                                 CODE OF VIRGINIA

LIABILITY INSURANCE ON MOTOR VEHICLES; STANDARD PROVISIONS; APPLICABILITY OF
OTHER VALID AND COLLECTIBLE INSURANCE (§ 38.2-2205)

A. 1. Each policy or contract of bodily injury or property damage liability
insurance which provides insurance to a named insured in connection with the
business of selling, leasing, repairing, servicing, storing or parking motor
vehicles, against liability arising from the ownership, maintenance, or use of
any motor vehicle incident thereto shall contain a provision that the insurance
coverage applicable to those motor vehicles shall not be applicable to a person
other than the named insured and his employees in the course of their employment
if there is any other valid and collectible insurance applicable to the same
loss covering the other person under a policy with limits at least equal to the
financial responsibility requirements specified in § 46.2-472. Such provision
shall apply to motor vehicles which are either for the purpose of demonstrating
to the other person as a prospective purchaser, or which are loaned or leased to
the other person as a convenience during the repairing or servicing of a motor
vehicle for the other person, or leased to the other person for a period of six
months or more. This provision shall apply whether such repair or service is
performed by the owner of the vehicle being loaned or leased or by some other
person or business.

   2. If the other valid and collectible insurance has limits less than the
   financial responsibility requirements specified in &#xA7; 46.2-472, then the
   coverage afforded a person other than the named insured and his employees in
   the course of their employment shall be applicable to the extent necessary to
   equal the financial responsibility requirements specified in &#xA7; 46.2-472.

   3. If there is no other valid and collectible insurance available, the
   coverage under such policy afforded a person, other than the named insured and
   his employees in the course of their employment, shall be applicable, but the
   amount recoverable in such case shall not exceed the financial responsibility
   requirements specified in &#xA7; 46.2-472. If there is no other valid and
   collectible collision or upset insurance available and if such policy provides
   insurance to the named insured for collision or upset, it shall include any
   such other person as an additional insured, unless in the case of a leased
   vehicle such other person receives a conspicuous written disclosure at the
   commencement of the lease, warning such person that he is not an additional
   insured under the owner&#8217;s policy for collision or upset coverage.

B. 1. Any policy or contract of bodily injury or property damage liability
insurance relating to the ownership, maintenance, or use of a motor vehicle
shall exclude coverage to persons other than (i) the named insured, or (ii)
directors, stockholders, partners, agents, or employees of the named insured, or
(iii) residents of the household of either (i) or (ii), while those persons are
employed or otherwise engaged in the business of selling, repairing, servicing,
storing, or parking motor vehicles if there is any other valid or collectible
insurance applicable to the same loss covering the persons under a policy with
limits at least equal to the financial responsibility requirements specified in
§ 46.2-472.

   2. If the other valid and collectible insurance has limits less than the
   financial responsibility requirements specified in &#xA7; 46.2-472, then the
   coverage afforded a person other than the named insured while that person is
   employed or otherwise engaged in the business of selling, repairing,
   servicing, storing, or parking motor vehicles shall be applicable to the
   extent necessary to equal the financial responsibility requirements specified
   in &#xA7; 46.2-472.

   3. If there is no other valid and collectible insurance available, the
   coverage afforded a person other than the named insured while that person is
   employed or otherwise engaged in the business of selling, repairing,
   servicing, storing, or parking motor vehicles shall apply, but the amount
   recoverable shall not exceed the financial responsibility requirements
   specified in &#xA7; 46.2-472.

HISTORY: Code 1950, § 38-238; 1952, c. 317, § 38.1-381; 1958, c. 282; 1959,
Ex. Sess., cc. 42, 70; 1970, c. 462; 1962, c. 457; 1964, c. 477; 1966, cc. 182,
459; 1968, cc. 199, 721; 1970, c. 494; 1971, Ex. Sess., c. 216; 1973, cc. 225,
390; 1974, c. 87; 1976, cc. 121, 122; 1977, c. 78; 1979, c. 113; 1980, cc. 326,
331; 1981, Sp. Sess., c. 6; 1982, cc. 638, 642; 1984, c. 541; 1985, cc. 39, 325;
1986, c. 562; 1987, c. 685; 1992, c. 474.