A. Every society authorized to do business in this Commonwealth shall issueto each owner of a benefit contract a certificate specifying the amount ofbenefits provided thereby. The certificate, together with any attachedriders or endorsements, the laws of the society, the application formembership, the application for insurance and declaration of insurability, ifany, signed by the applicant, and all amendments to each, shall constitutethe benefit contract, as of the date of issuance, between the society and theowner, and the certificate shall so state. A copy of the application forinsurance and declaration of insurability, if any, shall be endorsed upon orattached to the certificate. All statements on the application shall berepresentations and not warranties. Any waiver of this provision shall bevoid.
B. Any changes, additions or amendments to the laws of the society duly madeor enacted subsequent to the issuance of the certificate, shall bind theowner and the beneficiaries, and shall govern and control the benefitcontract in all respects the same as though such changes, additions oramendments had been made prior to and were in force at the time of theapplication for insurance, except that no change, addition or amendment shalldestroy or diminish benefits which the society contracted to give the owneras of the date of issuance.
C. Any person upon whose life a benefit contract is issued prior to attainingthe age of majority shall be bound by the terms of the application andcertificate and by all the laws and rules of the society to the same extentas though the age of majority had been attained at the time of application.
D. A society shall provide in its laws that if its reserves as to all or anyclass of certificates become impaired, its board of directors orcorresponding body may require that the owner shall pay to the society hisequitable proportion of such deficiency as ascertained by its board, and thatif the payment is not made, either (i) it shall stand as an indebtednessagainst the certificate and draw interest not to exceed the rate specifiedfor certificate loans under the certificates; or (ii) in lieu of or incombination with (i), the owner may accept a proportionate reduction inbenefits under the certificate. The society may specify the manner of theelection and which alternative is to be presumed if no election is made.
E. Copies of any documents mentioned in this section, certified by thesecretary or corresponding officer of the society, shall be received inevidence of the terms and conditions thereof.
F. No certificate shall be delivered or issued for delivery in thisCommonwealth unless a copy of the form has been filed with and approved bythe Commission in the manner provided for in § 38.2-316. Every life,accident, health, or disability insurance certificate and every annuitycertificate issued on or after July 1, 1986, shall meet the standard contractprovision requirements not inconsistent with this chapter for like policiesissued by life insurers in this Commonwealth, except that a society mayprovide for a grace period for payment of premiums of one full month in itscertificates. The certificate shall also contain a provision stating theamount of premiums which are payable under the certificate and a provisionreciting or setting forth the substance of any sections of the society's lawsor rules in force at the time of issuance of the certificate which, ifviolated, will result in the termination or reduction of benefits payableunder the certificate. If the laws of the society provide for expulsion orsuspension of a member, the certificate shall also contain a provision thatany member so expelled or suspended, except for nonpayment of a premium orwithin the contestable period for material misrepresentation in theapplication for membership or insurance, shall have the privilege ofmaintaining the certificate in force by continuing payment of the requiredpremium.
G. Benefit contracts issued on the lives of persons below the society'sminimum age for adult membership may provide for transfer of control orownership to the insured at an age specified in the certificate. A societymay require approval of an application for membership in order to effect thistransfer, and may provide in all other respects for the regulation,government and control of such certificates and all rights, obligations andliabilities incident thereto. Ownership rights prior to such transfer shallbe specified in the certificate.
H. A society may specify the terms and conditions on which benefit contractsmay be assigned.
(Code 1950, §§ 38-280, 38-282, 38-286, 38-293, 38.1-596, 38.1-598, 38.1-602,38.1-609; 1952, c. 317, §§ 38.1-638.28 through 38.1-638.30, 38.1-638.35;1964, c. 355; 1968, c. 654; 1972, cc. 530, 825; 1986, c. 562.)
A. Every society authorized to do business in this Commonwealth shall issueto each owner of a benefit contract a certificate specifying the amount ofbenefits provided thereby. The certificate, together with any attachedriders or endorsements, the laws of the society, the application formembership, the application for insurance and declaration of insurability, ifany, signed by the applicant, and all amendments to each, shall constitutethe benefit contract, as of the date of issuance, between the society and theowner, and the certificate shall so state. A copy of the application forinsurance and declaration of insurability, if any, shall be endorsed upon orattached to the certificate. All statements on the application shall berepresentations and not warranties. Any waiver of this provision shall bevoid.
B. Any changes, additions or amendments to the laws of the society duly madeor enacted subsequent to the issuance of the certificate, shall bind theowner and the beneficiaries, and shall govern and control the benefitcontract in all respects the same as though such changes, additions oramendments had been made prior to and were in force at the time of theapplication for insurance, except that no change, addition or amendment shalldestroy or diminish benefits which the society contracted to give the owneras of the date of issuance.
C. Any person upon whose life a benefit contract is issued prior to attainingthe age of majority shall be bound by the terms of the application andcertificate and by all the laws and rules of the society to the same extentas though the age of majority had been attained at the time of application.
D. A society shall provide in its laws that if its reserves as to all or anyclass of certificates become impaired, its board of directors orcorresponding body may require that the owner shall pay to the society hisequitable proportion of such deficiency as ascertained by its board, and thatif the payment is not made, either (i) it shall stand as an indebtednessagainst the certificate and draw interest not to exceed the rate specifiedfor certificate loans under the certificates; or (ii) in lieu of or incombination with (i), the owner may accept a proportionate reduction inbenefits under the certificate. The society may specify the manner of theelection and which alternative is to be presumed if no election is made.
E. Copies of any documents mentioned in this section, certified by thesecretary or corresponding officer of the society, shall be received inevidence of the terms and conditions thereof.
F. No certificate shall be delivered or issued for delivery in thisCommonwealth unless a copy of the form has been filed with and approved bythe Commission in the manner provided for in § 38.2-316. Every life,accident, health, or disability insurance certificate and every annuitycertificate issued on or after July 1, 1986, shall meet the standard contractprovision requirements not inconsistent with this chapter for like policiesissued by life insurers in this Commonwealth, except that a society mayprovide for a grace period for payment of premiums of one full month in itscertificates. The certificate shall also contain a provision stating theamount of premiums which are payable under the certificate and a provisionreciting or setting forth the substance of any sections of the society's lawsor rules in force at the time of issuance of the certificate which, ifviolated, will result in the termination or reduction of benefits payableunder the certificate. If the laws of the society provide for expulsion orsuspension of a member, the certificate shall also contain a provision thatany member so expelled or suspended, except for nonpayment of a premium orwithin the contestable period for material misrepresentation in theapplication for membership or insurance, shall have the privilege ofmaintaining the certificate in force by continuing payment of the requiredpremium.
G. Benefit contracts issued on the lives of persons below the society'sminimum age for adult membership may provide for transfer of control orownership to the insured at an age specified in the certificate. A societymay require approval of an application for membership in order to effect thistransfer, and may provide in all other respects for the regulation,government and control of such certificates and all rights, obligations andliabilities incident thereto. Ownership rights prior to such transfer shallbe specified in the certificate.
H. A society may specify the terms and conditions on which benefit contractsmay be assigned.
(Code 1950, §§ 38-280, 38-282, 38-286, 38-293, 38.1-596, 38.1-598, 38.1-602,38.1-609; 1952, c. 317, §§ 38.1-638.28 through 38.1-638.30, 38.1-638.35;1964, c. 355; 1968, c. 654; 1972, cc. 530, 825; 1986, c. 562.)
A. Every society authorized to do business in this Commonwealth shall issueto each owner of a benefit contract a certificate specifying the amount ofbenefits provided thereby. The certificate, together with any attachedriders or endorsements, the laws of the society, the application formembership, the application for insurance and declaration of insurability, ifany, signed by the applicant, and all amendments to each, shall constitutethe benefit contract, as of the date of issuance, between the society and theowner, and the certificate shall so state. A copy of the application forinsurance and declaration of insurability, if any, shall be endorsed upon orattached to the certificate. All statements on the application shall berepresentations and not warranties. Any waiver of this provision shall bevoid.
B. Any changes, additions or amendments to the laws of the society duly madeor enacted subsequent to the issuance of the certificate, shall bind theowner and the beneficiaries, and shall govern and control the benefitcontract in all respects the same as though such changes, additions oramendments had been made prior to and were in force at the time of theapplication for insurance, except that no change, addition or amendment shalldestroy or diminish benefits which the society contracted to give the owneras of the date of issuance.
C. Any person upon whose life a benefit contract is issued prior to attainingthe age of majority shall be bound by the terms of the application andcertificate and by all the laws and rules of the society to the same extentas though the age of majority had been attained at the time of application.
D. A society shall provide in its laws that if its reserves as to all or anyclass of certificates become impaired, its board of directors orcorresponding body may require that the owner shall pay to the society hisequitable proportion of such deficiency as ascertained by its board, and thatif the payment is not made, either (i) it shall stand as an indebtednessagainst the certificate and draw interest not to exceed the rate specifiedfor certificate loans under the certificates; or (ii) in lieu of or incombination with (i), the owner may accept a proportionate reduction inbenefits under the certificate. The society may specify the manner of theelection and which alternative is to be presumed if no election is made.
E. Copies of any documents mentioned in this section, certified by thesecretary or corresponding officer of the society, shall be received inevidence of the terms and conditions thereof.
F. No certificate shall be delivered or issued for delivery in thisCommonwealth unless a copy of the form has been filed with and approved bythe Commission in the manner provided for in § 38.2-316. Every life,accident, health, or disability insurance certificate and every annuitycertificate issued on or after July 1, 1986, shall meet the standard contractprovision requirements not inconsistent with this chapter for like policiesissued by life insurers in this Commonwealth, except that a society mayprovide for a grace period for payment of premiums of one full month in itscertificates. The certificate shall also contain a provision stating theamount of premiums which are payable under the certificate and a provisionreciting or setting forth the substance of any sections of the society's lawsor rules in force at the time of issuance of the certificate which, ifviolated, will result in the termination or reduction of benefits payableunder the certificate. If the laws of the society provide for expulsion orsuspension of a member, the certificate shall also contain a provision thatany member so expelled or suspended, except for nonpayment of a premium orwithin the contestable period for material misrepresentation in theapplication for membership or insurance, shall have the privilege ofmaintaining the certificate in force by continuing payment of the requiredpremium.
G. Benefit contracts issued on the lives of persons below the society'sminimum age for adult membership may provide for transfer of control orownership to the insured at an age specified in the certificate. A societymay require approval of an application for membership in order to effect thistransfer, and may provide in all other respects for the regulation,government and control of such certificates and all rights, obligations andliabilities incident thereto. Ownership rights prior to such transfer shallbe specified in the certificate.
H. A society may specify the terms and conditions on which benefit contractsmay be assigned.
(Code 1950, §§ 38-280, 38-282, 38-286, 38-293, 38.1-596, 38.1-598, 38.1-602,38.1-609; 1952, c. 317, §§ 38.1-638.28 through 38.1-638.30, 38.1-638.35;1964, c. 355; 1968, c. 654; 1972, cc. 530, 825; 1986, c. 562.)
