CHAPTER 383

An Act to amend the Code of Virginia by adding a new section numbered
88.1-287.1, said section relating to group accident and sickness insur-
ance contracts when written by life agents resident in Virginia, and the
division of commissions received for procuring such contracts.

[H 575]
Approved April 2, 1954
Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a new section num-
ber 38.1-287.1 as follows:

§ 38.1-287.1. Division of commissions by life agents resident in Vir-
ginia of mutual life companies.—Notwithstanding the provisions of § 38.1-
287, a life agent resident in Virginia of a mutual life insurance company
which 1s authorized and licensed to transact life insurance, annuities and
accident and sickness insurance shall be entitled to and shall receive the
usual commission allowed and paid on contracts of group accident and
sickness insurance covering subjects of insurance located or resident or to
be performed in this State and written, countersigned or delivered by such
life agent. The life agent may divide such commission with any other life
agent resident in Virginia or with any nonresident insurance broker li-
censed in this State 1f such agent or broker (1) 7s licensed to transact the
xind of insurance for which the contract is written, and (2) requested the
writing, issuing or countersigning of the contract. If such division 1s made
between life agents resident in Virginia the division may be on such basis
as is mutally satisfactory, but if made between a life agent resident in
Virginia of any such company and a nonresident broker the life agent
resident in Virginia shall retain not less than fifty per centum of the usual
and customary commissions paid local life agents in this State for the
production of such business.