77681938.2-3735Virginia Decodedhttps://vacode.org2016InsuranceCredit Life Insurance And Credit Accident And Sickness InsuranceDisclosure and readability1992, c. 586; 1999, c. 586; 2009, c. 643; 2010, c. 211.http://law.lis.virginia.gov/vacode/38.2-3735/38.2-3724Policy provisions; disclosure to debtors; delivery of policy or certificate/38.2-3724//38.2-3735/38.2/37.1/38.2-373538.2-23338.2-3737

If a creditor makes available to the debtors more than one plan of credit life insurance or more than one plan of credit accident and sickness insurance, all debtors must be informed of all such plans for which they are eligible. In the case of credit life insurance:section

A

AA1

If a creditor offers a plan of insurance that insures the actual amount of unpaid indebtedness, the creditor shall also offer to the debtor a plan of insurance that insures only the actual amount of indebtedness less any unearned interest or finance charges; andsection

A

1

A1A12

section

A

2

A2A22

When elective credit insurance is offered, the borrower must be given written disclosure that purchase of credit insurance is not required and is not a factor in granting credit. The disclosure shall also include notice that the borrower has the right to use alternative coverage or to buy insurance elsewhere.section

B

BB1

If the debtor is given a contract which includes a single premium payment to be charged for elective credit insurance, the debtor must be given:section

C

CC1

A contract which does not include the elective credit insurance premium; orsection

C

1

C1C12

section

C

2

C2C22

If credit life insurance or credit accident and sickness insurance is required as security for any indebtedness, the debtor shall have the option of (i) furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or (ii) procuring and furnishing the required coverage through any insurer authorized to transact insurance in thisection

D

DD1

section

E

EE1

The Commission shall not approve any form unless the policy or certificate is written in nontechnical, readily understandable language, using words of common everyday usage.A form shall be deemed acceptable under this section if the insurer certifies that the form achieves a Flesch Readability Score of forty or more, using the Flesch Readability Formula as set forth in Rudolf Flesch, The Art of Readable Writing (1949, as revised 1974), and certifies compliance with the guidelines set forth in this section.section

F

FF1