38.2-3119 - Limitation on § 38.2-3118. - Virginia Statutes

§ 38.2-3119. Limitation on § 38.2-3118.

A. The provisions of § 38.2-3118 shall not apply to any proportionate part ofthe proceeds of any such policy or supplemental contract mentioned in §38.2-3118 arising or resulting from premiums paid by the beneficiary. Theproportionate part of the proceeds shall be determined by comparing the totalpremiums paid for the policy, without interest, with the premiums for thepolicy, without interest, paid by the beneficiary.

B. Notwithstanding the other provisions of this section, an insurer who (i)has no written notice of any claim that premiums have been paid by thebeneficiary and (ii) has no written notice of an adverse claim of any othercharacter under this section, shall be protected in making or withholdingpayments pursuant to the terms of a policy or supplemental agreement.

C. Notwithstanding the other provisions of this section, upon an insurer'sacceptance of proof that premiums have been paid by the beneficiary and theinsurer's payment of the corresponding proportionate part of the proceeds ofthe policy or supplemental agreement, the insurer's payment shall constitutefull release of the insurer from all liability with respect to theproportionate part of the proceeds of the policy or supplemental agreement.

(Code 1950, § 38-116; 1952, c. 317, § 38.1-445; 1986, c. 562.)