                                 CODE OF VIRGINIA

OTHER PROVISIONS (§ 38.2-3504)

Except as provided in § 38.2-3505, no individual accident and sickness
insurance policy delivered or issued for delivery in this Commonwealth shall
contain provisions respecting the matters set forth below unless such provisions
use the same words which appear in this section. Provisions 1 through 7, 8 a,
and 9 through 11 shall apply to all such policies that are issued for delivery
or delivered in this Commonwealth prior to January 1, 2001. Provisions 1 through
7, 8 b, and 9 through 11 shall apply to all such policies that are issued for
delivery, delivered, renewed, or extended in this Commonwealth on or after
January 1, 2001. The insurer may use a corresponding provision of different
wording approved by the Commission that is not less favorable in any respect to
the Insured or the beneficiary. Any such provision shall be preceded
individually by the appropriate caption OTHER PROVISIONS or by such appropriate
individual or group captions or subcaptions as the Commission may approve.

1. Provision 1:
			CHANGE OF OCCUPATION: If the Insured is injured or contracts sickness after
having changed his occupation to one classified by the Company as more hazardous
than that stated in this policy or while doing for compensation anything
pertaining to an occupation so classified, the Company will pay only the portion
of the indemnities provided in this policy as the premium paid would have
purchased at the rates and within the limits fixed by the Company for the more
hazardous occupation. If the Insured changes his occupation to one classified by
the Company as less hazardous than that stated in this policy, the Company, upon
receipt of proof of the change of occupation, will reduce the premium rate
accordingly and will return the excess pro rata unearned premium from the date
of change of occupation or from the policy anniversary date immediately
preceding receipt of such proof, whichever is more recent. In applying this
provision, the classification of occupational risk and the premium rates shall
be such as have been last filed by the Company prior to the occurrence of the
loss for which the Company is liable or prior to the date of proof of change in
occupation with the state insurance supervisory official in the state where the
Insured resided at the time this policy was issued; but if the filing was not
required, then the classification of occupational risk and the premium rates
shall be those last made effective by the Company in the state prior to the
occurrence of the loss or prior to the date of proof of change in occupation.

2. Provision 2:
			MISSTATEMENT OF AGE: If the Insured&#8217;s age has been misstated, the
benefits will be those the premium paid would have purchased at the correct age.

3. Provision 3:
			OTHER INSURANCE IN THIS COMPANY: If an accident or sickness or accident and
sickness policy or policies previously issued by the Company to the Insured is
in force concurrently herewith, making the aggregate indemnity for
____________________ (insert type of coverage or coverages) in excess of
$_________ (insert maximum limit of indemnity or indemnities) the excess
insurance shall be void and all premiums paid for such excess shall be returned
to the Insured or to his estate.
			Instead of Provision 3, the following provision may be used:
			Insurance effective at any one time on the Insured under a like policy or
policies in this Company is limited to the one such policy elected by the
Insured, his beneficiary or his estate, as the case may be, and the Company will
return all premiums paid for all other such policies.

4. Provision 4:
			INSURANCE WITH OTHER COMPANIES: If there is other valid coverage, not with
this Company, providing benefits for the same loss on a provision of service
basis or on an expense incurred basis and of which this Company has not been
given written notice prior to the occurrence or commencement of loss, the only
liability under any expense incurred coverage of this policy shall be for such
proportion of the loss as the amount which would otherwise have been payable
under this policy plus the total of the like amounts under all such other valid
coverages for the same loss of which this Company had notice bears to the total
like amounts under all valid coverages for such loss, and for the return of such
portion of the premiums paid as shall exceed the pro rata portion for the amount
so determined. For the purpose of applying this provision when other coverage is
on a provision of service basis, the &#8220;like amount&#8221; of such other
coverage shall be taken as the amount which the services rendered would have
cost in the absence of such coverage.
			If Provision 4 is included in a policy that also contains Provision 5, the
phrase &#8220;EXPENSE INCURRED BENEFITS&#8221; shall be added to the caption of
Provision 4. The insurer may include in this provision a definition of
&#8220;other valid coverage,&#8221; approved by the Commission. The definition
shall be limited in subject matter to coverage provided by organizations subject
to regulation by insurance law or by insurance authorities of this Commonwealth
or any other jurisdiction of the United States or Canada, and by hospital or
medical service organizations, and to any other coverage the inclusion of which
may be approved by the Commission. In the absence of such definition the term
shall not include group insurance, automobile medical payments insurance, or
coverage provided by hospital or medical service organizations, by union welfare
plans, or employer or employee benefit organizations.
			For the purpose of applying Provision 4, any amount of benefit provided for
such insured pursuant to any compulsory benefit statute, including any
workers&#8217; compensation or employer&#8217;s liability statute, whether
provided by a governmental agency or otherwise, shall in all cases be deemed to
be &#8220;other valid coverage&#8221; of which the company has had notice. In
applying Provision 4 no third party liability coverage shall be included as
&#8220;other valid coverage.&#8221;

5. Provision 5:
			INSURANCE WITH OTHER COMPANIES: If there is other valid coverage, not with
this Company, providing benefits for the same loss on other than an expense
incurred basis and of which this Company has not been given written notice prior
to the occurrence or commencement of loss, the only liability for such benefits
under this policy shall be for such proportion of the indemnities otherwise
provided under this policy for such loss as the like indemnities of which the
Company had notice, including the indemnities under this policy, bear to the
total amount of all like indemnities for such loss, and for the return of such
portion of the premium paid as shall exceed the pro rata portion for the
indemnities thus determined.
			If Provision 5 is included in a policy that also contains Provision 4, the
phrase &#8220;OTHER BENEFITS&#8221; shall be added to the caption of Provision
5. The insurer may include in this provision a definition of &#8220;other valid
coverage,&#8221; approved by the Commission. The definition shall be limited in
subject matter to coverage provided by organizations subject to regulation by
insurance law or by insurance authorities of this Commonwealth or any other
jurisdiction of the United States or Canada, and to any other coverage approved
by the Commission. In the absence of such definition the term shall not include
group insurance, or benefits provided by union welfare plans or by employer or
employee benefit organizations. For the purpose of applying Provision 5, any
amount of benefit provided for the insured pursuant to any compulsory benefit
statute, including any workers&#8217; compensation or employer&#8217;s liability
statute, whether provided by a governmental agency or otherwise, shall in all
cases be deemed to be &#8220;other valid coverage&#8221; of which the Company
has had notice. In applying Provision 5 no third party liability coverage shall
be included as &#8220;other valid coverage.&#8221;

6. Provision 6:
			RELATION OF EARNINGS TO INSURANCE: If the total monthly amount of loss of
time benefits promised for the same loss under all valid loss of time coverage
upon the Insured, whether payable on a weekly or monthly basis, shall exceed the
monthly earnings of the Insured at the time disability commenced or his average
monthly earnings for the period of two years immediately preceding a disability
for which a claim is made, whichever is greater, the Company will be liable only
for the proportionate amount of the benefits under this policy as the amount of
the monthly earnings or the average monthly earnings of the Insured bears to the
total amount of monthly benefits for the same loss under all the coverage upon
the insured at the time the disability commences and for the return of the part
of the premiums paid during such two years that exceeds the pro rata amount of
the premiums for the benefits actually paid hereunder; but this shall not
operate to reduce the total monthly amount of benefits payable under all the
coverage upon the Insured below the sum of $200 or the sum of the monthly
benefits specified in the coverages, whichever is less, nor shall it operate to
reduce benefits other than those payable for loss of time.
			Provision 6 may be inserted only in a policy that the insured has the right
to continue in force subject to its terms by the timely payment of premiums (i)
until at least age 50 or (ii) for a policy issued after age 44, for at least
five years from its date of issue. The insurer may include in this provision a
definition of &#8220;valid loss of time coverage&#8221; approved by the
Commission. The definition shall be limited in subject matter to coverage
provided by governmental agencies or by organizations subject to regulation by
insurance law or by insurance authorities of this Commonwealth or any other
jurisdiction of the United States or Canada, or to any other coverage the
inclusion of which may be approved by the Commission or any combination of
coverages. In the absence of such definition the term shall not include any
coverage provided for the Insured pursuant to any compulsory benefit statute,
including any workers&#8217; compensation or employer&#8217;s liability statute,
or benefits provided by union welfare plans or by employer or employee benefit
organizations.

7. Provision 7:
			UNPAID PREMIUM: When a claim is paid, any premium due and unpaid may be
deducted from the claim payment.

8. Provision 8 a:
			CANCELLATION BY COMPANY: The Company may cancel this policy at any time by
written notice delivered to the Insured, or mailed to his last address as shown
by the records of the Company, stating when, no less than __________ days
thereafter, the cancellation shall be effective; and after the policy has been
continued beyond its original term the Insured may cancel this policy at any
time by written notice delivered or mailed to the Company effective upon receipt
or on such later date as may be specified in the notice. In the event of
cancellation, the Company will return promptly the unearned portion of any
premium paid. If the Insured cancels, the earned premium shall be computed by
the use of the short-rate table last filed with the state insurance supervisory
official in the state where the Insured resided when the policy was issued. If
the Company cancels, the earned premium shall be computed pro rata. Cancellation
shall be without prejudice to any claim originating prior to the effective date
of cancellation.
			Provision 8 b:
			CANCELLATION BY COMPANY: The Company may cancel this policy at any time by
written notice delivered to the Insured, or mailed to his last address as shown
by the records of the Company, stating when, no less than days thereafter, the
cancellation shall be effective. In the event of cancellation, the Company will
return promptly the unearned portion of any premium paid. The earned premium
shall be computed pro rata. Cancellation shall be without prejudice to any claim
originating prior to the effective date of cancellation.
			In Provisions 8 a and 8 b, a number no less than &#8220;7&#8243; for weekly
premium policies, &#8220;10&#8243; for monthly premium policies and
&#8220;31&#8243; for all other policies shall be inserted between the words
&#8220;than&#8221; and &#8220;days.&#8221;

9. Provision 9:
			CONFORMITY WITH STATE STATUTES: Any provision of this policy that on its
effective date is in conflict with the laws of the state in which the Insured
resides on that date is hereby amended to conform to the minimum requirements of
the laws.

10. Provision 10:
			ILLEGAL OCCUPATION: The Company will not be liable for any loss that results
from the Insured&#8217;s committing or attempting to commit a felony or from the
Insured&#8217;s engaging in an illegal occupation.

11. Provision 11:
			INTOXICANTS AND NARCOTICS: The Company will not be liable for any loss
resulting from the Insured&#8217;s being drunk, or under the influence of any
narcotic unless taken on the advice of a physician.

HISTORY: 1952, c. 317, § 38.1-350; 1986, c. 562; 2000, c. 540; 2003, c. 377.