                                 CODE OF VIRGINIA

DISCLOSURES FOR RETAINED ASSET ACCOUNTS TO BENEFICIARIES (§ 38.2-3117.4)

The insurer shall provide the following written disclosures to the beneficiary
of a policy before the retained asset account is selected, if optional, or
established, if not optional:

1. Payment of the full benefit amount is accomplished by delivery of the draft
book or check book;

2. One draft or check may be written to access the entire amount, including
interest, of the retained asset account at any time;

3. Whether other available settlement options are preserved until the entire
balance is withdrawn or the balance drops below the insurer&#8217;s minimum
balance requirements;

4. A statement identifying the account as either a checking account or a draft
account and an explanation of how the account works;

5. Information about the account services provided and contact information where
the beneficiary may request and obtain more details about such services;

6. A description of fees charged, if applicable;

7. The frequency of statements showing the current account balance, the interest
credited, drafts or checks written, and any other account activity;

8. The minimum interest rate to be credited to the account and how the actual
interest rate will be determined;

9. The interest earned on the account may be taxable;

10. Retained asset account funds held by insurance companies are not insured by
the Federal Deposit Insurance Corporation but are guaranteed by the state
guaranty association. The beneficiary should be advised to contact the National
Organization of Life and Health Insurance Guaranty Associations via the
association&#8217;s website to learn more about the coverage limitations to the
account under a state guaranty association; and

11. A description of the insurer&#8217;s policy regarding retained asset
accounts that become inactive.

HISTORY: 2011, cc. 194, 227.