Virginia Life Insurance

Virginia life insurance laws deal primarily with claims issues. However, familiarizing yourself with some basic regulations is still key to making wise coverage decisions.

This page:

  • Briefly describes Virginia life insurance regulations.

  • Explains the protection of the Virginia Guaranty Association.

  • Links to more information about life insurance in Virginia.

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Virginia life insurance rights and regulations

The insurance industry in Virginia is regulated under Section 38 of the Code of Virginia. These codes outline claims procedures and policy requirements for the benefit and protection of you, the consumer.

One such consumer protection is the 10-day "free look" provision contained, by law, in every Viginia life insurance policy. During this window, a new policyholder can decide to decline the coverage and still recieve a full refund of premiums, without penalty.

The privacy of Virginia life insurance policyholders is also potected by state law. Insurers cannot disclose personal information without the written authorization of the policyholder. (All personal requests for disclosure should also be made in writing.)

And while claims procedures in Virginia vary from company to company, insurers are obligated to settle claims in a timely manner. If one is not, the benefits will begin accruing interest.

However, Virginia law extends some protections to insurers, too. Consumer misrepresentation on a policy or application, if discovered within the first two years of the policy, can result in its cancellation. The insurer won't be obligated to honor any claims.

A misstatement of age can be discovered at any time and will result in the reduction of death benefits to reflect the actual age of the insured.

Virginia insurers are also exempt from paying claims made within the first two years where suicide is the cause of death. (Premiums will be refunded.)

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If you are ready to apply for a Virginia term life insurance policy, or if you just want a quick online quote, visit Netquote now.
If you are not sure about what type of life coverage you want, you can also try Insurecom. They will put you in touch with agents who can answer any questions that you might have.

The Virginia Life Insurance Guaranty

Licensed insurance companies in Virginia pay annual fees to the Virginia Life, Accident & Sickness Insurance Guaranty Association. This organization is designed to protect insurance consumers, like you, by helping cover policies lost through insurance company insolvency.

However, there are restrictions on this protection. In Virginia the compensation for lost death benefits is limited to $300,000, and compensation for net cash surrender or withdrawal is limited to $100,000. These limits are per person, and apply even in the event of multiple policies with a higher total amount of coverage.

And your insurer must be licensed in Virginia to qualify for the guaranty's backing. To check the status of an insurer, you can call the Virginia consumer inquiries hotline at 800-552-7945 or 804-371-9741.

Sidebar
Apply for a quote with confidence at Netquote
(for Virginia term life insurance), or Insurecom.
Your insurer will be licensed in Virginia.

Other notes on Virginia life insurance

Insurance illustrations, which are financial projections made by an insurer, are regulated by the Virginia Department of Insurance. Specifically, there are certain required elements for illustrations used with flexible premium adjustable life insurance products. These can be researched on the department's official website.

Viatical settlements are permitted in Virginia. These arrangements involve the third-party purchase of a life insurance policy from the insured, and it's wise to seek the aid of a licensed agent before arranging one

More VA life insurance help

If you want more help getting the best value on your VA life insurance policy, start with our guide to term life insurance or sign-up for our free life insurance course (see below).

To find out more about VA life insurance laws and regulations, visit the official website of the Virginia Bureau of Insurance.

For more help . . .

Getting the lowest possible premium on your life insurance is almost like an art form. There are many variables to consider, and to get the right balance of term length, benefit amounts, and policy riders and illustrations, you need to take a careful step-by-step approach to the buying process.

Our free life insurance course is designed to help you do just that.

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