Nothing contained in Title 38.2 shall be construed as prohibiting the performance of any contract made for the introduction of automatic sprinklers for reducing the risk by fire on any property located in this Commonwealth and containing provisions for obtaining or guaranteeing insurance against loss or damage by fire or water for a specified time at a fixed rate; provided, that all insurance contracts issued as a result of such contracts shall be in the form required by law in this Commonwealth; provided, further, that the contract rate be less than the published rate on risks covered thereby or the rate used by insurance companies writing such risks.

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Terms Used In Virginia Code 27-5

  • Contract: A legal written agreement that becomes binding when signed.
  • Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
    • You are late making a payment or commit some other default, triggering an increase to a penalty rate
    • The bank changes the terms of your account and you do not reject the change.
    • The rate expires (if the rate was fixed for only a certain period of time).

1930, p. 23; Michie Code 1942, § 4246c.

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