{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3209.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3209.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3209.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3209.html"}],"law_id":77084,"edition_id":1,"section_id":77084,"structure_id":14541,"section_number":"38.2-3209","catch_line":"Same; adjusted premiums for policies","history":"1982, c. 228, \u00a7 38.1-465.3; 1986, c. 562; 2014, c. 571.","full_text":"A\n\nThis section shall apply to all policies issued on or after the operative date as defined in this section. Except as provided in subsection G of this section, the adjusted premiums for any policy 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 amounts payable as extra premiums to cover impairments or special hazards and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, so that the present value at the date of issue of the policy of all adjusted premiums shall equal the sum of (i) the then present value of the future guaranteed benefits provided for by the policy; (ii) 1 percent of either the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years; and (iii) 125 percent of the nonforfeiture net level premium as defined in subsection B of this section. However, in applying the percentage specified in (iii) of this subsection no nonforfeiture net level premium shall be deemed to exceed four percent of either the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first ten policy years. 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 nonforfeiture net level premium shall equal the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annual annuity of one dollar payable on the date of issue of the policy and on each anniversary of the policy on which a premium falls due.C\n\nFor a policy that provides, on a basis guaranteed in the policy, unscheduled changes in benefits or premiums, or both, or that provides an option for changes in benefits or premiums, or both, other than a change to a new policy, the adjusted premiums and present values shall initially be calculated on the assumption that future benefits and premiums do not change from those stipulated at the date of issue of the policy. At the time of any change in the benefits or premiums, the future adjusted premiums, nonforfeiture net level premiums and present values shall be recalculated on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change.D\n\nExcept as otherwise provided in subsection G of this section, the recalculated future adjusted premiums for any policy referred to in subsection C of this section shall be a uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards, and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, so that the present value at the time of change to the newly defined benefits or premiums of all future adjusted premiums shall equal the excess of (1) over (2), where (1) is (i) the then present value of the then future guaranteed benefits provided for by the policy plus (ii) any additional expense allowance and (2) is the then cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.E\n\nThe additional expense allowance, at the time of the change to the newly defined benefits or premiums, shall be the sum of (i) 1 percent of the excess, if positive, of the average amount of insurance at the beginning of each of the first 10 policy years after the change over the average amount of insurance before the change at the beginning of each of the first 10 policy years after the time of the most recent previous change, or, if there has been no previous change, the date of issue of the policy and (ii) 125 percent of the increase, if positive, in the nonforfeiture net level premium.F\n\nThe recalculated nonforfeiture net level premium shall equal (1) divided by (2), where (1) is the sum of (i) the nonforfeiture net level premium applicable before the change times the present value of an annual annuity of one dollar payable on each anniversary of the policy on or after the date of the change on which a premium would have fallen due had the change not occurred, and (ii) the present value of the increase in future guaranteed benefits provided by the policy, and (2) is the present value of an annual annuity of one dollar payable on each anniversary of the policy on or after the date of change on which a premium falls due.G\n\nNotwithstanding any other provisions of this section, for a policy issued on a substandard basis that provides reduced graded amounts of insurance so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis that provides higher uniform amounts of insurance, adjusted premiums and present values for the substandard policy may be calculated as if it were issued to provide the higher uniform amounts of insurance on the standard basis.H\n\nAll adjusted premiums and present values referred to in \u00a7\u00a7 38.2-3202 through 38.2-3213 shall for all policies of ordinary insurance be calculated on the basis of (i) the Commissioners 1980 Standard Ordinary Mortality Table or (ii) at the election of the insurer for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors. The premiums and values shall for all policies of industrial insurance be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table. The premiums and values shall for all policies issued in a particular calendar year be calculated on the basis of a rate of interest not exceeding the nonforfeiture interest rate as defined in this section for policies issued in that calendar year, provided that:1\n\nAt the insurer’s option, calculations for all policies issued in a particular calendar year may be made on the basis of a rate of interest not exceeding the nonforfeiture interest rate, as defined in this section, for policies issued in the immediately preceding calendar year;2\n\nUnder any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether or not required by § 38.2-3202, shall be calculated on the basis of the mortality table and rate of interest used in determining the amount of the paid-up nonforfeiture benefit and any paid-up dividend additions;3\n\nAn insurer may calculate the amount of any guaranteed paid-up nonforfeiture benefit, including any paid-up additions, under the policy on the basis of an interest rate no lower than that specified in the policy for calculating cash surrender values;4\n\nIn calculating the present value of any paid-up term insurance with any accompanying pure endowment offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1980 Extended Term Insurance Table for policies of ordinary insurance and not more than the Commissioners 1961 Industrial Extended Term Insurance Table for policies of industrial insurance;5\n\nFor insurance issued on a substandard basis, the calculation of any adjusted premiums and present values may be based on appropriate modifications of the tables referred to in this section;6\n\nFor policies issued prior to the operative date of the valuation manual, any Commissioners Standard ordinary mortality tables adopted after 1980 by the National Association of Insurance Commissioners (NAIC) and approved by the Commission for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. “Operative date of the valuation manual” means the January 1 of the first calendar year that the valuation manual as defined in § 38.2-1365 is effective.\n\t\t\t\tFor policies issued on or after the operative date of the valuation manual, the valuation manual shall provide the Commissioners Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. If the Commission approves by regulation any Commissioners Standard ordinary mortality table adopted by the NAIC for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual; and7\n\nFor policies issued prior to the operative date of the valuation manual, any Commissioners Standard industrial mortality tables adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commission for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table.\n\t\t\t\tFor policies issued on or after the operative date of the valuation manual, the valuation manual shall provide the Commissioners Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table. If the Commission approves by regulation any Commissioners Standard industrial mortality table adopted by the NAIC for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual.I\n\nThe nonforfeiture annual interest rate for any policy issued in a particular calendar year:1\n\nFor policies issued prior to the operative date of the valuation manual, shall equal 125 percent of the calendar year statutory valuation interest rate for the policy as defined in Article 10 (§ 38.2-1365 et seq.) of Chapter 13, rounded to the nearest one-quarter percent, provided, however, that the nonforfeiture annual interest rate shall not be less than four percent; and2\n\nFor policies issued on or after the operative date of the valuation manual, shall be provided by the valuation manual.J\n\nAny refiling of nonforfeiture values or their methods of computation for any previously approved policy form that involves only a change in the interest rate or mortality table used to compute nonforfeiture values shall not require refiling of any other provisions of that policy form.K\n\nAfter July 1, 1982, any insurer may file with the Commission a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1989, which shall be the operative date of this section for that insurer. If an insurer makes no election, the operative date of this section for that insurer shall be January 1, 1989.","order_by":null,"text":{"0":{"id":276558,"text":"This section shall apply to all policies issued on or after the operative date as defined in this section. Except as provided in subsection G of this section, the adjusted premiums for any policy 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 amounts payable as extra premiums to cover impairments or special hazards and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, so that the present value at the date of issue of the policy of all adjusted premiums shall equal the sum of (i) the then present value of the future guaranteed benefits provided for by the policy; (ii) 1 percent of either the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first 10 policy years; and (iii) 125 percent of the nonforfeiture net level premium as defined in subsection B of this section. However, in applying the percentage specified in (iii) of this subsection no nonforfeiture net level premium shall be deemed to exceed four percent of either the amount of insurance, if the insurance is uniform in amount, or the average amount of insurance at the beginning of each of the first ten policy years. 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":276559,"text":"The nonforfeiture net level premium shall equal the present value, at the date of issue of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue of the policy, of an annual annuity of one dollar payable on the date of issue of the policy and on each anniversary of the policy on which a premium falls due.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":276560,"text":"For a policy that provides, on a basis guaranteed in the policy, unscheduled changes in benefits or premiums, or both, or that provides an option for changes in benefits or premiums, or both, other than a change to a new policy, the adjusted premiums and present values shall initially be calculated on the assumption that future benefits and premiums do not change from those stipulated at the date of issue of the policy. At the time of any change in the benefits or premiums, the future adjusted premiums, nonforfeiture net level premiums and present values shall be recalculated on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":276561,"text":"Except as otherwise provided in subsection G of this section, the recalculated future adjusted premiums for any policy referred to in subsection C of this section shall be a uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards, and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, so that the present value at the time of change to the newly defined benefits or premiums of all future adjusted premiums shall equal the excess of (1) over (2), where (1) is (i) the then present value of the then future guaranteed benefits provided for by the policy plus (ii) any additional expense allowance and (2) is the then cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":276562,"text":"The additional expense allowance, at the time of the change to the newly defined benefits or premiums, shall be the sum of (i) 1 percent of the excess, if positive, of the average amount of insurance at the beginning of each of the first 10 policy years after the change over the average amount of insurance before the change at the beginning of each of the first 10 policy years after the time of the most recent previous change, or, if there has been no previous change, the date of issue of the policy and (ii) 125 percent of the increase, if positive, in the nonforfeiture net level premium.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":276563,"text":"The recalculated nonforfeiture net level premium shall equal (1) divided by (2), where (1) is the sum of (i) the nonforfeiture net level premium applicable before the change times the present value of an annual annuity of one dollar payable on each anniversary of the policy on or after the date of the change on which a premium would have fallen due had the change not occurred, and (ii) the present value of the increase in future guaranteed benefits provided by the policy, and (2) is the present value of an annual annuity of one dollar payable on each anniversary of the policy on or after the date of change on which a premium falls due.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":276564,"text":"Notwithstanding any other provisions of this section, for a policy issued on a substandard basis that provides reduced graded amounts of insurance so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis that provides higher uniform amounts of insurance, adjusted premiums and present values for the substandard policy may be calculated as if it were issued to provide the higher uniform amounts of insurance on the standard basis.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":276565,"text":"All adjusted premiums and present values referred to in \u00a7\u00a7 38.2-3202 through 38.2-3213 shall for all policies of ordinary insurance be calculated on the basis of (i) the Commissioners 1980 Standard Ordinary Mortality Table or (ii) at the election of the insurer for any one or more specified plans of life insurance, the Commissioners 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors. The premiums and values shall for all policies of industrial insurance be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table. The premiums and values shall for all policies issued in a particular calendar year be calculated on the basis of a rate of interest not exceeding the nonforfeiture interest rate as defined in this section for policies issued in that calendar year, provided that:","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"H1"},"8":{"id":276566,"text":"At the insurer’s option, calculations for all policies issued in a particular calendar year may be made on the basis of a rate of interest not exceeding the nonforfeiture interest rate, as defined in this section, for policies issued in the immediately preceding calendar year;","type":"section","prefixes":["H","1"],"prefix":"1","entire_prefix":"H1","prefix_anchor":"H1","level":2,"prior_prefix":"H","next_prefix":"H2"},"9":{"id":276567,"text":"Under any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether or not required by § 38.2-3202, shall be calculated on the basis of the mortality table and rate of interest used in determining the amount of the paid-up nonforfeiture benefit and any paid-up dividend additions;","type":"section","prefixes":["H","2"],"prefix":"2","entire_prefix":"H2","prefix_anchor":"H2","level":2,"prior_prefix":"H1","next_prefix":"H3"},"10":{"id":276568,"text":"An insurer may calculate the amount of any guaranteed paid-up nonforfeiture benefit, including any paid-up additions, under the policy on the basis of an interest rate no lower than that specified in the policy for calculating cash surrender values;","type":"section","prefixes":["H","3"],"prefix":"3","entire_prefix":"H3","prefix_anchor":"H3","level":2,"prior_prefix":"H2","next_prefix":"H4"},"11":{"id":276569,"text":"In calculating the present value of any paid-up term insurance with any accompanying pure endowment offered as a nonforfeiture benefit, the rates of mortality assumed may be not more than those shown in the Commissioners 1980 Extended Term Insurance Table for policies of ordinary insurance and not more than the Commissioners 1961 Industrial Extended Term Insurance Table for policies of industrial insurance;","type":"section","prefixes":["H","4"],"prefix":"4","entire_prefix":"H4","prefix_anchor":"H4","level":2,"prior_prefix":"H3","next_prefix":"H5"},"12":{"id":276570,"text":"For insurance issued on a substandard basis, the calculation of any adjusted premiums and present values may be based on appropriate modifications of the tables referred to in this section;","type":"section","prefixes":["H","5"],"prefix":"5","entire_prefix":"H5","prefix_anchor":"H5","level":2,"prior_prefix":"H4","next_prefix":"H6"},"13":{"id":276571,"text":"For policies issued prior to the operative date of the valuation manual, any Commissioners Standard ordinary mortality tables adopted after 1980 by the National Association of Insurance Commissioners (NAIC) and approved by the Commission for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. “Operative date of the valuation manual” means the January 1 of the first calendar year that the valuation manual as defined in § 38.2-1365 is effective.\n\t\t\t\tFor policies issued on or after the operative date of the valuation manual, the valuation manual shall provide the Commissioners Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term Insurance Table. If the Commission approves by regulation any Commissioners Standard ordinary mortality table adopted by the NAIC for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual; and","type":"section","prefixes":["H","6"],"prefix":"6","entire_prefix":"H6","prefix_anchor":"H6","level":2,"prior_prefix":"H5","next_prefix":"H7"},"14":{"id":276572,"text":"For policies issued prior to the operative date of the valuation manual, any Commissioners Standard industrial mortality tables adopted after 1980 by the National Association of Insurance Commissioners and approved by the Commission for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table.\n\t\t\t\tFor policies issued on or after the operative date of the valuation manual, the valuation manual shall provide the Commissioners Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners 1961 Standard Industrial Mortality Table or the Commissioners 1961 Industrial Extended Term Insurance Table. If the Commission approves by regulation any Commissioners Standard industrial mortality table adopted by the NAIC for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual.","type":"section","prefixes":["H","7"],"prefix":"7","entire_prefix":"H7","prefix_anchor":"H7","level":2,"prior_prefix":"H6","next_prefix":"I"},"15":{"id":276573,"text":"The nonforfeiture annual interest rate for any policy issued in a particular calendar year:","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H7","next_prefix":"I1"},"16":{"id":276574,"text":"For policies issued prior to the operative date of the valuation manual, shall equal 125 percent of the calendar year statutory valuation interest rate for the policy as defined in Article 10 (§ 38.2-1365 et seq.) of Chapter 13, rounded to the nearest one-quarter percent, provided, however, that the nonforfeiture annual interest rate shall not be less than four percent; and","type":"section","prefixes":["I","1"],"prefix":"1","entire_prefix":"I1","prefix_anchor":"I1","level":2,"prior_prefix":"I","next_prefix":"I2"},"17":{"id":276575,"text":"For policies issued on or after the operative date of the valuation manual, shall be provided by the valuation manual.","type":"section","prefixes":["I","2"],"prefix":"2","entire_prefix":"I2","prefix_anchor":"I2","level":2,"prior_prefix":"I1","next_prefix":"J"},"18":{"id":276576,"text":"Any refiling of nonforfeiture values or their methods of computation for any previously approved policy form that involves only a change in the interest rate or mortality table used to compute nonforfeiture values shall not require refiling of any other provisions of that policy form.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I2","next_prefix":"K"},"19":{"id":276577,"text":"After July 1, 1982, any insurer may file with the Commission a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1989, which shall be the operative date of this section for that insurer. If an insurer makes no election, the operative date of this section for that insurer shall be January 1, 1989.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3209\/","history_text":"

This law was first created in 1982. The record of its establishment is cataloged in chapter 228 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1982 \u201cActs\u201d aren\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 1986, chapter 562; in 2014, chapter 571<\/a>.<\/p>","references":[{"id":66783,"section_number":"38.2-1369","catch_line":"Computation of minimum standard","order_by":null,"url":"\/38.2-1369\/"},{"id":76954,"section_number":"38.2-1371","catch_line":"Computation of minimum standard by calendar year of issue","order_by":null,"url":"\/38.2-1371\/"},{"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":61365,"section_number":"38.2-3205","catch_line":"Same; calculation of adjusted premiums","order_by":null,"url":"\/38.2-3205\/"},{"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":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":71365,"section_number":"38.2-3347","catch_line":"Nonforfeiture benefits and cash surrender values","order_by":null,"url":"\/38.2-3347\/"}],"refers_to":[{"id":84586,"section_number":"38.2-1365","catch_line":"Definitions","order_by":null,"url":"\/38.2-1365\/"},{"id":57831,"section_number":"38.2-3202","catch_line":"Standard nonforfeiture law; required policy provisions","order_by":null,"url":"\/38.2-3202\/"},{"id":85497,"section_number":"38.2-3213","catch_line":"Same; exemptions from application of certain sections","order_by":null,"url":"\/38.2-3213\/"}],"permalink":{"id":214543,"object_type":"law","relational_id":77084,"identifier":"38.2-3209","token":"38.2\/32\/38.2-3209","url":"\/38.2-3209\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3209\/","token":"38.2\/32\/38.2-3209","dublin_core":{"Title":"Same; adjusted premiums for policies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3209","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> This section shall apply to all policies issued on or after the operative date as defined in this section. Except as provided in subsection G of this section, the adjusted premiums for any policy 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 amounts payable as extra premiums to cover impairments or special hazards and also excluding any uniform annual contract<\/span> charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, so that the present value at the date of issue<\/span> of the policy of all adjusted premiums shall equal the sum of (i) the then present value of the future guaranteed benefits provided for by the policy; (ii) 1 percent of either the amount of insurance<\/span>, if the insurance<\/span> is uniform in amount, or the average amount of insurance<\/span> at the beginning of each of the first 10 policy years; and (iii) 125 percent of the nonforfeiture net level premium as defined in subsection B of this section. However, in applying the percentage specified in (iii) of this subsection no nonforfeiture net level premium shall be deemed to exceed four percent of either the amount of insurance<\/span>, if the insurance<\/span> is uniform in amount, or the average amount of insurance<\/span> at the beginning of each of the first ten policy years. 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 nonforfeiture net level premium shall equal the present value, at the date of issue<\/span> of the policy, of the guaranteed benefits provided for by the policy divided by the present value, at the date of issue<\/span> of the policy, of an annual annuity of one dollar payable on the date of issue<\/span> of the policy and on each anniversary of the policy on which a premium falls due. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For a policy that provides, on a basis guaranteed in the policy, unscheduled changes in benefits or premiums, or both, or that provides an option for changes in benefits or premiums, or both, other than a change to a new policy, the adjusted premiums and present values shall initially be calculated on the assumption that future benefits and premiums do not change from those stipulated at the date of issue<\/span> of the policy. At the time of any change in the benefits or premiums, the future adjusted premiums, nonforfeiture net level premiums and present values shall be recalculated on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Except as otherwise provided in subsection G of this section, the recalculated future adjusted premiums for any policy referred to in subsection C of this section shall be a uniform percentage of the respective future premiums specified in the policy for each policy year, excluding amounts payable as extra premiums to cover impairments and special hazards, and also excluding any uniform annual contract<\/span> charge or policy fee specified in the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, so that the present value at the time of change to the newly defined benefits or premiums of all future adjusted premiums shall equal the excess of (1) over (2), where (1) is (i) the then present value of the then future guaranteed benefits provided for by the policy plus (ii) any additional expense allowance and (2) is the then cash surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The additional expense allowance, at the time of the change to the newly defined benefits or premiums, shall be the sum of (i) 1 percent of the excess, if positive, of the average amount of insurance<\/span> at the beginning of each of the first 10 policy years after the change over the average amount of insurance<\/span> before the change at the beginning of each of the first 10 policy years after the time of the most recent previous change, or, if there has been no previous change, the date of issue<\/span> of the policy and (ii) 125 percent of the increase, if positive, in the nonforfeiture net level premium. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The recalculated nonforfeiture net level premium shall equal (1) divided by (2), where (1) is the sum of (i) the nonforfeiture net level premium applicable before the change times the present value of an annual annuity of one dollar payable on each anniversary of the policy on or after the date of the change on which a premium would have fallen due had the change not occurred, and (ii) the present value of the increase in future guaranteed benefits provided by the policy, and (2) is the present value of an annual annuity of one dollar payable on each anniversary of the policy on or after the date of change on which a premium falls due. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Notwithstanding any other provisions of this section, for a policy issued on a substandard basis that provides reduced graded amounts of insurance<\/span> so that, in each policy year, the policy has the same tabular mortality cost as an otherwise similar policy issued on the standard basis that provides higher uniform amounts of insurance<\/span>, adjusted premiums and present values for the substandard policy may be calculated as if it were issued to provide the higher uniform amounts of insurance<\/span> on the standard basis. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> All adjusted premiums and present values referred to in \u00a7\u00a7 38.2-3202<\/a> through 38.2-3213<\/a> shall for all policies of ordinary insurance<\/span> be calculated on the basis of (i) the Commissioners<\/span> 1980 Standard Ordinary Mortality Table or (ii) at the election of the insurer<\/span> for any one or more specified plans of life insurance<\/span>, the Commissioners<\/span> 1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors. The premiums and values shall for all policies of industrial insurance<\/span> be calculated on the basis of the Commissioners<\/span> 1961 Standard Industrial Mortality Table. The premiums and values shall for all policies issued in a particular calendar year be calculated on the basis of a rate<\/span> of interest not exceeding the nonforfeiture interest rate<\/span> as defined in this section for policies issued in that calendar year, provided that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> At the insurer<\/span>’s option, calculations for all policies issued in a particular calendar year may be made on the basis of a rate<\/span> of interest not exceeding the nonforfeiture interest rate<\/span>, as defined in this section, for policies issued in the immediately preceding calendar year; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Under any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether or not required by § 38.2-3202<\/a>, shall be calculated on the basis of the mortality table and rate<\/span> of interest used in determining the amount of the paid-up nonforfeiture benefit and any paid-up dividend additions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> An insurer<\/span> may calculate the amount of any guaranteed paid-up nonforfeiture benefit, including any paid-up additions, under the policy on the basis of an interest rate<\/span> no lower than that specified in the policy for calculating cash surrender values; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In calculating the present value of any paid-up term insurance<\/span> with any accompanying pure endowment offered as a nonforfeiture benefit, the rates<\/span><\/span> of mortality assumed may be not more than those shown in the Commissioners<\/span> 1980 Extended Term Insurance<\/span> Table for policies of ordinary insurance<\/span> and not more than the Commissioners<\/span> 1961 Industrial Extended Term Insurance<\/span> Table for policies of industrial insurance<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> For insurance<\/span> issued on a substandard basis, the calculation of any adjusted premiums and present values may be based on appropriate modifications of the tables referred to in this section; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> For policies issued prior to the operative date of the valuation manual<\/span>, any Commissioners<\/span> Standard ordinary mortality tables adopted after 1980 by the National Association of Insurance<\/span> Commissioners<\/span> (NAIC) and approved by the Commission<\/span> for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners<\/span> 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners<\/span> 1980 Extended Term Insurance<\/span> Table. “Operative date of the valuation manual<\/span>” means the January 1 of the first calendar year that the valuation manual as defined in § 38.2-1365<\/a> is effective.\n\t\t\t\tFor policies issued on or after the operative date of the valuation manual<\/span>, the valuation manual shall provide the Commissioners<\/span> Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners<\/span> 1980 Standard Ordinary Mortality Table with or without Ten-Year Select Mortality Factors or for the Commissioners<\/span> 1980 Extended Term Insurance<\/span> Table. If the Commission<\/span> approves by regulation any Commissioners<\/span> Standard ordinary mortality table adopted by the NAIC for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual<\/span>, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> For policies issued prior to the operative date of the valuation manual<\/span>, any Commissioners<\/span> Standard industrial mortality tables adopted after 1980 by the National Association of Insurance<\/span> Commissioners<\/span> and approved by the Commission<\/span> for use in determining the minimum nonforfeiture standard may be substituted for the Commissioners<\/span> 1961 Standard Industrial Mortality Table or the Commissioners<\/span> 1961 Industrial Extended Term Insurance<\/span> Table.\n\t\t\t\tFor policies issued on or after the operative date of the valuation manual<\/span>, the valuation manual shall provide the Commissioners<\/span> Standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the Commissioners<\/span> 1961 Standard Industrial Mortality Table or the Commissioners<\/span> 1961 Industrial Extended Term Insurance<\/span> Table. If the Commission<\/span> approves by regulation any Commissioners<\/span> Standard industrial mortality table adopted by the NAIC for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual<\/span>, then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> The nonforfeiture annual interest rate<\/span> for any policy issued in a particular calendar year: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For policies issued prior to the operative date of the valuation manual<\/span>, shall equal 125 percent of the calendar year statutory valuation interest rate<\/span> for the policy as defined in Article 10 (§ 38.2-1365<\/a> et seq.) of Chapter 13, rounded to the nearest one-quarter percent, provided, however, that the nonforfeiture annual interest rate<\/span> shall not be less than four percent; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For policies issued on or after the operative date of the valuation manual<\/span>, shall be provided by the valuation manual. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> Any refiling of nonforfeiture values or their methods of computation for any previously approved policy form that involves only a change in the interest rate<\/span> or mortality table used to compute nonforfeiture values shall not require refiling of any other provisions of that policy form. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> After July 1, 1982, any insurer<\/span> may file with the Commission<\/span> a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1989, which shall be the operative date of this section for that insurer<\/span>. If an insurer<\/span> makes no election, the operative date of this section for that insurer<\/span> shall be January 1, 1989. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSAME; ADJUSTED PREMIUMS FOR POLICIES (\u00a7 38.2-3209)\n\nA. This section shall apply to all policies issued on or after the operative\ndate as defined in this section. Except as provided in subsection G of this\nsection, the adjusted premiums for any policy shall be calculated on an annual\nbasis and shall be a uniform percentage of the respective premiums specified in\nthe policy for each policy year, excluding amounts payable as extra premiums to\ncover impairments or special hazards and also excluding any uniform annual\ncontract charge or policy fee specified in the policy in a statement of the\nmethod to be used in calculating the cash surrender values and paid-up\nnonforfeiture benefits, so that the present value at the date of issue of the\npolicy of all adjusted premiums shall equal the sum of (i) the then present\nvalue of the future guaranteed benefits provided for by the policy; (ii) 1\npercent of either the amount of insurance, if the insurance is uniform in\namount, or the average amount of insurance at the beginning of each of the first\n10 policy years; and (iii) 125 percent of the nonforfeiture net level premium as\ndefined in subsection B of this section. However, in applying the percentage\nspecified in (iii) of this subsection no nonforfeiture net level premium shall\nbe deemed to exceed four percent of either the amount of insurance, if the\ninsurance is uniform in amount, or the average amount of insurance at the\nbeginning of each of the first ten policy years. The date of issue of a policy\nfor the purpose of this section shall be the date as of which the rated age of\nthe insured is determined.\n\nB. The nonforfeiture net level premium shall equal the present value, at the\ndate of issue of the policy, of the guaranteed benefits provided for by the\npolicy divided by the present value, at the date of issue of the policy, of an\nannual annuity of one dollar payable on the date of issue of the policy and on\neach anniversary of the policy on which a premium falls due.\n\nC. For a policy that provides, on a basis guaranteed in the policy, unscheduled\nchanges in benefits or premiums, or both, or that provides an option for changes\nin benefits or premiums, or both, other than a change to a new policy, the\nadjusted premiums and present values shall initially be calculated on the\nassumption that future benefits and premiums do not change from those stipulated\nat the date of issue of the policy. At the time of any change in the benefits or\npremiums, the future adjusted premiums, nonforfeiture net level premiums and\npresent values shall be recalculated on the assumption that future benefits and\npremiums do not change from those stipulated by the policy immediately after the\nchange.\n\nD. Except as otherwise provided in subsection G of this section, the\nrecalculated future adjusted premiums for any policy referred to in subsection C\nof this section shall be a uniform percentage of the respective future premiums\nspecified in the policy for each policy year, excluding amounts payable as extra\npremiums to cover impairments and special hazards, and also excluding any\nuniform annual contract charge or policy fee specified in the policy in a\nstatement of the method to be used in calculating the cash surrender values and\npaid-up nonforfeiture benefits, so that the present value at the time of change\nto the newly defined benefits or premiums of all future adjusted premiums shall\nequal the excess of (1) over (2), where (1) is (i) the then present value of the\nthen future guaranteed benefits provided for by the policy plus (ii) any\nadditional expense allowance and (2) is the then cash surrender value, if any,\nor present value of any paid-up nonforfeiture benefit under the policy.\n\nE. The additional expense allowance, at the time of the change to the newly\ndefined benefits or premiums, shall be the sum of (i) 1 percent of the excess,\nif positive, of the average amount of insurance at the beginning of each of the\nfirst 10 policy years after the change over the average amount of insurance\nbefore the change at the beginning of each of the first 10 policy years after\nthe time of the most recent previous change, or, if there has been no previous\nchange, the date of issue of the policy and (ii) 125 percent of the increase, if\npositive, in the nonforfeiture net level premium.\n\nF. The recalculated nonforfeiture net level premium shall equal (1) divided by\n(2), where (1) is the sum of (i) the nonforfeiture net level premium applicable\nbefore the change times the present value of an annual annuity of one dollar\npayable on each anniversary of the policy on or after the date of the change on\nwhich a premium would have fallen due had the change not occurred, and (ii) the\npresent value of the increase in future guaranteed benefits provided by the\npolicy, and (2) is the present value of an annual annuity of one dollar payable\non each anniversary of the policy on or after the date of change on which a\npremium falls due.\n\nG. Notwithstanding any other provisions of this section, for a policy issued on\na substandard basis that provides reduced graded amounts of insurance so that,\nin each policy year, the policy has the same tabular mortality cost as an\notherwise similar policy issued on the standard basis that provides higher\nuniform amounts of insurance, adjusted premiums and present values for the\nsubstandard policy may be calculated as if it were issued to provide the higher\nuniform amounts of insurance on the standard basis.\n\nH. All adjusted premiums and present values referred to in \u00a7\u00a7 38.2-3202\nthrough 38.2-3213 shall for all policies of ordinary insurance be calculated on\nthe basis of (i) the Commissioners 1980 Standard Ordinary Mortality Table or\n(ii) at the election of the insurer for any one or more specified plans of life\ninsurance, the Commissioners 1980 Standard Ordinary Mortality Table with\nTen-Year Select Mortality Factors. The premiums and values shall for all\npolicies of industrial insurance be calculated on the basis of the Commissioners\n1961 Standard Industrial Mortality Table. The premiums and values shall for all\npolicies issued in a particular calendar year be calculated on the basis of a\nrate of interest not exceeding the nonforfeiture interest rate as defined in\nthis section for policies issued in that calendar year, provided that:\n\n 1. At the insurer’s option, calculations for all policies issued in a\n particular calendar year may be made on the basis of a rate of interest not\n exceeding the nonforfeiture interest rate, as defined in this section, for\n policies issued in the immediately preceding calendar year;\n\n 2. Under any paid-up nonforfeiture benefit, including any paid-up dividend\n additions, any cash surrender value available, whether or not required by\n § 38.2-3202, shall be calculated on the basis of the mortality table and\n rate of interest used in determining the amount of the paid-up nonforfeiture\n benefit and any paid-up dividend additions;\n\n 3. An insurer may calculate the amount of any guaranteed paid-up nonforfeiture\n benefit, including any paid-up additions, under the policy on the basis of an\n interest rate no lower than that specified in the policy for calculating cash\n surrender values;\n\n 4. In calculating the present value of any paid-up term insurance with any\n accompanying pure endowment offered as a nonforfeiture benefit, the rates of\n mortality assumed may be not more than those shown in the Commissioners 1980\n Extended Term Insurance Table for policies of ordinary insurance and not more\n than the Commissioners 1961 Industrial Extended Term Insurance Table for\n policies of industrial insurance;\n\n 5. For insurance issued on a substandard basis, the calculation of any\n adjusted premiums and present values may be based on appropriate modifications\n of the tables referred to in this section;\n\n 6. For policies issued prior to the operative date of the valuation manual,\n any Commissioners Standard ordinary mortality tables adopted after 1980 by the\n National Association of Insurance Commissioners (NAIC) and approved by the\n Commission for use in determining the minimum nonforfeiture standard may be\n substituted for the Commissioners 1980 Standard Ordinary Mortality Table with\n or without Ten-Year Select Mortality Factors or for the Commissioners 1980\n Extended Term Insurance Table. “Operative date of the valuation\n manual” means the January 1 of the first calendar year that the\n valuation manual as defined in § 38.2-1365 is effective.\n \t\t\t\tFor policies issued on or after the operative date of the valuation\n manual, the valuation manual shall provide the Commissioners Standard\n mortality table for use in determining the minimum nonforfeiture standard that\n may be substituted for the Commissioners 1980 Standard Ordinary Mortality\n Table with or without Ten-Year Select Mortality Factors or for the\n Commissioners 1980 Extended Term Insurance Table. If the Commission approves\n by regulation any Commissioners Standard ordinary mortality table adopted by\n the NAIC for use in determining the minimum nonforfeiture standard for\n policies issued on or after the operative date of the valuation manual, then\n that minimum nonforfeiture standard supersedes the minimum nonforfeiture\n standard provided by the valuation manual; and\n\n 7. For policies issued prior to the operative date of the valuation manual,\n any Commissioners Standard industrial mortality tables adopted after 1980 by\n the National Association of Insurance Commissioners and approved by the\n Commission for use in determining the minimum nonforfeiture standard may be\n substituted for the Commissioners 1961 Standard Industrial Mortality Table or\n the Commissioners 1961 Industrial Extended Term Insurance Table.\n \t\t\t\tFor policies issued on or after the operative date of the valuation\n manual, the valuation manual shall provide the Commissioners Standard\n mortality table for use in determining the minimum nonforfeiture standard that\n may be substituted for the Commissioners 1961 Standard Industrial Mortality\n Table or the Commissioners 1961 Industrial Extended Term Insurance Table. If\n the Commission approves by regulation any Commissioners Standard industrial\n mortality table adopted by the NAIC for use in determining the minimum\n nonforfeiture standard for policies issued on or after the operative date of\n the valuation manual, then that minimum nonforfeiture standard supersedes the\n minimum nonforfeiture standard provided by the valuation manual.\n\nI. The nonforfeiture annual interest rate for any policy issued in a particular\ncalendar year:\n\n 1. For policies issued prior to the operative date of the valuation manual,\n shall equal 125 percent of the calendar year statutory valuation interest rate\n for the policy as defined in Article 10 (§ 38.2-1365 et seq.) of Chapter\n 13, rounded to the nearest one-quarter percent, provided, however, that the\n nonforfeiture annual interest rate shall not be less than four percent; and\n\n 2. For policies issued on or after the operative date of the valuation manual,\n shall be provided by the valuation manual.\n\nJ. Any refiling of nonforfeiture values or their methods of computation for any\npreviously approved policy form that involves only a change in the interest rate\nor mortality table used to compute nonforfeiture values shall not require\nrefiling of any other provisions of that policy form.\n\nK. After July 1, 1982, any insurer may file with the Commission a written notice\nof its election to comply with the provisions of this section after a specified\ndate before January 1, 1989, which shall be the operative date of this section\nfor that insurer. If an insurer makes no election, the operative date of this\nsection for that insurer shall be January 1, 1989.\n\nHISTORY: 1982, c. 228, \u00a7 38.1-465.3; 1986, c. 562; 2014, c. 571.","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}}