{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3200.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3200.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3200.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3200.html"}],"law_id":78309,"edition_id":1,"section_id":78309,"structure_id":14541,"section_number":"38.2-3200","catch_line":"Nonforfeiture benefits and cash surrender values in life policies issued prior to operative date stated in \u00a7 38.2-3214","history":"Code 1950, \u00a7 38-374; 1952, c. 317, \u00a7 38.1-459; 1986, c. 562.","full_text":"A\n\nThis section shall apply only to life insurance policies issued prior to the operative date stated in § 38.2-3214.B\n\nThe nonforfeiture benefit referred to in § 38.2-3309 shall be available to the insured in the event of default in premium payments, after premiums have been paid for three full years. The premium paid for the insured under any policy provision shall not be considered in default. The nonforfeiture benefit shall be a stipulated form of insurance, effective from the due date of the defaulted premium, the net value of which shall at least equal the reserve at the date of default on the policy and on any dividend additions to the policy, exclusive of the reserve on account of return premium insurance and on total and permanent disability and additional accidental death benefits, less a sum not more than 2 1\/2 percent of the amount insured by the policy and of any dividend additions to the policy and less any existing indebtedness to the insurer on or secured by the policy. The policy shall specify the mortality table and rate of interest used in computing these reserves. Instead of allowing a deduction from the reserve of a sum not more than 2 1\/2 percent of the amount insured by the policy, and of any dividend additions to the policy, the insurer may insert in the policy a provision that one-fifth of the reserve may be deducted, or may provide in the policy that a deduction may be made of 2 1\/2 percent of the amount insured by the policy or one-fifth of the reserve, at the insurer’s option. The cash surrender value referred to in § 38.2-3309 shall be available upon surrender of the policy to the insurer within one month of the due date of the defaulted premium and shall at least equal the sum which would otherwise be available for the purchase of insurance. The insurer may defer payment for not more than three months after the application for the cash surrender value is made.C\n\nIf more than one option is provided, the policy shall stipulate which of the options shall be effective if the insured does not elect any option on or before the expiration of the grace period allowed for the payment of the premium.D\n\nA provision may also be inserted in the policy that in the event of default in a premium payment before the options become available, the reserve on any dividend additions then in force may, at the insurer’s option, be paid in cash or applied as a net premium to the purchase of paid-up term insurance for any amount not exceeding the face amount of the original policy.E\n\nThis section shall apply to term insurance policies only if the term is for more than twenty years.","order_by":null,"text":{"0":{"id":280711,"text":"This section shall apply only to life insurance policies issued prior to the operative date stated in § 38.2-3214.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":280712,"text":"The nonforfeiture benefit referred to in § 38.2-3309 shall be available to the insured in the event of default in premium payments, after premiums have been paid for three full years. The premium paid for the insured under any policy provision shall not be considered in default. The nonforfeiture benefit shall be a stipulated form of insurance, effective from the due date of the defaulted premium, the net value of which shall at least equal the reserve at the date of default on the policy and on any dividend additions to the policy, exclusive of the reserve on account of return premium insurance and on total and permanent disability and additional accidental death benefits, less a sum not more than 2 1\/2 percent of the amount insured by the policy and of any dividend additions to the policy and less any existing indebtedness to the insurer on or secured by the policy. The policy shall specify the mortality table and rate of interest used in computing these reserves. Instead of allowing a deduction from the reserve of a sum not more than 2 1\/2 percent of the amount insured by the policy, and of any dividend additions to the policy, the insurer may insert in the policy a provision that one-fifth of the reserve may be deducted, or may provide in the policy that a deduction may be made of 2 1\/2 percent of the amount insured by the policy or one-fifth of the reserve, at the insurer’s option. The cash surrender value referred to in § 38.2-3309 shall be available upon surrender of the policy to the insurer within one month of the due date of the defaulted premium and shall at least equal the sum which would otherwise be available for the purchase of insurance. The insurer may defer payment for not more than three months after the application for the cash surrender value is made.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":280713,"text":"If more than one option is provided, the policy shall stipulate which of the options shall be effective if the insured does not elect any option on or before the expiration of the grace period allowed for the payment of the premium.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":280714,"text":"A provision may also be inserted in the policy that in the event of default in a premium payment before the options become available, the reserve on any dividend additions then in force may, at the insurer’s option, be paid in cash or applied as a net premium to the purchase of paid-up term insurance for any amount not exceeding the face amount of the original policy.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":280715,"text":"This section shall apply to term insurance policies only if the term is for more than twenty years.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14541,"edition_id":1,"name":"Standard Nonforfeiture Provisions for Life Insurance","identifier":"32","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:48:35","date_modified":"2026-06-26 03:48:35","permalink":{"id":214505,"object_type":"structure","relational_id":14541,"identifier":"32","token":"38.2\/32","url":"\/38.2\/32\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78309,"structure_id":14541,"section_number":"38.2-3200","catch_line":"Nonforfeiture benefits and cash surrender values in life policies issued prior to operative date stated in \u00a7 38.2-3214","url":"\/38.2-3200\/","token":"38.2\/32\/38.2-3200","metadata":false},{"id":71133,"structure_id":14541,"section_number":"38.2-3201","catch_line":"Same; for industrial life policies","url":"\/38.2-3201\/","token":"38.2\/32\/38.2-3201","metadata":false},{"id":57831,"structure_id":14541,"section_number":"38.2-3202","catch_line":"Standard nonforfeiture law; required policy provisions","url":"\/38.2-3202\/","token":"38.2\/32\/38.2-3202","metadata":false},{"id":77891,"structure_id":14541,"section_number":"38.2-3203","catch_line":"Same; cash surrender value in case of default","url":"\/38.2-3203\/","token":"38.2\/32\/38.2-3203","metadata":false},{"id":79190,"structure_id":14541,"section_number":"38.2-3204","catch_line":"Same; present value of paid-up nonforfeiture benefits on default","url":"\/38.2-3204\/","token":"38.2\/32\/38.2-3204","metadata":false},{"id":61365,"structure_id":14541,"section_number":"38.2-3205","catch_line":"Same; calculation of adjusted premiums","url":"\/38.2-3205\/","token":"38.2\/32\/38.2-3205","metadata":false},{"id":75902,"structure_id":14541,"section_number":"38.2-3206","catch_line":"Same; tables used for calculations","url":"\/38.2-3206\/","token":"38.2\/32\/38.2-3206","metadata":false},{"id":59688,"structure_id":14541,"section_number":"38.2-3207","catch_line":"Same; use of new mortality table; ordinary policies","url":"\/38.2-3207\/","token":"38.2\/32\/38.2-3207","metadata":false},{"id":85809,"structure_id":14541,"section_number":"38.2-3208","catch_line":"Same; industrial policies","url":"\/38.2-3208\/","token":"38.2\/32\/38.2-3208","metadata":false},{"id":77084,"structure_id":14541,"section_number":"38.2-3209","catch_line":"Same; adjusted premiums for policies","url":"\/38.2-3209\/","token":"38.2\/32\/38.2-3209","metadata":false},{"id":80831,"structure_id":14541,"section_number":"38.2-3210","catch_line":"Same; life insurance providing future premium determination","url":"\/38.2-3210\/","token":"38.2\/32\/38.2-3210","metadata":false},{"id":60003,"structure_id":14541,"section_number":"38.2-3211","catch_line":"Same; other factors in calculations","url":"\/38.2-3211\/","token":"38.2\/32\/38.2-3211","metadata":false},{"id":70462,"structure_id":14541,"section_number":"38.2-3212","catch_line":"Same; policies issued on or after January 1, 1986","url":"\/38.2-3212\/","token":"38.2\/32\/38.2-3212","metadata":false},{"id":85497,"structure_id":14541,"section_number":"38.2-3213","catch_line":"Same; exemptions from application of certain sections","url":"\/38.2-3213\/","token":"38.2\/32\/38.2-3213","metadata":false},{"id":60385,"structure_id":14541,"section_number":"38.2-3214","catch_line":"Same; operative date","url":"\/38.2-3214\/","token":"38.2\/32\/38.2-3214","metadata":false},{"id":59064,"structure_id":14541,"section_number":"38.2-3215","catch_line":"Same; operative date for \u00a7 38.2-3207","url":"\/38.2-3215\/","token":"38.2\/32\/38.2-3215","metadata":false},{"id":68021,"structure_id":14541,"section_number":"38.2-3216","catch_line":"Same; operative date for \u00a7 38.2-3208","url":"\/38.2-3216\/","token":"38.2\/32\/38.2-3216","metadata":false},{"id":84594,"structure_id":14541,"section_number":"38.2-3217","catch_line":"Loan provisions in policies issued prior to operative date stated in \u00a7 38.2-3214","url":"\/38.2-3217\/","token":"38.2\/32\/38.2-3217","metadata":false},{"id":55994,"structure_id":14541,"section_number":"38.2-3218","catch_line":"Same; in policies subsequently issued","url":"\/38.2-3218\/","token":"38.2\/32\/38.2-3218","metadata":false},{"id":85068,"structure_id":14541,"section_number":"38.2-3219","catch_line":"Applicability","url":"\/38.2-3219\/","token":"38.2\/32\/38.2-3219","metadata":false},{"id":73664,"structure_id":14541,"section_number":"38.2-3220","catch_line":"Nonforfeiture requirements","url":"\/38.2-3220\/","token":"38.2\/32\/38.2-3220","metadata":false},{"id":64780,"structure_id":14541,"section_number":"38.2-3221","catch_line":"Minimum values","url":"\/38.2-3221\/","token":"38.2\/32\/38.2-3221","metadata":false},{"id":74981,"structure_id":14541,"section_number":"38.2-3222","catch_line":"Computation of present value","url":"\/38.2-3222\/","token":"38.2\/32\/38.2-3222","metadata":false},{"id":85744,"structure_id":14541,"section_number":"38.2-3223","catch_line":"Calculation of cash surrender values","url":"\/38.2-3223\/","token":"38.2\/32\/38.2-3223","metadata":false},{"id":84416,"structure_id":14541,"section_number":"38.2-3224","catch_line":"Calculation of paid-up annuity benefits","url":"\/38.2-3224\/","token":"38.2\/32\/38.2-3224","metadata":false},{"id":75346,"structure_id":14541,"section_number":"38.2-3225","catch_line":"Maturity date","url":"\/38.2-3225\/","token":"38.2\/32\/38.2-3225","metadata":false},{"id":78619,"structure_id":14541,"section_number":"38.2-3226","catch_line":"Disclosure of limited death benefits","url":"\/38.2-3226\/","token":"38.2\/32\/38.2-3226","metadata":false},{"id":80588,"structure_id":14541,"section_number":"38.2-3227","catch_line":"Inclusion of lapse of time considerations","url":"\/38.2-3227\/","token":"38.2\/32\/38.2-3227","metadata":false},{"id":64270,"structure_id":14541,"section_number":"38.2-3228","catch_line":"Proration of values; additional benefits","url":"\/38.2-3228\/","token":"38.2\/32\/38.2-3228","metadata":false},{"id":66707,"structure_id":14541,"section_number":"38.2-3229","catch_line":"Effective date","url":"\/38.2-3229\/","token":"38.2\/32\/38.2-3229","metadata":false}],"next_section":{"id":71133,"structure_id":14541,"section_number":"38.2-3201","catch_line":"Same; for industrial life policies","url":"\/38.2-3201\/","token":"38.2\/32\/38.2-3201","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3200\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1986, chapter 562.<\/p>","references":false,"refers_to":[{"id":80287,"section_number":"38.2-3309","catch_line":"Nonforfeiture benefits and cash surrender values","order_by":null,"url":"\/38.2-3309\/"}],"permalink":{"id":214507,"object_type":"law","relational_id":78309,"identifier":"38.2-3200","token":"38.2\/32\/38.2-3200","url":"\/38.2-3200\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3200\/","token":"38.2\/32\/38.2-3200","dublin_core":{"Title":"Nonforfeiture benefits and cash surrender values in life policies issued prior to operative date stated in \u00a7 38.2-3214","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3200","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> This section shall apply only to life insurance policies<\/span> issued prior to the operative date stated in § 38.2-3214<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The nonforfeiture benefit referred to in § 38.2-3309<\/a> shall be available to the insured in the event of default<\/span> in premium payments, after premiums have been paid for three full years. The premium paid for the insured under any policy provision shall not be considered in default<\/span>. The nonforfeiture benefit shall be a stipulated form of insurance, effective from the due date of the defaulted premium, the net value of which shall at least equal the reserve at the date of default<\/span> on the policy and on any dividend additions to the policy, exclusive of the reserve on account of return premium insurance and on total and permanent disability and additional accidental death benefits, less a sum not more than 2 1\/2 percent of the amount insured by the policy and of any dividend additions to the policy and less any existing indebtedness to the insurer<\/span> on or secured by the policy. The policy shall specify the mortality table and rate<\/span> of interest used in computing these reserves. Instead of allowing a deduction from the reserve of a sum not more than 2 1\/2 percent of the amount insured by the policy, and of any dividend additions to the policy, the insurer<\/span> may insert in the policy a provision that one-fifth of the reserve may be deducted, or may provide in the policy that a deduction may be made of 2 1\/2 percent of the amount insured by the policy or one-fifth of the reserve, at the insurer<\/span>’s option. The cash surrender value referred to in § 38.2-3309<\/a> shall be available upon surrender of the policy to the insurer<\/span> within one month of the due date of the defaulted premium and shall at least equal the sum which would otherwise be available for the purchase of insurance. The insurer<\/span> may defer payment for not more than three months after the application for the cash surrender value is made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If more than one option is provided, the policy shall stipulate which of the options shall be effective if the insured does not elect any option on or before the expiration of the grace period allowed for the payment of the premium. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A provision may also be inserted in the policy that in the event of default<\/span> in a premium payment before the options become available, the reserve on any dividend additions then in force may, at the insurer<\/span>’s option, be paid in cash or applied as a net premium to the purchase of paid-up term insurance for any amount not exceeding the face amount of the original policy. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> This section shall apply to term insurance policies<\/span> only if the term is for more than twenty years. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNONFORFEITURE BENEFITS AND CASH SURRENDER VALUES IN LIFE POLICIES ISSUED PRIOR\nTO OPERATIVE DATE STATED IN \u00a7 38.2-3214 (\u00a7 38.2-3200)\n\nA. This section shall apply only to life insurance policies issued prior to the\noperative date stated in § 38.2-3214.\n\nB. The nonforfeiture benefit referred to in § 38.2-3309 shall be available\nto the insured in the event of default in premium payments, after premiums have\nbeen paid for three full years. The premium paid for the insured under any\npolicy provision shall not be considered in default. The nonforfeiture benefit\nshall be a stipulated form of insurance, effective from the due date of the\ndefaulted premium, the net value of which shall at least equal the reserve at\nthe date of default on the policy and on any dividend additions to the policy,\nexclusive of the reserve on account of return premium insurance and on total and\npermanent disability and additional accidental death benefits, less a sum not\nmore than 2 1\/2 percent of the amount insured by the policy and of any dividend\nadditions to the policy and less any existing indebtedness to the insurer on or\nsecured by the policy. The policy shall specify the mortality table and rate of\ninterest used in computing these reserves. Instead of allowing a deduction from\nthe reserve of a sum not more than 2 1\/2 percent of the amount insured by the\npolicy, and of any dividend additions to the policy, the insurer may insert in\nthe policy a provision that one-fifth of the reserve may be deducted, or may\nprovide in the policy that a deduction may be made of 2 1\/2 percent of the\namount insured by the policy or one-fifth of the reserve, at the insurer’s\noption. The cash surrender value referred to in § 38.2-3309 shall be\navailable upon surrender of the policy to the insurer within one month of the\ndue date of the defaulted premium and shall at least equal the sum which would\notherwise be available for the purchase of insurance. The insurer may defer\npayment for not more than three months after the application for the cash\nsurrender value is made.\n\nC. If more than one option is provided, the policy shall stipulate which of the\noptions shall be effective if the insured does not elect any option on or before\nthe expiration of the grace period allowed for the payment of the premium.\n\nD. A provision may also be inserted in the policy that in the event of default\nin a premium payment before the options become available, the reserve on any\ndividend additions then in force may, at the insurer’s option, be paid in\ncash or applied as a net premium to the purchase of paid-up term insurance for\nany amount not exceeding the face amount of the original policy.\n\nE. This section shall apply to term insurance policies only if the term is for\nmore than twenty years.\n\nHISTORY: Code 1950, \u00a7 38-374; 1952, c. 317, \u00a7 38.1-459; 1986, c. 562.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}