2006 Code of Virginia § 38.2-3316 - Provisions prohibited

38.2-3316. Provisions prohibited.

No individual life insurance policy shall be delivered or issued for deliveryin this Commonwealth if it contains any provision:

1. Limiting the time within which any action at law or in equity may becommenced to less than one year after the cause of action accrues;

2. For any mode of settlement at maturity, of less value than the amountinsured on the face of the policy plus any dividend additions, less anyindebtedness to the insurer on or secured by the policy, and less any premiumor portion of any premium, that may by the terms of the policy be deducted.This paragraph shall not apply to any nonforfeiture provision that employsthe cash value less any indebtedness to purchase paid-up or extendedinsurance, and shall not prohibit the issuance of policies providing for alimitation in the amount payable under certain specified conditions;

3. For forfeiture of the policy for failure to repay any loan on the policy,or to pay interest on any policy loan, while the total indebtedness on thepolicy, including interest, is less than the loan value of the policy; or

4. To the effect that the agent soliciting the insurance is the agent of theperson insured under the policy, or making the acts or representations of theagent binding upon the person insured under the policy.

(Code 1950, 38-386; 1952, c. 317, 38.1-406; 1956, c. 417; 1986, c. 562.)