{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3205.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3205.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3205.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3205.html"}],"law_id":61365,"edition_id":1,"section_id":61365,"structure_id":14541,"section_number":"38.2-3205","catch_line":"Same; calculation of adjusted premiums","history":"Code 1950, \u00a7 38-379; 1952, c. 317, \u00a7 38.1-464; 1962, c. 562; 1982, c. 228; 1986, c. 562.","full_text":"A\n\nThe provisions of this section shall not apply to policies issued on or after the operative date as defined in § 38.2-3209. Except as provided in subsection C of this section, the adjusted premium for any life insurance policy issued on or after the operative date stated in § 38.2-3214 shall be calculated on an annual basis and shall be a uniform percentage of the respective premiums specified in the policy for each policy year, excluding any extra premiums charged because of impairments or special hazards, so that the present value at the date of issue of the policy of all adjusted premiums is equal to the sum of: (i) the then present value of the future guaranteed benefits provided for by the policy; (ii) two percent of the amount of insurance, if the insurance is uniform in amount, or of the equivalent uniform amount as defined in subsection B of this section if the amount of insurance varies with the duration of the policy; (iii) forty percent of the adjusted premium for the first policy year; and (iv) twenty-five percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance, whichever is less. However, in applying the percentages specified in (iii) and (iv) of this subsection, no adjusted premium shall be deemed to exceed four percent of the amount of insurance or level amount equivalent to the amount of insurance. The date of issue of a policy for the purpose of this section shall be the date as of which the rated age of the insured is determined.B\n\nThe equivalent uniform amount of a policy providing an amount of insurance varying with the duration of the policy is the level amount of insurance provided by an otherwise similar policy, containing the same endowment benefit or benefits, if any, issued at the same age and for the same term, the amount of which does not vary with duration and the benefits under which have the same present value at the date of issue as the benefits under the policy. However, for a policy providing a varying amount of insurance issued on the life of a child under age ten, the equivalent uniform amount may be computed as though the amount of insurance provided by the policy prior to the attainment of age ten were the amount provided by the policy at age ten.C\n\nThe adjusted premiums for any policy providing term insurance benefits by a rider or a supplemental policy provision shall equal (i) the adjusted premiums for an otherwise similar policy issued at the same age without the term insurance benefits, increased, during the period for which premiums for the term insurance benefits are payable by (ii) the adjusted premiums for the term insurance. Items (i) and (ii) of this subsection shall be calculated separately and as specified in subsections A and B of this section. For the purposes of items (ii), (iii), and (iv) of subsection A of this section, the amount of insurance or equivalent uniform amount of insurance used in the calculation of the adjusted premiums referred to in item (ii) of this subsection shall equal the excess of the corresponding amount determined for the entire policy over the amount used in the calculation of the adjusted premiums in item (i) of this subsection.","order_by":null,"text":{"0":{"id":224173,"text":"The provisions of this section shall not apply to policies issued on or after the operative date as defined in § 38.2-3209. Except as provided in subsection C of this section, the adjusted premium for any life insurance policy issued on or after the operative date stated in § 38.2-3214 shall be calculated on an annual basis and shall be a uniform percentage of the respective premiums specified in the policy for each policy year, excluding any extra premiums charged because of impairments or special hazards, so that the present value at the date of issue of the policy of all adjusted premiums is equal to the sum of: (i) the then present value of the future guaranteed benefits provided for by the policy; (ii) two percent of the amount of insurance, if the insurance is uniform in amount, or of the equivalent uniform amount as defined in subsection B of this section if the amount of insurance varies with the duration of the policy; (iii) forty percent of the adjusted premium for the first policy year; and (iv) twenty-five percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance, whichever is less. However, in applying the percentages specified in (iii) and (iv) of this subsection, no adjusted premium shall be deemed to exceed four percent of the amount of insurance or level amount equivalent to the amount of insurance. The date of issue of a policy for the purpose of this section shall be the date as of which the rated age of the insured is determined.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":224174,"text":"The equivalent uniform amount of a policy providing an amount of insurance varying with the duration of the policy is the level amount of insurance provided by an otherwise similar policy, containing the same endowment benefit or benefits, if any, issued at the same age and for the same term, the amount of which does not vary with duration and the benefits under which have the same present value at the date of issue as the benefits under the policy. However, for a policy providing a varying amount of insurance issued on the life of a child under age ten, the equivalent uniform amount may be computed as though the amount of insurance provided by the policy prior to the attainment of age ten were the amount provided by the policy at age ten.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":224175,"text":"The adjusted premiums for any policy providing term insurance benefits by a rider or a supplemental policy provision shall equal (i) the adjusted premiums for an otherwise similar policy issued at the same age without the term insurance benefits, increased, during the period for which premiums for the term insurance benefits are payable by (ii) the adjusted premiums for the term insurance. Items (i) and (ii) of this subsection shall be calculated separately and as specified in subsections A and B of this section. For the purposes of items (ii), (iii), and (iv) of subsection A of this section, the amount of insurance or equivalent uniform amount of insurance used in the calculation of the adjusted premiums referred to in item (ii) of this subsection shall equal the excess of the corresponding amount determined for the entire policy over the amount used in the calculation of the adjusted premiums in item (i) of this subsection.","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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3205\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 4 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 1962, chapter 562; 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":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\/"}],"refers_to":[{"id":77084,"section_number":"38.2-3209","catch_line":"Same; adjusted premiums for policies","order_by":null,"url":"\/38.2-3209\/"},{"id":60385,"section_number":"38.2-3214","catch_line":"Same; operative date","order_by":null,"url":"\/38.2-3214\/"}],"permalink":{"id":214527,"object_type":"law","relational_id":61365,"identifier":"38.2-3205","token":"38.2\/32\/38.2-3205","url":"\/38.2-3205\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3205\/","token":"38.2\/32\/38.2-3205","dublin_core":{"Title":"Same; calculation of adjusted premiums","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3205","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The provisions of this section shall not apply to policies issued on or after the operative date as defined in § 38.2-3209<\/a>. Except as provided in subsection C of this section, the adjusted premium for any life insurance<\/span> policy issued on or after the operative date stated in § 38.2-3214<\/a> shall be calculated on an annual basis and shall be a uniform percentage of the respective premiums specified in the policy for each policy year, excluding any extra premiums charged because of impairments or special hazards, so that the present value at the date of issue<\/span> of the policy of all adjusted premiums is equal to the sum of: (i) the then present value of the future guaranteed benefits provided for by the policy; (ii) two percent of the amount of insurance<\/span>, if the insurance<\/span> is uniform in amount, or of the equivalent uniform amount as defined in subsection B of this section if the amount of insurance<\/span> varies with the duration of the policy; (iii) forty percent of the adjusted premium for the first policy year; and (iv) twenty-five percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance<\/span>, whichever is less. However, in applying the percentages specified in (iii) and (iv) of this subsection, no adjusted premium shall be deemed to exceed four percent of the amount of insurance<\/span> or level amount equivalent to the amount of insurance<\/span>. The date of issue<\/span> of a policy for the purpose of this section shall be the date as of which the rated age of the insured is determined. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The equivalent uniform amount of a policy providing an amount of insurance<\/span> varying with the duration of the policy is the level amount of insurance<\/span> provided by an otherwise similar policy, containing the same endowment benefit or benefits, if any, issued at the same age and for the same term, the amount of which does not vary with duration and the benefits under which have the same present value at the date of issue<\/span> as the benefits under the policy. However, for a policy providing a varying amount of insurance<\/span> issued on the life of a child under age ten, the equivalent uniform amount may be computed as though the amount of insurance<\/span> provided by the policy prior to the attainment of age ten were the amount provided by the policy at age ten. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The adjusted premiums for any policy providing term insurance<\/span> benefits by a rider or a supplemental policy provision shall equal (i) the adjusted premiums for an otherwise similar policy issued at the same age without the term insurance<\/span> benefits, increased, during the period for which premiums for the term insurance<\/span> benefits are payable by (ii) the adjusted premiums for the term insurance<\/span>. Items (i) and (ii) of this subsection shall be calculated separately and as specified in subsections A and B of this section. For the purposes of items (ii), (iii), and (iv) of subsection A of this section, the amount of insurance<\/span> or equivalent uniform amount of insurance<\/span> used in the calculation of the adjusted premiums referred to in item (ii) of this subsection shall equal the excess of the corresponding amount determined for the entire policy over the amount used in the calculation of the adjusted premiums in item (i) of this subsection. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSAME; CALCULATION OF ADJUSTED PREMIUMS (\u00a7 38.2-3205)\n\nA. The provisions of this section shall not apply to policies issued on or after\nthe operative date as defined in § 38.2-3209. Except as provided in\nsubsection C of this section, the adjusted premium for any life insurance policy\nissued on or after the operative date stated in § 38.2-3214 shall be\ncalculated on an annual basis and shall be a uniform percentage of the\nrespective premiums specified in the policy for each policy year, excluding any\nextra premiums charged because of impairments or special hazards, so that the\npresent value at the date of issue of the policy of all adjusted premiums is\nequal to the sum of: (i) the then present value of the future guaranteed\nbenefits provided for by the policy; (ii) two percent of the amount of\ninsurance, if the insurance is uniform in amount, or of the equivalent uniform\namount as defined in subsection B of this section if the amount of insurance\nvaries with the duration of the policy; (iii) forty percent of the adjusted\npremium for the first policy year; and (iv) twenty-five percent of either the\nadjusted premium for the first policy year or the adjusted premium for a whole\nlife policy of the same uniform or equivalent uniform amount with uniform\npremiums for the whole of life issued at the same age for the same amount of\ninsurance, whichever is less. However, in applying the percentages specified in\n(iii) and (iv) of this subsection, no adjusted premium shall be deemed to exceed\nfour percent of the amount of insurance or level amount equivalent to the amount\nof insurance. The date of issue of a policy for the purpose of this section\nshall be the date as of which the rated age of the insured is determined.\n\nB. The equivalent uniform amount of a policy providing an amount of insurance\nvarying with the duration of the policy is the level amount of insurance\nprovided by an otherwise similar policy, containing the same endowment benefit\nor benefits, if any, issued at the same age and for the same term, the amount of\nwhich does not vary with duration and the benefits under which have the same\npresent value at the date of issue as the benefits under the policy. However,\nfor a policy providing a varying amount of insurance issued on the life of a\nchild under age ten, the equivalent uniform amount may be computed as though the\namount of insurance provided by the policy prior to the attainment of age ten\nwere the amount provided by the policy at age ten.\n\nC. The adjusted premiums for any policy providing term insurance benefits by a\nrider or a supplemental policy provision shall equal (i) the adjusted premiums\nfor an otherwise similar policy issued at the same age without the term\ninsurance benefits, increased, during the period for which premiums for the term\ninsurance benefits are payable by (ii) the adjusted premiums for the term\ninsurance. Items (i) and (ii) of this subsection shall be calculated separately\nand as specified in subsections A and B of this section. For the purposes of\nitems (ii), (iii), and (iv) of subsection A of this section, the amount of\ninsurance or equivalent uniform amount of insurance used in the calculation of\nthe adjusted premiums referred to in item (ii) of this subsection shall equal\nthe excess of the corresponding amount determined for the entire policy over the\namount used in the calculation of the adjusted premiums in item (i) of this\nsubsection.\n\nHISTORY: Code 1950, \u00a7 38-379; 1952, c. 317, \u00a7 38.1-464; 1962, c. 562; 1982, c.\n228; 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}}