§ 38.2-3200. Nonforfeiture benefits and cash surrender values in lifepolicies issued prior to operative date stated in § 38.2-3214.
A. This section shall apply only to life insurance policies issued prior tothe operative date stated in § 38.2-3214.
B. The nonforfeiture benefit referred to in § 38.2-3309 shall be available tothe insured in the event of default in premium payments, after premiums havebeen paid for three full years. The premium paid for the insured under anypolicy provision shall not be considered in default. The nonforfeiturebenefit shall be a stipulated form of insurance, effective from the due dateof the defaulted premium, the net value of which shall at least equal thereserve at the date of default on the policy and on any dividend additions tothe policy, exclusive of the reserve on account of return premium insuranceand on total and permanent disability and additional accidental deathbenefits, less a sum not more than 2 1/2 percent of the amount insured by thepolicy and of any dividend additions to the policy and less any existingindebtedness to the insurer on or secured by the policy. The policy shallspecify the mortality table and rate of interest used in computing thesereserves. Instead of allowing a deduction from the reserve of a sum not morethan 2 1/2 percent of the amount insured by the policy, and of any dividendadditions to the policy, the insurer may insert in the policy a provisionthat one-fifth of the reserve may be deducted, or may provide in the policythat a deduction may be made of 2 1/2 percent of the amount insured by thepolicy or one-fifth of the reserve, at the insurer's option. The cashsurrender value referred to in § 38.2-3309 shall be available upon surrenderof the policy to the insurer within one month of the due date of thedefaulted premium and shall at least equal the sum which would otherwise beavailable for the purchase of insurance. The insurer may defer payment fornot more than three months after the application for the cash surrender valueis made.
C. If more than one option is provided, the policy shall stipulate which ofthe options shall be effective if the insured does not elect any option on orbefore the expiration of the grace period allowed for the payment of thepremium.
D. A provision may also be inserted in the policy that in the event ofdefault in a premium payment before the options become available, the reserveon any dividend additions then in force may, at the insurer's option, be paidin cash or applied as a net premium to the purchase of paid-up term insurancefor any amount not exceeding the face amount of the original policy.
E. This section shall apply to term insurance policies only if the term isfor more than twenty years.
(Code 1950, § 38-374; 1952, c. 317, § 38.1-459; 1986, c. 562.)
§ 38.2-3200. Nonforfeiture benefits and cash surrender values in lifepolicies issued prior to operative date stated in § 38.2-3214.
A. This section shall apply only to life insurance policies issued prior tothe operative date stated in § 38.2-3214.
B. The nonforfeiture benefit referred to in § 38.2-3309 shall be available tothe insured in the event of default in premium payments, after premiums havebeen paid for three full years. The premium paid for the insured under anypolicy provision shall not be considered in default. The nonforfeiturebenefit shall be a stipulated form of insurance, effective from the due dateof the defaulted premium, the net value of which shall at least equal thereserve at the date of default on the policy and on any dividend additions tothe policy, exclusive of the reserve on account of return premium insuranceand on total and permanent disability and additional accidental deathbenefits, less a sum not more than 2 1/2 percent of the amount insured by thepolicy and of any dividend additions to the policy and less any existingindebtedness to the insurer on or secured by the policy. The policy shallspecify the mortality table and rate of interest used in computing thesereserves. Instead of allowing a deduction from the reserve of a sum not morethan 2 1/2 percent of the amount insured by the policy, and of any dividendadditions to the policy, the insurer may insert in the policy a provisionthat one-fifth of the reserve may be deducted, or may provide in the policythat a deduction may be made of 2 1/2 percent of the amount insured by thepolicy or one-fifth of the reserve, at the insurer's option. The cashsurrender value referred to in § 38.2-3309 shall be available upon surrenderof the policy to the insurer within one month of the due date of thedefaulted premium and shall at least equal the sum which would otherwise beavailable for the purchase of insurance. The insurer may defer payment fornot more than three months after the application for the cash surrender valueis made.
C. If more than one option is provided, the policy shall stipulate which ofthe options shall be effective if the insured does not elect any option on orbefore the expiration of the grace period allowed for the payment of thepremium.
D. A provision may also be inserted in the policy that in the event ofdefault in a premium payment before the options become available, the reserveon any dividend additions then in force may, at the insurer's option, be paidin cash or applied as a net premium to the purchase of paid-up term insurancefor any amount not exceeding the face amount of the original policy.
E. This section shall apply to term insurance policies only if the term isfor more than twenty years.
(Code 1950, § 38-374; 1952, c. 317, § 38.1-459; 1986, c. 562.)
§ 38.2-3200. Nonforfeiture benefits and cash surrender values in lifepolicies issued prior to operative date stated in § 38.2-3214.
A. This section shall apply only to life insurance policies issued prior tothe operative date stated in § 38.2-3214.
B. The nonforfeiture benefit referred to in § 38.2-3309 shall be available tothe insured in the event of default in premium payments, after premiums havebeen paid for three full years. The premium paid for the insured under anypolicy provision shall not be considered in default. The nonforfeiturebenefit shall be a stipulated form of insurance, effective from the due dateof the defaulted premium, the net value of which shall at least equal thereserve at the date of default on the policy and on any dividend additions tothe policy, exclusive of the reserve on account of return premium insuranceand on total and permanent disability and additional accidental deathbenefits, less a sum not more than 2 1/2 percent of the amount insured by thepolicy and of any dividend additions to the policy and less any existingindebtedness to the insurer on or secured by the policy. The policy shallspecify the mortality table and rate of interest used in computing thesereserves. Instead of allowing a deduction from the reserve of a sum not morethan 2 1/2 percent of the amount insured by the policy, and of any dividendadditions to the policy, the insurer may insert in the policy a provisionthat one-fifth of the reserve may be deducted, or may provide in the policythat a deduction may be made of 2 1/2 percent of the amount insured by thepolicy or one-fifth of the reserve, at the insurer's option. The cashsurrender value referred to in § 38.2-3309 shall be available upon surrenderof the policy to the insurer within one month of the due date of thedefaulted premium and shall at least equal the sum which would otherwise beavailable for the purchase of insurance. The insurer may defer payment fornot more than three months after the application for the cash surrender valueis made.
C. If more than one option is provided, the policy shall stipulate which ofthe options shall be effective if the insured does not elect any option on orbefore the expiration of the grace period allowed for the payment of thepremium.
D. A provision may also be inserted in the policy that in the event ofdefault in a premium payment before the options become available, the reserveon any dividend additions then in force may, at the insurer's option, be paidin cash or applied as a net premium to the purchase of paid-up term insurancefor any amount not exceeding the face amount of the original policy.
E. This section shall apply to term insurance policies only if the term isfor more than twenty years.
(Code 1950, § 38-374; 1952, c. 317, § 38.1-459; 1986, c. 562.)
