§ 38.2-3202. Standard nonforfeiture law; required policy provisions.
A. On and after the operative date stated in § 38.2-3214, no life insurancepolicy, except as stated in § 38.2-3213, shall be delivered or issued fordelivery in this Commonwealth unless it contains in substance the followingprovisions and statements, or corresponding provisions and statements that inthe opinion of the Commission (i) are at least as favorable to the defaultingor surrendering policyholder and (ii) essentially comply with § 38.2-3212:
1. That in the event of default in any premium payment, the insurer willgrant, upon proper request not later than sixty days after the due date ofthe premium in default, a paid-up nonforfeiture benefit on a plan stipulatedin the policy, effective as of the due date, in the amount specified in thisarticle. Instead of the stipulated paid-up nonforfeiture benefit, the insurermay substitute, upon proper request not later than sixty days after the duedate of the premium in default, an actuarially equivalent alternative paid-upnonforfeiture benefit that provides a greater amount or longer period ofdeath benefits or, if applicable, a greater amount or earlier payment ofendowment benefits.
2. That upon surrender of the policy within sixty days after the due date ofany premium payment in default, after premiums have been paid for at leastthree full years for ordinary insurance or five full years for industrialinsurance, the insurer will pay, instead of any paid-up nonforfeiturebenefit, a cash surrender value in the amount specified in this chapter.
3. That a specified paid-up nonforfeiture benefit shall become effective asspecified in the policy unless the person entitled to make an electionselects another available option not later than sixty days after the due dateof the premium in default.
4. That for a policy paid up by completion of all premium payments orcontinued under any paid-up nonforfeiture benefit that became effective on orafter the third policy anniversary for ordinary insurance or the fifth policyanniversary for industrial insurance, the insurer will pay, upon surrender ofthe policy within thirty days after any policy anniversary, a cash surrendervalue in the amount specified in this article.
5. For policies that provide on a basis guaranteed in the policy unscheduledchanges in benefits or premiums, or both, or that provide an option forchanges in benefits or premiums, or both, other than a change to a newpolicy, a statement of the mortality table, interest rate, and method used incalculating cash surrender values and the paid-up nonforfeiture benefitsavailable under the policy. All other policies shall include a statement ofthe mortality table and interest rate used in calculating the cash surrendervalues and the paid-up nonforfeiture benefits available under the policy,together with a table showing any cash surrender value and any paid-upnonforfeiture benefit available under the policy on each policy anniversaryeither during the first twenty policy years or during the term of the policy,whichever is shorter. The values and benefits referred to in this subdivisionshall be calculated upon the assumption that there are no dividends orpaid-up additions credited to the policy and that there is no indebtedness tothe insurer on the policy.
6. A brief and general statement of the method to be used in calculating thecash surrender value and the paid-up nonforfeiture benefits available underthe policy on any policy anniversary beyond the last anniversary for whichthe values and benefits are consecutively shown in the policy, with anexplanation of how the existence of any paid-up additions credited to thepolicy or any indebtedness to the insurer on the policy affects the cashsurrender values and the paid-up nonforfeiture benefits.
B. To the extent that any of the foregoing provisions are not applicable tothe plan of insurance, they may be omitted from the policy with the approvalof the Commission.
C. The insurer shall reserve the right to defer the payment of any cashsurrender value for no more than six months after demand for the cashsurrender value and surrender of the policy.
(Code 1950, § 38-376; 1952, c. 317, § 38.1-461; 1982, c. 228; 1986, c. 562.)
§ 38.2-3202. Standard nonforfeiture law; required policy provisions.
A. On and after the operative date stated in § 38.2-3214, no life insurancepolicy, except as stated in § 38.2-3213, shall be delivered or issued fordelivery in this Commonwealth unless it contains in substance the followingprovisions and statements, or corresponding provisions and statements that inthe opinion of the Commission (i) are at least as favorable to the defaultingor surrendering policyholder and (ii) essentially comply with § 38.2-3212:
1. That in the event of default in any premium payment, the insurer willgrant, upon proper request not later than sixty days after the due date ofthe premium in default, a paid-up nonforfeiture benefit on a plan stipulatedin the policy, effective as of the due date, in the amount specified in thisarticle. Instead of the stipulated paid-up nonforfeiture benefit, the insurermay substitute, upon proper request not later than sixty days after the duedate of the premium in default, an actuarially equivalent alternative paid-upnonforfeiture benefit that provides a greater amount or longer period ofdeath benefits or, if applicable, a greater amount or earlier payment ofendowment benefits.
2. That upon surrender of the policy within sixty days after the due date ofany premium payment in default, after premiums have been paid for at leastthree full years for ordinary insurance or five full years for industrialinsurance, the insurer will pay, instead of any paid-up nonforfeiturebenefit, a cash surrender value in the amount specified in this chapter.
3. That a specified paid-up nonforfeiture benefit shall become effective asspecified in the policy unless the person entitled to make an electionselects another available option not later than sixty days after the due dateof the premium in default.
4. That for a policy paid up by completion of all premium payments orcontinued under any paid-up nonforfeiture benefit that became effective on orafter the third policy anniversary for ordinary insurance or the fifth policyanniversary for industrial insurance, the insurer will pay, upon surrender ofthe policy within thirty days after any policy anniversary, a cash surrendervalue in the amount specified in this article.
5. For policies that provide on a basis guaranteed in the policy unscheduledchanges in benefits or premiums, or both, or that provide an option forchanges in benefits or premiums, or both, other than a change to a newpolicy, a statement of the mortality table, interest rate, and method used incalculating cash surrender values and the paid-up nonforfeiture benefitsavailable under the policy. All other policies shall include a statement ofthe mortality table and interest rate used in calculating the cash surrendervalues and the paid-up nonforfeiture benefits available under the policy,together with a table showing any cash surrender value and any paid-upnonforfeiture benefit available under the policy on each policy anniversaryeither during the first twenty policy years or during the term of the policy,whichever is shorter. The values and benefits referred to in this subdivisionshall be calculated upon the assumption that there are no dividends orpaid-up additions credited to the policy and that there is no indebtedness tothe insurer on the policy.
6. A brief and general statement of the method to be used in calculating thecash surrender value and the paid-up nonforfeiture benefits available underthe policy on any policy anniversary beyond the last anniversary for whichthe values and benefits are consecutively shown in the policy, with anexplanation of how the existence of any paid-up additions credited to thepolicy or any indebtedness to the insurer on the policy affects the cashsurrender values and the paid-up nonforfeiture benefits.
B. To the extent that any of the foregoing provisions are not applicable tothe plan of insurance, they may be omitted from the policy with the approvalof the Commission.
C. The insurer shall reserve the right to defer the payment of any cashsurrender value for no more than six months after demand for the cashsurrender value and surrender of the policy.
(Code 1950, § 38-376; 1952, c. 317, § 38.1-461; 1982, c. 228; 1986, c. 562.)
§ 38.2-3202. Standard nonforfeiture law; required policy provisions.
A. On and after the operative date stated in § 38.2-3214, no life insurancepolicy, except as stated in § 38.2-3213, shall be delivered or issued fordelivery in this Commonwealth unless it contains in substance the followingprovisions and statements, or corresponding provisions and statements that inthe opinion of the Commission (i) are at least as favorable to the defaultingor surrendering policyholder and (ii) essentially comply with § 38.2-3212:
1. That in the event of default in any premium payment, the insurer willgrant, upon proper request not later than sixty days after the due date ofthe premium in default, a paid-up nonforfeiture benefit on a plan stipulatedin the policy, effective as of the due date, in the amount specified in thisarticle. Instead of the stipulated paid-up nonforfeiture benefit, the insurermay substitute, upon proper request not later than sixty days after the duedate of the premium in default, an actuarially equivalent alternative paid-upnonforfeiture benefit that provides a greater amount or longer period ofdeath benefits or, if applicable, a greater amount or earlier payment ofendowment benefits.
2. That upon surrender of the policy within sixty days after the due date ofany premium payment in default, after premiums have been paid for at leastthree full years for ordinary insurance or five full years for industrialinsurance, the insurer will pay, instead of any paid-up nonforfeiturebenefit, a cash surrender value in the amount specified in this chapter.
3. That a specified paid-up nonforfeiture benefit shall become effective asspecified in the policy unless the person entitled to make an electionselects another available option not later than sixty days after the due dateof the premium in default.
4. That for a policy paid up by completion of all premium payments orcontinued under any paid-up nonforfeiture benefit that became effective on orafter the third policy anniversary for ordinary insurance or the fifth policyanniversary for industrial insurance, the insurer will pay, upon surrender ofthe policy within thirty days after any policy anniversary, a cash surrendervalue in the amount specified in this article.
5. For policies that provide on a basis guaranteed in the policy unscheduledchanges in benefits or premiums, or both, or that provide an option forchanges in benefits or premiums, or both, other than a change to a newpolicy, a statement of the mortality table, interest rate, and method used incalculating cash surrender values and the paid-up nonforfeiture benefitsavailable under the policy. All other policies shall include a statement ofthe mortality table and interest rate used in calculating the cash surrendervalues and the paid-up nonforfeiture benefits available under the policy,together with a table showing any cash surrender value and any paid-upnonforfeiture benefit available under the policy on each policy anniversaryeither during the first twenty policy years or during the term of the policy,whichever is shorter. The values and benefits referred to in this subdivisionshall be calculated upon the assumption that there are no dividends orpaid-up additions credited to the policy and that there is no indebtedness tothe insurer on the policy.
6. A brief and general statement of the method to be used in calculating thecash surrender value and the paid-up nonforfeiture benefits available underthe policy on any policy anniversary beyond the last anniversary for whichthe values and benefits are consecutively shown in the policy, with anexplanation of how the existence of any paid-up additions credited to thepolicy or any indebtedness to the insurer on the policy affects the cashsurrender values and the paid-up nonforfeiture benefits.
B. To the extent that any of the foregoing provisions are not applicable tothe plan of insurance, they may be omitted from the policy with the approvalof the Commission.
C. The insurer shall reserve the right to defer the payment of any cashsurrender value for no more than six months after demand for the cashsurrender value and surrender of the policy.
(Code 1950, § 38-376; 1952, c. 317, § 38.1-461; 1982, c. 228; 1986, c. 562.)
