Chap. 299.—An ACT to amend the Code of Virginia by adding thereto a new sec-
tion numbered 4235-d, prohibiting, subject to certain exceptions, domestic in-
surance companies of this State from insuring the lives and persons of residents
of certain other States. [H B 375]

Approved March 30, 1942

1. Be it enacted by the General Assembly of Virginia, That the
Code of Virginia be amended by adding thereto a new section numbered
forty-two hundred and thirty-five-d, which new section shall read as fol-
lows:

Section 4235-d. Domestic insurance companies prohibited from in-
suring lives. and persons of certain residents of “reciprocal states”; ex-
ceptions. |

(a) As used in this section, the term “reciprocal state” means a
state the laws of which prohibit a domestic insurer thereof from insuring
the lives or persons of residents of Virginia unless such insurer is au-
thorized pursuant to the laws of Virginia to transact such insurance in this
State; such prohibition may be subject to exceptions similar to those set
forth in this section.
- (b) Subject to the exceptions hereinafter set forth in subsection
(c) of this section, a domestic insurance company shall not enter into a
contract of insurance upon the life or person of a resident of a reciprocal
state unless such company is authorized pursuant to the laws of such re-
ciprocal state to transact such insurance therein; the State Corporation
Commission shall annually mail to every domestic insurance company of
this State notice specifying the several reciprocal states.

(c) The following constitute exceptions to the foregoing provisions
of this section:

(1) Contracts entered into where the person insured, or proposed
to be insured, is, when he signs the application, personally present in a
state in which the insurer is authorized to transact Insurance ;

(2) Issuance of certificates under any lawfully transacted group
life, group accident, group health or other group disability policy, where
the master policy is entered into in a state in which the insurer is then
authorized to transact insurance.

(3) The renewal, reinstatement, conversion or continuance in force,
with or without modification, of contracts otherwise lawful and which
were not originally executed in violation of this section.