CHAPTER 342

An Act to amend the Code of Virginia by adding sections numbered
$8.1-$48.2, 88.1-848.8 and 38.1-848.4, requiring both the applicant for
a policy of accident and sickness insurance and the insurance agent to
stgn a certain statement with reference to the application, providing
punishment for fraud in connection with the securing of such insurance,
prescribing a warning notice to be attached to such policies, and re-
qutring that the insured be able to return such policies within the first
ten days of the policy period and receive a refund of the premium paid.

(S 86]
Approved April 1, 1966

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding sections numbered
$8.1-348.2, 38.1-348.8 and 38.1-348.4, as follows:
§ 38.1-348.2. Every application for a policy of accident and sickness
insurance shall contain or be accompanied by, a certificate, signed by both
the applicant and the insurance agent, substantially to the following effect:
“The undersigned applicant and agent certify that the applicant has read,
or had read to him, the completed application and that he realizes that any
false statement or misrepresentation therein may result in loss of coverage
under the policy.”

§ 38.1-348.3. Any agent, physician, or other person who shall know-
ingly secure or cause to be secured by means of misrepresentations or false,
fraudulent or untrue statements a policy of accident and sickness insurance
ae person not in an insurable condition shall be punished as provided
in§ 38.1-40.

§ 38.1-348.4. Every individual or family accident and sickness insur-
ance policy, certificate, contract or plan issued for delivery in this State
on and after July one, nineteen hundred sixty-six, must have printed thereon
or attached thereto a notice stating substantially:

“YOUR POLICY MAY NOT APPLY WHEN YOU HAVE A CLAIM!
PLEASE READ! Your policy was issued based on the information entered
in your application, a copy of which is attached to the policy. If, to the
best of your knowledge and belief, there is any misstatement in your applica-
tion or if any information concerning the medical history of any insured
person has been omitted, you should advise the Company immediately
regarding the incorrect or omitted information; otherwise, your policy
may not be a valid contract.

“RIGHT TO RETURN POLICY WITHIN 10 DAYS. If for any
reason you are not satisfied with your policy, you may return it to the
Company within ten days of the date you received it and the premium you
paid will be promptly refunded.”

If a policyholder or certificate holder or purchaser of a contract or
plan returns same pursuant to such notice, coverage under such policy,
certificate, contract or plan shall become void immediately upon the mailing
or delivery of the contract, certificate, policy or plan to the insurance com-
pany at its home or branch office or to the agent through whom it was
purchased. Coverage shall exist under such policy, certificate, contract
or plan within said ten-day period until said return of the policy, certificate,
contract or plan.