38.2-321 - Payment discharges insurer. - Virginia Statutes

§ 38.2-321. Payment discharges insurer.

A. An insurer shall be fully discharged from all claims under a lifeinsurance policy, accident and sickness insurance policy, or annuity contract:

1. When the proceeds of or payments under a policy or contract become payablein accordance with (i) the terms of the policy or contract or (ii) theexercise of any right or privilege under the contract; and

2. If the insurer makes payments in accordance with the terms of the policyor contract or any written assignment to the person designated in the policyor contract or by assignment as being entitled to the proceeds or payments.

B. An insurer may not be fully discharged from all claims under a lifeinsurance policy, accident and sickness insurance policy, or annuity contractbefore payment is made and if the insurer has received, at its home office,written notice that some other person claims to be entitled to payment orsome interest in the policy or contract.

(1952, c. 317, § 38.1-346.1; 1986, c. 562.)