State RegulationsVA specificDifficulty 1/5
Under Virginia's payment-of-premiums rule for individual life policies, when are premium payments due under Va. Code § 38.2-3302?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Va. Code § 38.2-3302 requires premiums for individual life policies to be payable in advance, in accordance with the mode of premium payment selected under the policy. Coverage is paid for on the front end — which is why a missed premium triggers the grace period rather than a mid-period cancellation. The rule pairs with the grace-period statute: the premium comes due first, and Va. Code § 38.2-3303 then gives the policyowner a cushion after the due date.
Why the other options are wrong
- A) Premiums are payable in advance, not in arrears; the coverage period is paid for before it runs.
- B) The timing follows the policy's premium mode under Va. Code § 38.2-3302; the policyowner cannot simply pay whenever he pleases.
- C) No past-due notice is a precondition; the due date is fixed by the policy's mode of payment.
Memory hook
Life premiums pay the toll before the drive — in advance, per the policy's mode.