Virginia Life Insurance
- Virginia life insurance policies follow state-specific rules to ensure fair practices. Read here for more on these regulations and resources for policyholders.
If your financial assets wouldn't be enough to cover your dependents' needs in the event of your death, purchasing a life insurance policy may provide valuable protection when they need it most. Understanding the regulations for life insurance in Virginia can help you make informed decisions and find the right policy for your needs.
Virginia Life Insurance Rules and Specifics
Life insurance companies that sell policies in Virginia follow the regulations set in Title 38.2 in the Virginia Code and are monitored by the Virginia Bureau of Insurance. These regulations ensure fair claims practices and prompt payment for beneficiaries.
Free Look Periods
From the day you purchase a life insurance policy, you have 10 days to review its coverage, terms and conditions to ensure it's adequate for your needs. Within that time period, called the free look period, you may cancel your coverage and receive a full refund of any premiums you've paid.
Under state law, life insurance policies have a 31-day grace period. This period begins on your premium's due date, and you may have an interest charge of up to 6% until you pay the premium in full.
From the date the insurer issues the life insurance policy, it has two years to verify the policyholder's general health, lifestyle or anything else that could void the policy. After that two-year period, a policy can only be considered void if the insured doesn't pay their premium.
When a beneficiary files a life insurance claim, state law requires that the insurer pays out on the claim promptly. In Virginia, there's no set timeframe, but claims are typically settled within a month.
Protection of the Insurer Becomes Insolvent
In Virginia, life insurance policies are backed by the Life, Accident, and Sickness Insurance Guaranty Association. If your insurer becomes insolvent, the Guaranty Association can compensate the policy up to $300,000 for death benefits and $100,00 for lost cash surrender.
Life Insurance Resources in Virginia
The Virginia Life Insurance Consumer's Guide provides comprehensive information on life insurance policies in the state, including the types of coverage available, living benefits and death benefits, other types of coverage and what to keep in mind when purchasing a policy. It also features a list of frequently asked questions and details on what to do if a problem occurs.
The Life, Accidents, and Sickness Insurance Guaranty Association is made up of all insurers that sell policies in Virginia. If an insurer declares bankruptcy and is not able to fulfill financial obligations to policyholders, the association provides protection to Virginia residents.
The Office of the Attorney General fields and investigates complaints filed regarding life insurance companies, including unfair claims practices, canceled policies and billing errors.