Chap. 104.—An ACT to amend and re-enact Section 4222 of the Code of Virginia
relating to resident agents of insurance companies; countersignature of in-
surance policies; and prohibition of discriminations. {[S B 156]

Approved March 4, 1936

1. Be it enacted by the General Assembly of Virginia, That section
forty-two hundred and twenty-two of the Code of Virginia be
amended and re-enacted so as to read as follows:

Section 4222. Insurance Companies Not to Do Business in Vir-
ginia Except Through Resident Agents; Countersignature; Excep-
tion; Discriminations Prohibited; Agents Not to Make Agreements
Not Expressed in the Policies; Notice to Companies to Refrain From
Making Discrimination; Exceptions——(a) Insurance companies, le-
gally authorized to do business in this State, except life, title and
ocean marine insurance companies, shall not make contracts of in-
surance or surety on persons or property herein, except through reg-
ularly constituted and registered agents of such companies residing
in and having their principal places of business in the State of Vir-
ginia; no contract of insurance or surety covering persons or property
in this State, except contracts of life, title and ocean marine insur-
ance, shall be written, issued or delivered by any such authorized in-
surance company, or any of its representatives, unless such contract
is duly countersigned in writing by a regularly constituted and reg-
istered agent of such company whose residence and principal place of
business is in this State; no salaried officer, manager or other salaried
representative of any legally authorized insurance company, except a

_

mutual insurance company, unless he be a bona fide registered resi-
dent agent, shall write, issue or countersign any contract or policy of
insurance or surety, or any renewal thereof, covering persons or prop-
erty in this State, except contracts or policies of life, title and ocean
marine insurance; provided that this section shall not apply to rail-
road companies and other common carriers engaged in interestate
commerce.

(b) No life insurance corporation doing business in this State shall
make any discrimination in favor of individuals of the same class or
of the same expectation of life, either in the amount of premium
charged or in any return of premium, dividends or other advantages.
No policy of life insurance shall be issued or delivered in this State
if it shall purport to be issued or to take effect, at an age lower than
the actual age of the applicant at the time of the original written ap-
plication.

(c) No agent of any insurance corporation shall make any con-
tract for insurance or agreement as to such contract other than that
which is plainly expressed in the policy issued. No insurance cor-
poration or agent thereof shall pay, or allow or offer to pay, or allow
as an inducement to any person to insure, any rebate of premium, or
any special favor or advantage whatever in the dividends to accrue
thereon, or any inducement whatever not specified in the policy.

(d) If it shall appear to the satisfaction of the State Corporation
Commission after due hearing upon notice, that any insurance com-
pany or corporation is issuing policies or making contracts that are
directly or indirectly in violation of this section, the commission shall
require such company or corporation, and its officers and agents, to
refrain within twenty days from making any such policy or contract ;
provided, that nothing in this chapter shall be so construed as to forbid
a company transacting industrial insurance on a weekly payment plan
with weekly collections of premiums at the homes of the insured, from
returning to policyholders who have made premium payments directly
to the company at its home office or district offices, the savings which
the company effects through such direct payment, or to forbid a life
insurance company from allowing its bona fide employees to receive a
commission on the premiums paid by them on policies on their own lives.