Be it enacted by the General Assembly of Virginia:
§ 38.2-3723. Reserves.
A. Each insurer licensed to write credit life insurance in this Commonwealth
shall establish and maintain reserves on all such business written in this
B. Each insurer licensed to write credit accident and sickness insurance in
this Commonwealth shall establish and maintain reserves on all such business
written in this Commonwealth
C. In no event shall the aggregate reserves for all policies, contracts and benefits be less than the aggregate reserves determined by a qualified actuary to be necessary to support fully the insurer’s obligations under its policies, certificates and contracts.
§ 38.2-3729. Refunds.
A. Each individual policy or group certificate shall provide that, in the event of termination of the insurance prior to the scheduled maturity date of the indebtedness, any refund of an amount paid by the debtor for insurance shall be paid or credited promptly to the person entitled thereto.
B. If a creditor requires a debtor to make any payment for credit life insurance or credit accident and sickness insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written notice to such debtor and shall promptly make an appropriate credit to the account.
C. Refund formulas which any insurer desires to use for decreasing term credit
D. The requirements of subsection C of this section that refund formulas be filed with the Commission shall be considered fulfilled if the refund formulas are set forth in the individual policy or group certificate filed with the Commission.
E. Refunds may be computed:
1. On a daily basis; or
2. From the end of the loan month if sixteen days or more of a loan month have been earned, provided that, if fifteen days or less of a loan month have been earned, the refund is computed from the beginning of the loan month.
F. No refund of one dollar or less need be made.
G. Refunds shall be made in accordance with this chapter without regard as to whether or not the refund has been requested by the debtor.
H. Voluntary prepayment of indebtedness. If a debtor prepays the indebtedness other than as a result of death:
1. Any credit life insurance covering such indebtedness shall be terminated and an appropriate refund of the credit life insurance premium shall be paid to the debtor in accordance with this section; and
2. Any credit accident and sickness insurance covering such indebtedness shall be terminated and an appropriate refund of the credit accident and sickness insurance premium shall be paid to the debtor in accordance with this section. If a claim under such coverage is in progress at the time of prepayment, the amount of refund may be determined as if the prepayment did not occur until the payment of benefits terminates. No refund need be paid during any period of disability for which credit accident and sickness benefits are payable. A refund shall be computed as if prepayment occurred at the end of the disability period.
I. Involuntary prepayment of indebtedness. If an indebtedness is prepaid by the proceeds of a credit life insurance policy covering the debtor, then it shall be the responsibility of the insurer to see that the following are paid to the insured debtor, if living, or the beneficiary, other than the creditor, named by the debtor or to the debtor's estate:
1. An appropriate refund of the credit accident and sickness insurance premium in accordance with this section; and
2. The amount of benefits in excess of the amount required to repay the indebtedness after crediting any unearned interest or finance charges.