Virginia Life Insurance Laws and Rules Practice Exam

In Virginia, if a life insurance policyholder does not pay their premium by the due date, the insurer is required to notify the policyholder of the lapse in coverage. This notification must occur within 30 days of the premium due date. This regulation is designed to ensure that policyholders are made aware of the status of their policy and given adequate opportunity to rectify the situation by making the overdue payment before the policy lapses.

Understanding this time frame is crucial for both policyholders and insurers. It safeguards the policyholder’s interests by giving them timely notice, while also meeting legal requirements for the insurance company. This promotes responsible management of policies and supports the integrity of the insurance industry in providing clear communication to policyholders.