38.2-3354 - Prohibited provisions. - Virginia Statutes

§ 38.2-3354. Prohibited provisions.

No industrial life insurance policy shall be delivered or issued for deliveryin this Commonwealth if it contains any of the following provisions:

1. Limiting the time within which any action at law or in equity may becommenced to less than one year after the cause of action accrues;

2. For any mode of settlement at maturity of less value than the amountinsured by the policy plus any dividend additions to the policy, less (i) anyindebtedness to the insurer on or secured by the policy and (ii) any premiumthat may by the terms of the policy be deducted. This subdivision shall notapply to any nonforfeiture provision that employs the cash value less anyindebtedness, to purchase paid up or extended insurance, and shall notprohibit the issuance of policies providing for a limitation in the amountpayable under certain specified conditions; or

3. To the effect that the agent soliciting the insurance is the agent of theperson insured under the policy, or making the acts or representations of theagent binding upon the person insured under the policy.

(Code 1950, § 38-437; 1952, c. 317, § 38.1-422; 1986, c. 562.)