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1998 SESSION

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HB 721 Credit insurance.

Introduced by: Eric I. Cantor | all patrons    ...    notes | add to my profiles

SUMMARY:

Credit insurance. Modifies Virginia's credit insurance laws. Included in the bill are provisions which (i) alter disclosure, enrollment request, and readability requirements applicable to the purchase of credit involuntary unemployment insurance, credit life insurance, and credit accident and sickness insurance; (ii) authorize combination credit insurance coverages which combine credit life, credit accident, credit involuntary unemployment and credit personal property insurance coverages under separate or combined policies; (iii) permit lump-sum disability payments (under credit accident and sickness insurance policies) where benefit payments are equal to the total of all future periodic payments; (iv) increase from $70,000 to $225,000 the amount of credit life insurance that may be underwritten on a debtor by one insurance company; (v) reduce required loss ratios for credit accident and sickness insurance from 60 percent to 50 percent or lower and reduce required loss ratios for credit life insurance from 60 percent to 60 percent or less; (vi) eliminate triennial, regulatory hearings by the Virginia State Corporation Commission for the purpose of determining actual insurer loss ratios and adjusting prima facie rates; and (vii) permit employees of a creditor or insurer, or of their respective affiliates or related entities, to enroll debtors under various group credit insurance policies without holding licenses as insurance agents, if no commissions are paid to that employee.


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