{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3202.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3202.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3202.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3202.html"}],"law_id":57831,"edition_id":1,"section_id":57831,"structure_id":14541,"section_number":"38.2-3202","catch_line":"Standard nonforfeiture law; required policy provisions","history":"Code 1950, \u00a7 38-376; 1952, c. 317, \u00a7 38.1-461; 1982, c. 228; 1986, c. 562.","full_text":"A\n\nOn and after the operative date stated in \u00a7 38.2-3214, no life insurance policy, except as stated in \u00a7 38.2-3213, shall be delivered or issued for delivery in this Commonwealth unless it contains in substance the following provisions and statements, or corresponding provisions and statements that in the opinion of the Commission (i) are at least as favorable to the defaulting or surrendering policyholder and (ii) essentially comply with \u00a7 38.2-3212:1\n\nThat in the event of default in any premium payment, the insurer will grant, upon proper request not later than sixty days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of the due date, in the amount specified in this article. Instead of the stipulated paid-up nonforfeiture benefit, the insurer may substitute, upon proper request not later than sixty days after the due date of the premium in default, an actuarially equivalent alternative paid-up nonforfeiture benefit that provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits.2\n\nThat upon surrender of the policy within sixty days after the due date of any premium payment in default, after premiums have been paid for at least three full years for ordinary insurance or five full years for industrial insurance, the insurer will pay, instead of any paid-up nonforfeiture benefit, a cash surrender value in the amount specified in this chapter.3\n\nThat a specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make an election selects another available option not later than sixty days after the due date of the premium in default.4\n\nThat for a policy paid up by completion of all premium payments or continued under any paid-up nonforfeiture benefit that became effective on or after the third policy anniversary for ordinary insurance or the fifth policy anniversary for industrial insurance, the insurer will pay, upon surrender of the policy within thirty days after any policy anniversary, a cash surrender value in the amount specified in this article.5\n\nFor policies that provide on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or both, or that provide an option for changes in benefits or premiums, or both, other than a change to a new policy, a statement of the mortality table, interest rate, and method used in calculating cash surrender values and the paid-up nonforfeiture benefits available under the policy. All other policies shall include a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture benefits available under the policy, together with a table showing any cash surrender value and any paid-up nonforfeiture benefit available under the policy on each policy anniversary either during the first twenty policy years or during the term of the policy, whichever is shorter. The values and benefits referred to in this subdivision shall be calculated upon the assumption that there are no dividends or paid-up additions credited to the policy and that there is no indebtedness to the insurer on the policy.6\n\nA brief and general statement of the method to be used in calculating the cash surrender value and the paid-up nonforfeiture benefits available under the policy on any policy anniversary beyond the last anniversary for which the values and benefits are consecutively shown in the policy, with an explanation of how the existence of any paid-up additions credited to the policy or any indebtedness to the insurer on the policy affects the cash surrender values and the paid-up nonforfeiture benefits.B\n\nTo the extent that any of the foregoing provisions are not applicable to the plan of insurance, they may be omitted from the policy with the approval of the Commission.C\n\nThe insurer shall reserve the right to defer the payment of any cash surrender value for no more than six months after demand for the cash surrender value and surrender of the policy.","order_by":null,"text":{"0":{"id":211760,"text":"On and after the operative date stated in \u00a7 38.2-3214, no life insurance policy, except as stated in \u00a7 38.2-3213, shall be delivered or issued for delivery in this Commonwealth unless it contains in substance the following provisions and statements, or corresponding provisions and statements that in the opinion of the Commission (i) are at least as favorable to the defaulting or surrendering policyholder and (ii) essentially comply with \u00a7 38.2-3212:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":211761,"text":"That in the event of default in any premium payment, the insurer will grant, upon proper request not later than sixty days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of the due date, in the amount specified in this article. Instead of the stipulated paid-up nonforfeiture benefit, the insurer may substitute, upon proper request not later than sixty days after the due date of the premium in default, an actuarially equivalent alternative paid-up nonforfeiture benefit that provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":211762,"text":"That upon surrender of the policy within sixty days after the due date of any premium payment in default, after premiums have been paid for at least three full years for ordinary insurance or five full years for industrial insurance, the insurer will pay, instead of any paid-up nonforfeiture benefit, a cash surrender value in the amount specified in this chapter.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":211763,"text":"That a specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make an election selects another available option not later than sixty days after the due date of the premium in default.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":211764,"text":"That for a policy paid up by completion of all premium payments or continued under any paid-up nonforfeiture benefit that became effective on or after the third policy anniversary for ordinary insurance or the fifth policy anniversary for industrial insurance, the insurer will pay, upon surrender of the policy within thirty days after any policy anniversary, a cash surrender value in the amount specified in this article.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":211765,"text":"For policies that provide on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or both, or that provide an option for changes in benefits or premiums, or both, other than a change to a new policy, a statement of the mortality table, interest rate, and method used in calculating cash surrender values and the paid-up nonforfeiture benefits available under the policy. All other policies shall include a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture benefits available under the policy, together with a table showing any cash surrender value and any paid-up nonforfeiture benefit available under the policy on each policy anniversary either during the first twenty policy years or during the term of the policy, whichever is shorter. The values and benefits referred to in this subdivision shall be calculated upon the assumption that there are no dividends or paid-up additions credited to the policy and that there is no indebtedness to the insurer on the policy.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":211766,"text":"A brief and general statement of the method to be used in calculating the cash surrender value and the paid-up nonforfeiture benefits available under the policy on any policy anniversary beyond the last anniversary for which the values and benefits are consecutively shown in the policy, with an explanation of how the existence of any paid-up additions credited to the policy or any indebtedness to the insurer on the policy affects the cash surrender values and the paid-up nonforfeiture benefits.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":211767,"text":"To the extent that any of the foregoing provisions are not applicable to the plan of insurance, they may be omitted from the policy with the approval of the Commission.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"C"},"8":{"id":211768,"text":"The insurer shall reserve the right to defer the payment of any cash surrender value for no more than six months after demand for the cash surrender value and surrender of the policy.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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}],"previous_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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3202\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 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 1982, chapter 228; in 1986, chapter 562.<\/p>","references":[{"id":77891,"section_number":"38.2-3203","catch_line":"Same; cash surrender value in case of default","order_by":null,"url":"\/38.2-3203\/"},{"id":75902,"section_number":"38.2-3206","catch_line":"Same; tables used for calculations","order_by":null,"url":"\/38.2-3206\/"},{"id":59688,"section_number":"38.2-3207","catch_line":"Same; use of new mortality table; ordinary policies","order_by":null,"url":"\/38.2-3207\/"},{"id":85809,"section_number":"38.2-3208","catch_line":"Same; industrial policies","order_by":null,"url":"\/38.2-3208\/"},{"id":77084,"section_number":"38.2-3209","catch_line":"Same; adjusted premiums for policies","order_by":null,"url":"\/38.2-3209\/"},{"id":80831,"section_number":"38.2-3210","catch_line":"Same; life insurance providing future premium determination","order_by":null,"url":"\/38.2-3210\/"},{"id":60003,"section_number":"38.2-3211","catch_line":"Same; other factors in calculations","order_by":null,"url":"\/38.2-3211\/"},{"id":70462,"section_number":"38.2-3212","catch_line":"Same; policies issued on or after January 1, 1986","order_by":null,"url":"\/38.2-3212\/"},{"id":85497,"section_number":"38.2-3213","catch_line":"Same; exemptions from application of certain sections","order_by":null,"url":"\/38.2-3213\/"},{"id":60385,"section_number":"38.2-3214","catch_line":"Same; operative date","order_by":null,"url":"\/38.2-3214\/"},{"id":55994,"section_number":"38.2-3218","catch_line":"Same; in policies subsequently issued","order_by":null,"url":"\/38.2-3218\/"},{"id":71365,"section_number":"38.2-3347","catch_line":"Nonforfeiture benefits and cash surrender values","order_by":null,"url":"\/38.2-3347\/"}],"refers_to":[{"id":85497,"section_number":"38.2-3213","catch_line":"Same; exemptions from application of certain sections","order_by":null,"url":"\/38.2-3213\/"},{"id":60385,"section_number":"38.2-3214","catch_line":"Same; operative date","order_by":null,"url":"\/38.2-3214\/"}],"permalink":{"id":214515,"object_type":"law","relational_id":57831,"identifier":"38.2-3202","token":"38.2\/32\/38.2-3202","url":"\/38.2-3202\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3202\/","token":"38.2\/32\/38.2-3202","dublin_core":{"Title":"Standard nonforfeiture law; required policy provisions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3202","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> On and after the operative date stated in \u00a7 38.2-3214<\/a>, no life insurance<\/span> policy, except as stated in \u00a7 38.2-3213<\/a>, shall be delivered or issued for delivery in this Commonwealth unless it contains in substance the following provisions and statements, or corresponding provisions and statements that in the opinion<\/span> of the Commission<\/span> (i) are at least as favorable to the defaulting or surrendering policyholder and (ii) essentially comply with \u00a7 38.2-3212<\/a>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> That in the event of default<\/span> in any premium payment, the insurer<\/span> will grant, upon proper request not later than sixty days after the due date of the premium in default<\/span>, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of the due date, in the amount specified in this article. Instead of the stipulated paid-up nonforfeiture benefit, the insurer<\/span> may substitute, upon proper request not later than sixty days after the due date of the premium in default<\/span>, an actuarially equivalent alternative paid-up nonforfeiture benefit that provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> That upon surrender of the policy within sixty days after the due date of any premium payment in default<\/span>, after premiums have been paid for at least three full years for ordinary insurance<\/span> or five full years for industrial insurance<\/span>, the insurer<\/span> will pay, instead of any paid-up nonforfeiture benefit, a cash surrender value in the amount specified in this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> That a specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person<\/span> entitled to make an election selects another available option not later than sixty days after the due date of the premium in default<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> That for a policy paid up by completion of all premium payments or continued under any paid-up nonforfeiture benefit that became effective on or after the third policy anniversary for ordinary insurance<\/span> or the fifth policy anniversary for industrial insurance<\/span>, the insurer<\/span> will pay, upon surrender of the policy within thirty days after any policy anniversary, a cash surrender value in the amount specified in this article. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> For policies that provide on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or both, or that provide an option for changes in benefits or premiums, or both, other than a change to a new policy, a statement of the mortality table, interest rate<\/span>, and method used in calculating cash surrender values and the paid-up nonforfeiture benefits available under the policy. All other policies shall include a statement of the mortality table and interest rate<\/span> used in calculating the cash surrender values and the paid-up nonforfeiture benefits available under the policy, together with a table showing any cash surrender value and any paid-up nonforfeiture benefit available under the policy on each policy anniversary either during the first twenty policy years or during the term of the policy, whichever is shorter. The values and benefits referred to in this subdivision shall be calculated upon the assumption that there are no dividends or paid-up additions credited to the policy and that there is no indebtedness to the insurer<\/span> on the policy. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A brief<\/span> and general statement of the method to be used in calculating the cash surrender value and the paid-up nonforfeiture benefits available under the policy on any policy anniversary beyond the last anniversary for which the values and benefits are consecutively shown in the policy, with an explanation of how the existence of any paid-up additions credited to the policy or any indebtedness to the insurer<\/span> on the policy affects the cash surrender values and the paid-up nonforfeiture benefits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> To the extent that any of the foregoing provisions are not applicable to the plan of insurance<\/span>, they may be omitted from the policy with the approval of the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The insurer<\/span> shall reserve the right to defer the payment of any cash surrender value for no more than six months after demand for the cash surrender value and surrender of the policy. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSTANDARD NONFORFEITURE LAW; REQUIRED POLICY PROVISIONS (\u00a7 38.2-3202)\n\nA. On and after the operative date stated in \u00a7 38.2-3214, no life insurance\npolicy, except as stated in \u00a7 38.2-3213, shall be delivered or issued for\ndelivery in this Commonwealth unless it contains in substance the following\nprovisions and statements, or corresponding provisions and statements that in\nthe opinion of the Commission (i) are at least as favorable to the defaulting or\nsurrendering policyholder and (ii) essentially comply with \u00a7 38.2-3212:\n\n 1. That in the event of default in any premium payment, the insurer will\n grant, upon proper request not later than sixty days after the due date of the\n premium in default, a paid-up nonforfeiture benefit on a plan stipulated in\n the policy, effective as of the due date, in the amount specified in this\n article. Instead of the stipulated paid-up nonforfeiture benefit, the insurer\n may substitute, upon proper request not later than sixty days after the due\n date of the premium in default, an actuarially equivalent alternative paid-up\n nonforfeiture benefit that provides a greater amount or longer period of death\n benefits or, if applicable, a greater amount or earlier payment of endowment\n benefits.\n\n 2. That upon surrender of the policy within sixty days after the due date of\n any premium payment in default, after premiums have been paid for at least\n three full years for ordinary insurance or five full years for industrial\n insurance, the insurer will pay, instead of any paid-up nonforfeiture benefit,\n a cash surrender value in the amount specified in this chapter.\n\n 3. That a specified paid-up nonforfeiture benefit shall become effective as\n specified in the policy unless the person entitled to make an election selects\n another available option not later than sixty days after the due date of the\n premium in default.\n\n 4. That for a policy paid up by completion of all premium payments or\n continued under any paid-up nonforfeiture benefit that became effective on or\n after the third policy anniversary for ordinary insurance or the fifth policy\n anniversary for industrial insurance, the insurer will pay, upon surrender of\n the policy within thirty days after any policy anniversary, a cash surrender\n value in the amount specified in this article.\n\n 5. For policies that provide on a basis guaranteed in the policy unscheduled\n changes in benefits or premiums, or both, or that provide an option for\n changes in benefits or premiums, or both, other than a change to a new policy,\n a statement of the mortality table, interest rate, and method used in\n calculating cash surrender values and the paid-up nonforfeiture benefits\n available under the policy. All other policies shall include a statement of\n the mortality table and interest rate used in calculating the cash surrender\n values and the paid-up nonforfeiture benefits available under the policy,\n together with a table showing any cash surrender value and any paid-up\n nonforfeiture benefit available under the policy on each policy anniversary\n either during the first twenty policy years or during the term of the policy,\n whichever is shorter. The values and benefits referred to in this subdivision\n shall be calculated upon the assumption that there are no dividends or paid-up\n additions credited to the policy and that there is no indebtedness to the\n insurer on the policy.\n\n 6. A brief and general statement of the method to be used in calculating the\n cash surrender value and the paid-up nonforfeiture benefits available under\n the policy on any policy anniversary beyond the last anniversary for which the\n values and benefits are consecutively shown in the policy, with an explanation\n of how the existence of any paid-up additions credited to the policy or any\n indebtedness to the insurer on the policy affects the cash surrender values\n and the paid-up nonforfeiture benefits.\n\nB. To the extent that any of the foregoing provisions are not applicable to the\nplan of insurance, they may be omitted from the policy with the approval of the\nCommission.\n\nC. The insurer shall reserve the right to defer the payment of any cash\nsurrender value for no more than six months after demand for the cash surrender\nvalue and surrender of the policy.\n\nHISTORY: Code 1950, \u00a7 38-376; 1952, c. 317, \u00a7 38.1-461; 1982, c. 228; 1986, c.\n562.","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}}