                                 CODE OF VIRGINIA

CONTRACTUAL LIABILITY OR OTHER INSURANCE POLICIES (§ 38.2-6402)

A. Contractual liability or other insurance policies insuring GAP waivers shall
state the obligation of the insurer to reimburse or pay to the creditor any sums
the creditor is legally obligated to waive under the GAP waivers issued by the
creditor and purchased or held by the borrower.

B. Coverage under a contractual liability or other insurance policy insuring a
GAP waiver shall also cover any subsequent assignee upon the assignment, sale,
or transfer of the finance agreement.

C. Coverage under a contractual liability or other insurance policy insuring a
GAP waiver shall remain in effect unless canceled or terminated in compliance
with applicable insurance laws of the Commonwealth.

D. The cancellation or termination of a contractual liability or other insurance
policy shall not reduce the insurer&#8217;s responsibility for GAP waivers
issued by the creditor prior to the date of cancellation or termination and for
which a premium has been received by the insurer.

HISTORY: 2019, cc. 799, 800.