Administrative Code

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Virginia Administrative Code
Title 14. Insurance
Agency 5. State Corporation Commission, Bureau Of Insurance
Chapter 70. Rules Governing Accelerated Benefits Provisions

14VAC5-70-70. Criteria for payment; lump sum settlement option; restrictions on use of proceeds; accidental death benefit provision.

A. Contract payment options shall include the option to take the benefit as a lump sum. The benefit shall not be made available as an annuity contingent upon the life of the insured.

B. No restrictions are permitted on the use of the proceeds.

C. If any death benefit remains after payment of an accelerated benefit, the accidental death provision, if any, in the policy or rider shall not be affected by the payment of the accelerated benefit.

Statutory Authority

§ 38.2-223 of the Code of Virginia.

Historical Notes

Derived from Regulation 44, Case No. INS920076, § 8, eff. June 1, 1992.

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