Virginia lists the required provisions for individual life policies in Va. Code 38.2-3300 to 38.2-3316. Replacement is governed by 14VAC5-30, and accelerated benefits by 14VAC5-70. The national guide covers the provisions, options and riders in general. This guide gives the Virginia versions.

Required provisions

Prohibited provisions and limits

• A policy can't make the soliciting agent the insured's agent (38.2-3316).
• It can't limit suits to less than 1 year after the cause of action accrues.
• Backdating: no more than 6 months before the application to get a lower premium (38.2-3104).
• Suicide: an exclusion is allowed only within 2 years from the policy date. The insurer must return at least the premiums paid (38.2-3106).

Beneficiaries, assignment and proceeds

• Divorce: a revocable designation of a spouse becomes void on divorce or annulment. Benefits are paid as if the former spouse died first, and policies must include a notice explaining this (38.2-305).
• A policy may be assigned even if the assignee has no insurable interest, unless the policy says otherwise (38.2-3111).
• Interest on death proceeds runs daily from the date of death. The rate is the greater of 2.5% or the insurer's settlement-option rate (38.2-3115).
• Minors age 15 or older may buy life insurance on themselves, with a resident parent's written approval (38.2-3105).

Accelerated benefits (38.2-3115.1; 14VAC5-70)

• Triggers include a limited life expectancy, or being unable to perform 2 of 6 ADLs.
• The agent gives the disclosure form before or with the application. It says benefits may be taxable.
• The product can't be marketed as long-term care insurance.

Replacement (14VAC5-30)

What counts as replacement

• Lapse, surrender, conversion to reduced paid-up or extended term, or a financed purchase.
• A withdrawal, surrender or loan within 4 months before to 13 months after the new policy's date is evidence of a financed purchase.
• Exempt: credit life, and nonconvertible term expiring within 5 years.

The agent's duties

• Submit a statement, signed by applicant and agent, about existing coverage.
• Present and read the replacement notice (Form 30-A) by the time the application is taken. Both sign it.
• Leave all marketing materials with the applicant.
• Tell the applicant the existing policy's contestable and suicide periods may already have run (14VAC5-41-40).

The insurers' duties

• The replacing insurer:
  • notifies the existing insurer within 5 business days
  • gives at least a 10-day right to return
  • keeps records 5 years
• The existing insurer provides an illustration or policy summary within 5 business days of a request.
• A same-company replacement credits time already served under the old contestable and suicide periods.
• Direct-response sales use Form 30-B.

Advertising (14VAC5-41)

• A premium must be called a premium, not a deposit or investment.
• Ads can't use "vanishing premium."
• "Non-medical" ads must disclose that issue may depend on health answers.
• Agents' ads need insurer approval.
• Ads are kept 5 years after their use ends.

Common exam traps

• Free look: 10 days. Grace period: 31 days.
• Incontestability exception: nonpayment only.
• A suicide within 2 years returns at least the premiums.
• Policy loans after 3 years, at no more than 8%. Reinstatement within 3 years, with interest of no more than 6%.
• Backdating: up to 6 months. Suit limits: no less than 1 year.
• Divorce automatically revokes a revocable spouse designation.