\n\n 4. The premium or amount payable by the debtor separately for credit life\n insurance and credit accident and sickness insurance;\n\n 5. A description of the coverage including the amount and term of the\n coverage, and any exceptions, limitations or restrictions;\n\n 6. A statement that the benefits shall be paid to the creditor to reduce or\n extinguish the unpaid indebtedness; and\n\n 7. A statement that if the amount of insurance exceeds the amount necessary to\n discharge the indebtedness, any such excess shall be payable to a beneficiary,\n other than the creditor, named by the debtor or to his estate.\n\nC. A credit life or credit accident and sickness insurance policy or\ncertificate, which provides truncated or critical period coverage or any other\ntype of similar coverage that does not provide benefits or coverage for the\nentire term or amount of the indebtedness, shall be subject to the following\nrequirements:\n\n 1. The credit life or credit accident and sickness insurance policy or\n certificate shall include a statement printed on the face of the policy or\n first page of the certificate which clearly describes the limited nature of\n the insurance. The statement shall be printed in capital letters and in bold\n twelve-point or larger type; and\n\n 2. The credit life or credit accident and sickness insurance policy or\n certificate shall not include any benefits or coverage other than truncated or\n critical period coverage or any other type of similar coverage that does not\n provide benefits or coverage for the entire term or amount of the\n indebtedness.\n\nD. No individual or group credit life insurance or credit accident and sickness\ninsurance policy shall be delivered or issued for delivery in this Commonwealth\nunless the policy complies with the following requirements:\n\n 1. Each policy shall contain a provision (i) that the policy, or the policy\n and any application endorsed upon or attached to the policy when issued, shall\n constitute the entire contract between the parties, and (ii) that all\n statements made by the creditor or by the individual debtors shall, in the\n absence of fraud, be deemed representations and not warranties;\n\n 2. Each policy shall contain a provision that the validity of the policy shall\n not be contested, except for nonpayment of premiums, after it has been in\n force for two years from its date of issue; and that no statement made by any\n person insured under the policy relating to his insurability shall be used in\n contesting the validity of the insurance with respect to which such statement\n was made after the insurance has been in force for a period of two years\n during such person’s lifetime, and prior to the date on which the claim\n thereunder arose;\n\n 3. Each policy shall contain a provision that when a claim for the death or\n disability of the insured arises, settlement shall be made upon receipt of due\n proof of such death or disability;\n\n 4. On the face of each policy and certificate there shall be a title that\n briefly and accurately describes the nature and form of the policy;\n\n 5. Each policy and certificate, including any rider or endorsement, shall be\n identified by a form number in the lower lefthand corner of the first page of\n the form. The type size of the text of the policy form or certificate,\n including any rider and endorsement, shall not be less than ten-point type,\n one-point leaded;\n\n 6. Each individual policy or group certificate shall meet the readability\n standards established by the Commission;\n\n 7. Each individual policy and certificate shall have printed on it a notice\n stating in substance that if, during a period of at least ten days from the\n date the policy or certificate is delivered to the policyowner or\n certificateholder the policy or certificate is surrendered to the insurer or\n its agent with a written request for cancellation, the policy or certificate\n shall be void from the beginning and the insurer shall refund any premium paid\n for the policy or certificate; and\n\n 8. Each individual policy or group certificate paid in advance or by a single\n premium shall include a provision, separately and prominently captioned,\n stating in substance the following:\n \t\t\t\t“REFUND OF PREMIUM IN THE EVENT OF EARLY TERMINATION”\n \t\t\t\t“In the event this insurance policy or certificate is terminated\n prior to its originally scheduled maturity date, or the insured indebtedness\n is terminated or paid off earlier than scheduled, the insurer shall, within 30\n days of receipt of notification from the debtor of such termination or early\n payoff, refund or credit any amount paid by the debtor for the insurance\n beyond the actual date of termination or payoff. Early termination of debt\n includes termination by renewal or refinancing. The debtor’s\n notification to the insurer shall include proof of termination or early payoff\n of the insured indebtedness.”\n\nE. An individual credit life insurance or credit accident and sickness insurance\npolicy or certificate of insurance shall be delivered or mailed to the insured\ndebtor at the time the indebtedness is incurred or within ten business days\nthereafter except as provided in subsection F of this section. For open-end\ncredit transactions, agricultural or educational loan commitments, or where no\ndirect charge is made to the debtor for his insurance, the individual policy or\ngroup certificate of insurance may be delivered to the insured debtor at the\ntime he first becomes eligible for the insurance and need not be delivered again\neach time new indebtedness is added.\n\nF. If the individual policy or certificate of insurance is not delivered or\nmailed to the debtor at the time indebtedness is incurred, or within ten\nbusiness days thereafter, a notice of proposed insurance, setting forth (i) the\nname and address of the insurer, (ii) the name or names of the debtor, (iii) the\nage of the debtor, (iv) the premium or amount of payment by the debtor, if any,\nseparately for credit life insurance and credit accident and sickness insurance,\nand (v) the amount, term and a brief description of the coverage provided, shall\nbe delivered to the debtor. The notice of proposed insurance shall refer\nexclusively to insurance coverage and shall be separate and apart from the loan\nor credit transaction. Upon acceptance of the insurance by the insurer and\nwithin thirty days of the date upon which the indebtedness is incurred, the\ninsurer shall deliver or mail the individual policy or group certificate of\ninsurance to the debtor. The notice of proposed insurance shall state that upon\nacceptance by the insurer, the insurance shall become effective as provided in\n§ 38.2-3721.\n\nG. If the policy or certificate is issued by any insurer other than the insurer\nlisted on the application, enrollment request, or notice of proposed insurance,\nthe debtor shall receive a policy or certificate of insurance setting forth the\nname and address of the substituted insurer and the amount of the premium to be\ncharged. If the amount of the premium is less than that set forth in the notice\nof proposed insurance, an appropriate refund shall be made.\n\nHISTORY: 1960, c. 67, \u00a7 38.1-482.6; 1982, c. 223, \u00a7\u00a7 38.2-3707, 38.2-3709;\n1986, c. 562; 1988, c. 551; 1992, c. 586; 2009, c. 643; 2010, c. 211.","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}}