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1999 SESSION

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990243324
HOUSE BILL NO. 2345 Offered January 21, 1999 A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.3:1, relating to health insurance; premium arrearages. ---------- Patrons-- Marshall, Hamilton, Keating and Morgan ---------- Referred to Committee on Corporations, Insurance and Banking ----------

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding a section numbered 38.2-3407.3:1 as follows:

§ 38.2-3407.3:1. Premium payment arrearages; order of crediting payments.

Each (i) insurer proposing to issue individual or group accident and sickness insurance policies providing hospital, medical and surgical or major medical coverage on an expense-incurred basis, (ii) corporation providing individual or group accident and sickness subscription contracts, and (iii) health maintenance organization providing a health care plan for health care services shall when receiving premium payments in arrears, credit any such payments first to the longest-outstanding arrearage, and then in succession to the most recent arrearage or payment due.