38.2-3720 - Amount of credit life insurance and credit accident and sickness insurance.
§ 38.2-3720. Amount of credit life insurance and credit accident and sicknessinsurance.
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 amountof unpaid indebtedness.
2. Notwithstanding the provisions of subdivision A 1, insurance onagricultural credit transaction commitments not exceeding one year induration may be written up to the amount of the loan commitment, on anondecreasing or level-term plan.
3. Notwithstanding the provisions of subdivision A 1 of this subsection, orany other subsection, insurance on educational credit transaction commitmentsmay be written for the amount of the loan commitment.
B. Credit accident and sickness insurance. - The total amount of periodicindemnity payable by credit accident and sickness insurance in the event ofdisability, as defined in the policy, shall not exceed the aggregate of theperiodic scheduled unpaid installments of the indebtedness; and the amount ofeach periodic indemnity payment shall not exceed the original indebtednessdivided by the number of periodic installments.
C. Maximum aggregate provisions. - A provision in a credit life insurance orcredit accident and sickness insurance policy or certificate issuedthereunder that sets a maximum limit on total benefits payable thereundershall apply only to that specific indebtedness for which such policy orcertificate was issued.
D. The amount of credit life insurance on an indebtedness of any debtor shallnot exceed $70,000 with any one insurance company.
(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.)