Term life insurance in the state of Virginia is under the regulations outlined in the Code of Virginia’s Section 38. These regulations are in place for the safety and protection of the insurance policy holders. Every state has a few life insurance-related laws that are universal throughout the country, but some there are some slight variations from state to state. As a result, anyone who has or is interested in getting a Virginia term life insurance policy will benefit from learning what these laws are.
Virginia Free Look and Grace Period
The free look period is one of the most basic life insurance regulations. The free look period allows new policy holders to decline the coverage and receive a full refund of their premium without any penalty. The amount of time for a free look period can vary from state to state. However, for Virginia term life insurance, this period lasts for a minumum of 10 days. The grace period, available in most states, allows coverage to continue for 30 to 31 days before cancelation in the event of a missed payment.
Virginia Life Insurance Guarantee Association
The Virginia Life, Accident & Sickness Insurance Guarantee Association is an organization that exists solely to help cover insurance policies in the case of the insurer’s insolvency. In order to qualify for help in these cases, the insurance company must be licensed in the state of Virginia. In the case of an insurer’s bankruptcy, the holder of a Virginia term life insurance policy may receive a compensation from the association for a lost death benefit no larger than $300,000 per individual policy.
Virginia Life Insurance Privacy Laws
According to state law, the holders of Virginia term life insurance policies are well protected as far as their privacy is concerned. The insurance company may not disclose any personal records and information without the written permission of the policy holder. In addition to this, if a policy holder wishes to personally request disclosure, this must be submitted in writing as well. Therefore, a policy holder in Virginia can be assured that their information will be properly maintained.
Virginia Insurance Company Protections
While the law is often on the side of the policy holders, insurance companies also have legal provisions in place to keep them protected. A policy may be legally canceled without any refunds or compensation at any time within the first two years of discovering any misrepresentation on the part of the buyer in their policies or applications. In addition to this, insurance companies in Virginia are not bound to pay a claim on a suicide death during the first two years after the policy was made, though the premiums can be refunded.
With such legal protections as the free look period, the grace period, and the privacy regulations in place to protect the insurance policy holders, purchasing term life insurance becomes a low risk endeavor. With some light research into the state laws and the fine print of the local life insurance company, purchasing a Virginia term life insurance policy can be easy and you will be better equipped to deal with the legal ins and outs of insurance.