38.2-3913 - Required grace periods. - Virginia Statutes

§ 38.2-3913. Required grace periods.

Each insurance policy shall have a provision that the insured is entitled toa thirty-one-day period within which the payment of any premium or assessmentafter the first payment may be made. At the option of the insurer this may besubject to a reasonable interest charge for the number of days of graceelapsing before the payment of the premium or assessment. The provision shallalso state that during the grace period the policy shall continue in fullforce, but if a claim arises under the policy during the grace period beforethe overdue premium or assessment is paid, the amount of such premium orassessment, with applicable interest, may be deducted from any amount payableunder the policy in settlement.

(1985, c. 400, § 38.1-549.14; 1986, c. 562.)