                                 CODE OF VIRGINIA

PAYMENT DISCHARGES INSURER (§ 38.2-321)

A. An insurer shall be fully discharged from all claims under a life insurance
policy, accident and sickness insurance policy, or annuity contract:

   1. When the proceeds of or payments under a policy or contract become payable
   in accordance with (i) the terms of the policy or contract or (ii) the
   exercise of any right or privilege under the contract; and

   2. If the insurer makes payments in accordance with the terms of the policy or
   contract or any written assignment to the person designated in the policy or
   contract or by assignment as being entitled to the proceeds or payments.

B. An insurer may not be fully discharged from all claims under a life insurance
policy, accident and sickness insurance policy, or annuity contract before
payment is made and if the insurer has received, at its home office, written
notice that some other person claims to be entitled to payment or some interest
in the policy or contract.

HISTORY: 1952, c. 317, § 38.1-346.1; 1986, c. 562.