                                 CODE OF VIRGINIA

AMOUNT OF CREDIT LIFE INSURANCE AND CREDIT ACCIDENT AND SICKNESS INSURANCE (§
38.2-3720)

A. Credit life insurance. 1. Where an indebtedness is repayable in substantially
equal installments, the amount of credit life insurance shall at no time exceed
the actual amount of unpaid indebtedness.

   2. Notwithstanding the provisions of subdivision A 1, insurance on
   agricultural credit transaction commitments not exceeding one year in duration
   may be written up to the amount of the loan commitment, on a nondecreasing or
   level-term plan.

   3. Notwithstanding the provisions of subdivision A 1 of this subsection, or
   any other subsection, insurance on educational credit transaction commitments
   may be written for the amount of the loan commitment.

B. Credit accident and sickness insurance. &#8212; The total amount of periodic
indemnity payable by credit accident and sickness insurance in the event of
disability, as defined in the policy, shall not exceed the aggregate of the
periodic scheduled unpaid installments of the indebtedness; and the amount of
each periodic indemnity payment shall not exceed the original indebtedness
divided by the number of periodic installments.

C. Maximum aggregate provisions. &#8212; A provision in a credit life insurance
or credit accident and sickness insurance policy or certificate issued
thereunder that sets a maximum limit on total benefits payable thereunder shall
apply only to that specific indebtedness for which such policy or certificate
was issued.

D. The amount of credit life insurance on an indebtedness of any debtor shall
not exceed $70,000 with any one insurance company.

HISTORY: 1960, c. 67, § 38.1-482.4; 1972, c. 527, §§ 38.2-3703, 38.2-3704;
1982, c. 223; 1986, c. 562; 1992, c. 586.