                                 CODE OF VIRGINIA

CLAIMS (§ 38.2-3731)

A. All claims shall be promptly reported to the insurer or its designated claim
representative. The insurer shall maintain adequate claim files. All claims
shall be settled as soon as possible and in accordance with the terms of the
insurance contract.

B. All claims shall be paid or credited by: (i) electronic means to the account
of the claimant to whom payment of the claim is due pursuant to the policy
provisions or to an account or person specified by such claimant; or (ii) draft
drawn upon the insurer or by check of the insurer to the order of the claimant
to whom payment of the claim is due pursuant to the policy provisions, or to a
person specified by such claimant.

C. No plan or arrangement shall be used where any person other than the insurer
or its designated claim representative shall be authorized to settle or adjust
claims. The creditor shall not be designated as claim representative for the
insurer in adjusting claims. A group policyholder may, by arrangement with the
insurer, draw drafts or checks, or credit by electronic means in payment of
claims due to the group policyholder subject to audit and review by the insurer.
The insurer shall periodically review claims payments made on its behalf by
claim representatives or group policyholders.

HISTORY: 1960, c. 67, § 38.1-482.11; 1982, c. 223, § 38.2-3713; 1986, c. 562;
1992, c. 586.