38.2-2200 - Required provisions as to insolvency or bankruptcy, and as to when action maintained against insurer. - Virginia Statutes

§ 38.2-2200. Required provisions as to insolvency or bankruptcy, and as towhen action maintained against insurer.

No policy or contract insuring or indemnifying against liability for injuryto or the death of any person, liability for injury to or destruction ofproperty, or liability for injury to the economic interests of any person,shall be issued or delivered in the Commonwealth unless it contains insubstance the following provisions or other provisions that are at leastequally favorable to the insured and to judgment creditors:

1. That the insolvency or bankruptcy of the insured, or the insolvency of theinsured's estate, shall not relieve the insurer of any of its obligationsunder the policy or contract.

2. That if execution on a judgment against the insured or his personalrepresentative is returned unsatisfied in an action brought to recoverdamages for injury sustained or for loss or damage incurred during the lifeof the policy or contract, then an action may be maintained against theinsurer under the terms of the policy or contract for the amount of thejudgment not exceeding the amount of the applicable limit of coverage underthe policy or contract.

(Code 1950, § 38-238; 1952, c. 317, § 38.1-380; 1986, c. 562; 2005, c. 290.)