38.2-1805 - Acceptance by insurance agents of premiums in arrears; how advance premiums recorded.
§ 38.2-1805. Acceptance by insurance agents of premiums in arrears; howadvance premiums recorded.
A. No agent of a home service insurer shall accept, and no insurer orlicensed agent shall knowingly permit an agent to accept, payment of premiumsin arrears on any policy of life insurance or accident and sickness insuranceon which the premiums are collected at least monthly that has lapsed and thatthe insured seeks to reinstate, unless the payment (i) at least equals thetotal of all premiums in arrears and (ii) entitles the policyholder to makeimmediate application for reinstatement of the policy. As used in thischapter, "home service insurer" means an insurer selling industrial orordinary life insurance or accident and sickness insurance on a debit, wherethe premiums are payable at least monthly directly by the owner of the policyor a person representing the owner to a representative of the insurer.
B. Every advance premium paid to an agent on a life insurance policy oraccident and sickness insurance policy on which the premiums are collected atleast monthly shall be recorded in the receipt book of the insured and in therecord book of the agent in exactly the same manner as current premiums arerecorded. However, the failure to do so shall not invalidate the policy.
(Code 1950, § 38.1-293; 1952, c. 317; 1979, c. 513, § 38.1-327.6; 1986, c.562; 1987, c. 521; 1990, c. 464; 2001, c. 706.)