Each insurance policy shall have a provision that the insured is entitled to a thirty-one-day period within which the payment of any premium or assessment after the first payment may be made. At the option of the insurer this may be subject to a reasonable interest charge for the number of days of grace elapsing before the payment of the premium or assessment. The provision shall also state that during the grace period the policy shall continue in full force, but if a claim arises under the policy during the grace period before the overdue premium or assessment is paid, the amount of such premium or assessment, with applicable interest, may be deducted from any amount payable under the policy in settlement.
1985, c. 400, § 38.1-549.14; 1986, c. 562.
Structure Code of Virginia
Chapter 39 - Mutual Assessment Life, Accident and Sickness Insurers
§ 38.2-3903. What laws applicable
§ 38.2-3904. Conversion of mutual assessment life, accident and sickness insurers
§ 38.2-3905. Incorporation of companies
§ 38.2-3906. Licensing of additional companies prohibited
§ 38.2-3907. Directors; terms; annual meetings; voting; executive committee
§ 38.2-3909. Inspection of books and papers
§ 38.2-3910. Policy forms to be filed
§ 38.2-3911. Time limit on certain defenses
§ 38.2-3912. Incontestability of policies
§ 38.2-3913. Required grace periods
§ 38.2-3914. Policy to specify amount of payment and when to be paid
§ 38.2-3915. Assessment contract
§ 38.2-3916. Classification of risks; rates
§ 38.2-3917. Right to limit assessment liability; when contingent assessment liability waived
§ 38.2-3918. Notice of assessment; how given
§ 38.2-3919. Agents' licenses required
§ 38.2-3920. Surplus to policyowners