A. This section shall apply only to industrial life insurance policies issuedprior to the operative date stated in § 38.2-3214.
B. The nonforfeiture benefits referred to in § 38.2-3347 shall be availablein the event of default in premium payments after premiums have been paid forfive full years, without action on the part of the insured. The nonforfeiturebenefit shall be a stipulated form of insurance, effective from the due dateof the defaulted premium, the net value of which at least equals the reserveon the policy, excluding any reserves for provisions (i) relating to benefitsfor specific types of disability, (ii) granting additional insurancespecifically against accidental death, and (iii) granting other benefits inaddition to life insurance, at the end of the last completed policy year forwhich premiums have been paid, and on any dividend additions to the policy,less a specified maximum percentage, not more than 2 1/2 percent, of themaximum face amount insured by the policy and of any dividend additions tothe policy and less any existing indebtedness to the insurer on or secured bythe policy. The policy shall specify the mortality table, rate of interestand method of valuation used for computing these reserves. The policy shallalso specify the percentage or other rule of calculation so as to permitdetermination of the values for each year for which required values are notincluded in the policy. Instead of allowing for the deduction from thereserve of a sum not more than 2 1/2 percent of the maximum face amountinsured by the policy and of any dividend additions to the policy, theinsurer may insert in the policy a provision that one-fifth of the reservemay be deducted, or may provide in the policy that a deduction may be made of2 1/2 percent of the maximum face amount insured by the policy or one-fifthof the reserve at the insurer's option.
C. If more than one option is provided, the policy shall stipulate which ofthe options shall apply if the insured fails to notify the insurer of hisselection of an option.
D. The cash surrender value referred to in § 38.2-3347 shall be availableafter premiums have been paid for ten full years upon surrender of the policyto the insurer within three months of the due date of the defaulted premiumand shall be at least equal to the sum which would otherwise be available forthe purchase of insurance. The insurer may defer payment for not more thanthree months after the application for the cash surrender value is made. Thissection shall not apply to term insurance policies of twenty years or less,but such term policy shall specify the mortality table, rate of interest andmethod of valuation adopted for computing reserves.
(Code 1950, § 38-375; 1952, c. 317, § 38.1-460; 1986, c. 562.)
A. This section shall apply only to industrial life insurance policies issuedprior to the operative date stated in § 38.2-3214.
B. The nonforfeiture benefits referred to in § 38.2-3347 shall be availablein the event of default in premium payments after premiums have been paid forfive full years, without action on the part of the insured. The nonforfeiturebenefit shall be a stipulated form of insurance, effective from the due dateof the defaulted premium, the net value of which at least equals the reserveon the policy, excluding any reserves for provisions (i) relating to benefitsfor specific types of disability, (ii) granting additional insurancespecifically against accidental death, and (iii) granting other benefits inaddition to life insurance, at the end of the last completed policy year forwhich premiums have been paid, and on any dividend additions to the policy,less a specified maximum percentage, not more than 2 1/2 percent, of themaximum face amount insured by the policy and of any dividend additions tothe policy and less any existing indebtedness to the insurer on or secured bythe policy. The policy shall specify the mortality table, rate of interestand method of valuation used for computing these reserves. The policy shallalso specify the percentage or other rule of calculation so as to permitdetermination of the values for each year for which required values are notincluded in the policy. Instead of allowing for the deduction from thereserve of a sum not more than 2 1/2 percent of the maximum face amountinsured by the policy and of any dividend additions to the policy, theinsurer may insert in the policy a provision that one-fifth of the reservemay be deducted, or may provide in the policy that a deduction may be made of2 1/2 percent of the maximum face amount insured by the policy or one-fifthof the reserve at the insurer's option.
C. If more than one option is provided, the policy shall stipulate which ofthe options shall apply if the insured fails to notify the insurer of hisselection of an option.
D. The cash surrender value referred to in § 38.2-3347 shall be availableafter premiums have been paid for ten full years upon surrender of the policyto the insurer within three months of the due date of the defaulted premiumand shall be at least equal to the sum which would otherwise be available forthe purchase of insurance. The insurer may defer payment for not more thanthree months after the application for the cash surrender value is made. Thissection shall not apply to term insurance policies of twenty years or less,but such term policy shall specify the mortality table, rate of interest andmethod of valuation adopted for computing reserves.
(Code 1950, § 38-375; 1952, c. 317, § 38.1-460; 1986, c. 562.)
A. This section shall apply only to industrial life insurance policies issuedprior to the operative date stated in § 38.2-3214.
B. The nonforfeiture benefits referred to in § 38.2-3347 shall be availablein the event of default in premium payments after premiums have been paid forfive full years, without action on the part of the insured. The nonforfeiturebenefit shall be a stipulated form of insurance, effective from the due dateof the defaulted premium, the net value of which at least equals the reserveon the policy, excluding any reserves for provisions (i) relating to benefitsfor specific types of disability, (ii) granting additional insurancespecifically against accidental death, and (iii) granting other benefits inaddition to life insurance, at the end of the last completed policy year forwhich premiums have been paid, and on any dividend additions to the policy,less a specified maximum percentage, not more than 2 1/2 percent, of themaximum face amount insured by the policy and of any dividend additions tothe policy and less any existing indebtedness to the insurer on or secured bythe policy. The policy shall specify the mortality table, rate of interestand method of valuation used for computing these reserves. The policy shallalso specify the percentage or other rule of calculation so as to permitdetermination of the values for each year for which required values are notincluded in the policy. Instead of allowing for the deduction from thereserve of a sum not more than 2 1/2 percent of the maximum face amountinsured by the policy and of any dividend additions to the policy, theinsurer may insert in the policy a provision that one-fifth of the reservemay be deducted, or may provide in the policy that a deduction may be made of2 1/2 percent of the maximum face amount insured by the policy or one-fifthof the reserve at the insurer's option.
C. If more than one option is provided, the policy shall stipulate which ofthe options shall apply if the insured fails to notify the insurer of hisselection of an option.
D. The cash surrender value referred to in § 38.2-3347 shall be availableafter premiums have been paid for ten full years upon surrender of the policyto the insurer within three months of the due date of the defaulted premiumand shall be at least equal to the sum which would otherwise be available forthe purchase of insurance. The insurer may defer payment for not more thanthree months after the application for the cash surrender value is made. Thissection shall not apply to term insurance policies of twenty years or less,but such term policy shall specify the mortality table, rate of interest andmethod of valuation adopted for computing reserves.
(Code 1950, § 38-375; 1952, c. 317, § 38.1-460; 1986, c. 562.)
