                                 CODE OF VIRGINIA

ACCEPTANCE BY INSURANCE AGENTS OF PREMIUMS IN ARREARS; HOW ADVANCE PREMIUMS
RECORDED (§ 38.2-1805)

A. No agent of a home service insurer shall accept, and no insurer or licensed
agent shall knowingly permit an agent to accept, payment of premiums in arrears
on any policy of life insurance or accident and sickness insurance on which the
premiums are collected at least monthly that has lapsed and that the insured
seeks to reinstate, unless the payment (i) at least equals the total of all
premiums in arrears and (ii) entitles the policyholder to make immediate
application for reinstatement of the policy. As used in this chapter,
&#8220;home service insurer&#8221; means an insurer selling industrial or
ordinary life insurance or accident and sickness insurance on a debit, where the
premiums are payable at least monthly directly by the owner of the policy or a
person representing the owner to a representative of the insurer.

B. Every advance premium paid to an agent on a life insurance policy or accident
and sickness insurance policy on which the premiums are collected at least
monthly shall be recorded in the receipt book of the insured and in the record
book of the agent in exactly the same manner as current premiums are recorded.
However, the failure to do so shall not invalidate the policy.

HISTORY: Code 1950, § 38.1-293; 1952, c. 317; 1979, c. 513, § 38.1-327.6;
1986, c. 562; 1987, c. 521; 1990, c. 464; 2001, c. 706.