{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3212.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3212.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3212.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3212.html"}],"law_id":70462,"edition_id":1,"section_id":70462,"structure_id":14541,"section_number":"38.2-3212","catch_line":"Same; policies issued on or after January 1, 1986","history":"1982, c. 228, \u00a7 38.1-466.1; 1986, c. 562.","full_text":"A\n\nThis section, in addition to all other applicable sections of law, shall apply to all policies issued on or after January 1, 1986. Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary shall not differ by more than two-tenths percent of either (i) the amount of insurance, if the insurance is uniform in amount, or (ii) the average amount of insurance at the beginning of each of the first ten policy years, from the sum of (i) the greater of zero and the basic cash value specified in this section and (ii) the present value of any existing paid-up additions less the amount of any indebtedness to the insurer under the policy.B\n\nThe basic cash value shall equal the present value on that anniversary of the future guaranteed benefits that would have been provided for by the policy, excluding any existing paid-up additions and before deduction of any indebtedness to the insurer, if there had been no default, less the then present value of the nonforfeiture factors, as defined in this section, corresponding to premiums that would have fallen due on and after that anniversary. However, the effects on the basic cash value of supplemental life insurance or annuity benefits or of family coverage, as described in &#xA7; 38.2-3203 or &#xA7; 38.2-3205, whichever applies, shall be the same as the effects specified in &#xA7; 38.2-3203 or &#xA7; 38.2-3205, whichever applies, on the cash surrender values defined in those sections.C\n\n1. The nonforfeiture factor for each policy year shall equal a percentage of the adjusted premium for the policy year, as defined in \u00a7 38.2-3205 or \u00a7 38.2-3209, whichever applies. Except as required by subdivision 2 of this subsection, such percentage:\n\t\t\ta. Shall be the same percentage for each policy year between the second policy anniversary and the later of (i) the fifth policy anniversary and (ii) the first policy anniversary at which there is available under the policy a cash surrender value in an amount, before including any paid-up additions and before deducting any indebtedness, of at least two-tenths 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; and\n\t\t\tb. Shall be such that no percentage after the later of the two policy anniversaries specified in subdivision 1 a of this subsection may apply to fewer than five consecutive policy years.2\n\nNo basic cash value shall be less than the value that would be obtained if the adjusted premiums for the policy, as defined in &#xA7; 38.2-3205 or &#xA7; 38.2-3209, whichever applies, were substituted for the nonforfeiture factors in the calculation of the basic cash value.D\n\nAll adjusted premiums and present values referred to in this section shall for a particular policy be calculated on the same mortality and interest bases used in demonstrating the policy&#8217;s compliance with the other sections of this article. The cash surrender values referred to in this section shall include any endowment benefits provided for by the policy.E\n\nAny cash surrender value available other than in the event of default in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment, shall be determined by a method consistent with the methods specified for determining the analogous minimum amounts in &#xA7;&#xA7; 38.2-3202 through 38.2-3204, 38.2-3209 and 38.2-3211. The amounts of any cash surrender values and of any paid-up nonforfeiture benefits granted in connection with additional benefits, such as those listed as B1 a through B1 f in &#xA7; 38.2-3211, shall conform with the principles of this section.","order_by":null,"text":{"0":{"id":254290,"text":"This section, in addition to all other applicable sections of law, shall apply to all policies issued on or after January 1, 1986. Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary shall not differ by more than two-tenths percent of either (i) the amount of insurance, if the insurance is uniform in amount, or (ii) the average amount of insurance at the beginning of each of the first ten policy years, from the sum of (i) the greater of zero and the basic cash value specified in this section and (ii) the present value of any existing paid-up additions less the amount of any indebtedness to the insurer under the policy.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":254291,"text":"The basic cash value shall equal the present value on that anniversary of the future guaranteed benefits that would have been provided for by the policy, excluding any existing paid-up additions and before deduction of any indebtedness to the insurer, if there had been no default, less the then present value of the nonforfeiture factors, as defined in this section, corresponding to premiums that would have fallen due on and after that anniversary. However, the effects on the basic cash value of supplemental life insurance or annuity benefits or of family coverage, as described in &#xA7; 38.2-3203 or &#xA7; 38.2-3205, whichever applies, shall be the same as the effects specified in &#xA7; 38.2-3203 or &#xA7; 38.2-3205, whichever applies, on the cash surrender values defined in those sections.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":254292,"text":"1. The nonforfeiture factor for each policy year shall equal a percentage of the adjusted premium for the policy year, as defined in \u00a7 38.2-3205 or \u00a7 38.2-3209, whichever applies. Except as required by subdivision 2 of this subsection, such percentage:\n\t\t\ta. Shall be the same percentage for each policy year between the second policy anniversary and the later of (i) the fifth policy anniversary and (ii) the first policy anniversary at which there is available under the policy a cash surrender value in an amount, before including any paid-up additions and before deducting any indebtedness, of at least two-tenths 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; and\n\t\t\tb. Shall be such that no percentage after the later of the two policy anniversaries specified in subdivision 1 a of this subsection may apply to fewer than five consecutive policy years.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"3":{"id":254293,"text":"No basic cash value shall be less than the value that would be obtained if the adjusted premiums for the policy, as defined in &#xA7; 38.2-3205 or &#xA7; 38.2-3209, whichever applies, were substituted for the nonforfeiture factors in the calculation of the basic cash value.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"D"},"4":{"id":254294,"text":"All adjusted premiums and present values referred to in this section shall for a particular policy be calculated on the same mortality and interest bases used in demonstrating the policy&#8217;s compliance with the other sections of this article. The cash surrender values referred to in this section shall include any endowment benefits provided for by the policy.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"5":{"id":254295,"text":"Any cash surrender value available other than in the event of default in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment, shall be determined by a method consistent with the methods specified for determining the analogous minimum amounts in &#xA7;&#xA7; 38.2-3202 through 38.2-3204, 38.2-3209 and 38.2-3211. The amounts of any cash surrender values and of any paid-up nonforfeiture benefits granted in connection with additional benefits, such as those listed as B1 a through B1 f in &#xA7; 38.2-3211, shall conform with the principles of this section.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":14541,"edition_id":1,"name":"Standard Nonforfeiture Provisions for Life Insurance","identifier":"32","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:48:35","date_modified":"2026-06-26 03:48:35","permalink":{"id":214505,"object_type":"structure","relational_id":14541,"identifier":"32","token":"38.2\/32","url":"\/38.2\/32\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":78309,"structure_id":14541,"section_number":"38.2-3200","catch_line":"Nonforfeiture benefits and cash surrender values in life policies issued prior to operative date stated in \u00a7 38.2-3214","url":"\/38.2-3200\/","token":"38.2\/32\/38.2-3200","metadata":false},{"id":71133,"structure_id":14541,"section_number":"38.2-3201","catch_line":"Same; for industrial life policies","url":"\/38.2-3201\/","token":"38.2\/32\/38.2-3201","metadata":false},{"id":57831,"structure_id":14541,"section_number":"38.2-3202","catch_line":"Standard nonforfeiture law; required policy provisions","url":"\/38.2-3202\/","token":"38.2\/32\/38.2-3202","metadata":false},{"id":77891,"structure_id":14541,"section_number":"38.2-3203","catch_line":"Same; cash surrender value in case of default","url":"\/38.2-3203\/","token":"38.2\/32\/38.2-3203","metadata":false},{"id":79190,"structure_id":14541,"section_number":"38.2-3204","catch_line":"Same; present value of paid-up nonforfeiture benefits on default","url":"\/38.2-3204\/","token":"38.2\/32\/38.2-3204","metadata":false},{"id":61365,"structure_id":14541,"section_number":"38.2-3205","catch_line":"Same; calculation of adjusted premiums","url":"\/38.2-3205\/","token":"38.2\/32\/38.2-3205","metadata":false},{"id":75902,"structure_id":14541,"section_number":"38.2-3206","catch_line":"Same; tables used for calculations","url":"\/38.2-3206\/","token":"38.2\/32\/38.2-3206","metadata":false},{"id":59688,"structure_id":14541,"section_number":"38.2-3207","catch_line":"Same; use of new mortality table; ordinary policies","url":"\/38.2-3207\/","token":"38.2\/32\/38.2-3207","metadata":false},{"id":85809,"structure_id":14541,"section_number":"38.2-3208","catch_line":"Same; industrial policies","url":"\/38.2-3208\/","token":"38.2\/32\/38.2-3208","metadata":false},{"id":77084,"structure_id":14541,"section_number":"38.2-3209","catch_line":"Same; adjusted premiums for policies","url":"\/38.2-3209\/","token":"38.2\/32\/38.2-3209","metadata":false},{"id":80831,"structure_id":14541,"section_number":"38.2-3210","catch_line":"Same; life insurance providing future premium determination","url":"\/38.2-3210\/","token":"38.2\/32\/38.2-3210","metadata":false},{"id":60003,"structure_id":14541,"section_number":"38.2-3211","catch_line":"Same; other factors in calculations","url":"\/38.2-3211\/","token":"38.2\/32\/38.2-3211","metadata":false},{"id":70462,"structure_id":14541,"section_number":"38.2-3212","catch_line":"Same; policies issued on or after January 1, 1986","url":"\/38.2-3212\/","token":"38.2\/32\/38.2-3212","metadata":false},{"id":85497,"structure_id":14541,"section_number":"38.2-3213","catch_line":"Same; exemptions from application of certain sections","url":"\/38.2-3213\/","token":"38.2\/32\/38.2-3213","metadata":false},{"id":60385,"structure_id":14541,"section_number":"38.2-3214","catch_line":"Same; operative date","url":"\/38.2-3214\/","token":"38.2\/32\/38.2-3214","metadata":false},{"id":59064,"structure_id":14541,"section_number":"38.2-3215","catch_line":"Same; operative date for \u00a7 38.2-3207","url":"\/38.2-3215\/","token":"38.2\/32\/38.2-3215","metadata":false},{"id":68021,"structure_id":14541,"section_number":"38.2-3216","catch_line":"Same; operative date for \u00a7 38.2-3208","url":"\/38.2-3216\/","token":"38.2\/32\/38.2-3216","metadata":false},{"id":84594,"structure_id":14541,"section_number":"38.2-3217","catch_line":"Loan provisions in policies issued prior to operative date stated in \u00a7 38.2-3214","url":"\/38.2-3217\/","token":"38.2\/32\/38.2-3217","metadata":false},{"id":55994,"structure_id":14541,"section_number":"38.2-3218","catch_line":"Same; in policies subsequently issued","url":"\/38.2-3218\/","token":"38.2\/32\/38.2-3218","metadata":false},{"id":85068,"structure_id":14541,"section_number":"38.2-3219","catch_line":"Applicability","url":"\/38.2-3219\/","token":"38.2\/32\/38.2-3219","metadata":false},{"id":73664,"structure_id":14541,"section_number":"38.2-3220","catch_line":"Nonforfeiture requirements","url":"\/38.2-3220\/","token":"38.2\/32\/38.2-3220","metadata":false},{"id":64780,"structure_id":14541,"section_number":"38.2-3221","catch_line":"Minimum values","url":"\/38.2-3221\/","token":"38.2\/32\/38.2-3221","metadata":false},{"id":74981,"structure_id":14541,"section_number":"38.2-3222","catch_line":"Computation of present value","url":"\/38.2-3222\/","token":"38.2\/32\/38.2-3222","metadata":false},{"id":85744,"structure_id":14541,"section_number":"38.2-3223","catch_line":"Calculation of cash surrender values","url":"\/38.2-3223\/","token":"38.2\/32\/38.2-3223","metadata":false},{"id":84416,"structure_id":14541,"section_number":"38.2-3224","catch_line":"Calculation of paid-up annuity benefits","url":"\/38.2-3224\/","token":"38.2\/32\/38.2-3224","metadata":false},{"id":75346,"structure_id":14541,"section_number":"38.2-3225","catch_line":"Maturity date","url":"\/38.2-3225\/","token":"38.2\/32\/38.2-3225","metadata":false},{"id":78619,"structure_id":14541,"section_number":"38.2-3226","catch_line":"Disclosure of limited death benefits","url":"\/38.2-3226\/","token":"38.2\/32\/38.2-3226","metadata":false},{"id":80588,"structure_id":14541,"section_number":"38.2-3227","catch_line":"Inclusion of lapse of time considerations","url":"\/38.2-3227\/","token":"38.2\/32\/38.2-3227","metadata":false},{"id":64270,"structure_id":14541,"section_number":"38.2-3228","catch_line":"Proration of values; additional benefits","url":"\/38.2-3228\/","token":"38.2\/32\/38.2-3228","metadata":false},{"id":66707,"structure_id":14541,"section_number":"38.2-3229","catch_line":"Effective date","url":"\/38.2-3229\/","token":"38.2\/32\/38.2-3229","metadata":false}],"previous_section":{"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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3212\/","history_text":"<p>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 1 time. 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. That modification is as follows: in 1986, chapter 562.<\/p>","references":[{"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":57831,"section_number":"38.2-3202","catch_line":"Standard nonforfeiture law; required policy provisions","order_by":null,"url":"\/38.2-3202\/"},{"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":79190,"section_number":"38.2-3204","catch_line":"Same; present value of paid-up nonforfeiture benefits on default","order_by":null,"url":"\/38.2-3204\/"},{"id":61365,"section_number":"38.2-3205","catch_line":"Same; calculation of adjusted premiums","order_by":null,"url":"\/38.2-3205\/"},{"id":77084,"section_number":"38.2-3209","catch_line":"Same; adjusted premiums for policies","order_by":null,"url":"\/38.2-3209\/"},{"id":60003,"section_number":"38.2-3211","catch_line":"Same; other factors in calculations","order_by":null,"url":"\/38.2-3211\/"}],"permalink":{"id":214555,"object_type":"law","relational_id":70462,"identifier":"38.2-3212","token":"38.2\/32\/38.2-3212","url":"\/38.2-3212\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3212\/","token":"38.2\/32\/38.2-3212","dublin_core":{"Title":"Same; policies issued on or after January 1, 1986","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3212","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> This section, in addition to all other applicable sections of <span class=\"dictionary\">law<\/span>, shall apply to all policies issued on or after January 1, 1986. Any cash surrender value available under the policy in the event of <span class=\"dictionary\">default<\/span> in a premium payment due on any policy anniversary shall not differ by more than two-tenths percent of either (i) the amount of <span class=\"dictionary\">insurance<\/span>, if the <span class=\"dictionary\">insurance<\/span> is uniform in amount, or (ii) the average amount of <span class=\"dictionary\">insurance<\/span> at the beginning of each of the first ten policy years, from the sum of (i) the greater of zero and the basic cash value specified in this section and (ii) the present value of any existing paid-up additions less the amount of any indebtedness to the <span class=\"dictionary\">insurer<\/span> under the policy. <a id=\"paragraph-254290\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3212\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> The basic cash value shall equal the present value on that anniversary of the future guaranteed benefits that would have been provided for by the policy, excluding any existing paid-up additions and before deduction of any indebtedness to the <span class=\"dictionary\">insurer<\/span>, if there had been no <span class=\"dictionary\">default<\/span>, less the then present value of the nonforfeiture factors, as defined in this section, corresponding to premiums that would have fallen due on and after that anniversary. However, the effects on the basic cash value of supplemental life <span class=\"dictionary\">insurance<\/span> or annuity benefits or of family coverage, as described in &#xA7; <a class=\"law\" title=\"Same; cash surrender value in case of default\" href=\"\/38.2-3203\/\">38.2-3203<\/a> or &#xA7; <a class=\"law\" title=\"Same; calculation of adjusted premiums\" href=\"\/38.2-3205\/\">38.2-3205<\/a>, whichever applies, shall be the same as the effects specified in &#xA7; <a class=\"law\" title=\"Same; cash surrender value in case of default\" href=\"\/38.2-3203\/\">38.2-3203<\/a> or &#xA7; <a class=\"law\" title=\"Same; calculation of adjusted premiums\" href=\"\/38.2-3205\/\">38.2-3205<\/a>, whichever applies, on the cash surrender values defined in those sections. <a id=\"paragraph-254291\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3212\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> 1. The nonforfeiture factor for each policy year shall equal a percentage of the adjusted premium for the policy year, as defined in \u00a7&nbsp;<a class=\"law\" title=\"Same; calculation of adjusted premiums\" href=\"\/38.2-3205\/\">38.2-3205<\/a> or \u00a7&nbsp;<a class=\"law\" title=\"Same; adjusted premiums for policies\" href=\"\/38.2-3209\/\">38.2-3209<\/a>, whichever applies. Except as required by subdivision 2 of this subsection, such percentage:\n\t\t\ta. Shall be the same percentage for each policy year between the second policy anniversary and the later of (i) the fifth policy anniversary and (ii) the first policy anniversary at which there is available under the policy a cash surrender value in an amount, before including any paid-up additions and before deducting any indebtedness, of at least two-tenths percent of either the amount of <span class=\"dictionary\">insurance<\/span>, if the <span class=\"dictionary\">insurance<\/span> is uniform in amount, or the average amount of <span class=\"dictionary\">insurance<\/span> at the beginning of each of the first ten policy years; and\n\t\t\tb. Shall be such that no percentage after the later of the two policy anniversaries specified in subdivision 1 a of this subsection may apply to fewer than five consecutive policy years. <a id=\"paragraph-254292\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3212\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> No basic cash value shall be less than the value that would be obtained if the adjusted premiums for the policy, as defined in &#xA7; <a class=\"law\" title=\"Same; calculation of adjusted premiums\" href=\"\/38.2-3205\/\">38.2-3205<\/a> or &#xA7; <a class=\"law\" title=\"Same; adjusted premiums for policies\" href=\"\/38.2-3209\/\">38.2-3209<\/a>, whichever applies, were substituted for the nonforfeiture factors in the calculation of the basic cash value. <a id=\"paragraph-254293\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3212\/#C2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> All adjusted premiums and present values referred to in this section shall for a particular policy be calculated on the same mortality and interest bases used in demonstrating the policy&#8217;s compliance with the other sections of this article. The cash surrender values referred to in this section shall include any endowment benefits provided for by the policy. <a id=\"paragraph-254294\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3212\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> Any cash surrender value available other than in the event of <span class=\"dictionary\">default<\/span> in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit available under the policy in the event of <span class=\"dictionary\">default<\/span> in a premium payment, shall be determined by a method consistent with the methods specified for determining the analogous minimum amounts in &#xA7;&#xA7; <a class=\"law\" title=\"Standard nonforfeiture law; required policy provisions\" href=\"\/38.2-3202\/\">38.2-3202<\/a> through <a class=\"law\" title=\"Same; present value of paid-up nonforfeiture benefits on default\" href=\"\/38.2-3204\/\">38.2-3204<\/a>, <a class=\"law\" title=\"Same; adjusted premiums for policies\" href=\"\/38.2-3209\/\">38.2-3209<\/a> and <a class=\"law\" title=\"Same; other factors in calculations\" href=\"\/38.2-3211\/\">38.2-3211<\/a>. The amounts of any cash surrender values and of any paid-up nonforfeiture benefits granted in connection with additional benefits, such as those listed as B1 a through B1 f in &#xA7; <a class=\"law\" title=\"Same; other factors in calculations\" href=\"\/38.2-3211\/\">38.2-3211<\/a>, shall conform with the principles of this section. <a id=\"paragraph-254295\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/38.2-3212\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nSAME; POLICIES ISSUED ON OR AFTER JANUARY 1, 1986 (\u00a7 38.2-3212)\n\nA. This section, in addition to all other applicable sections of law, shall\napply to all policies issued on or after January 1, 1986. Any cash surrender\nvalue available under the policy in the event of default in a premium payment\ndue on any policy anniversary shall not differ by more than two-tenths percent\nof either (i) the amount of insurance, if the insurance is uniform in amount, or\n(ii) the average amount of insurance at the beginning of each of the first ten\npolicy years, from the sum of (i) the greater of zero and the basic cash value\nspecified in this section and (ii) the present value of any existing paid-up\nadditions less the amount of any indebtedness to the insurer under the policy.\n\nB. The basic cash value shall equal the present value on that anniversary of the\nfuture guaranteed benefits that would have been provided for by the policy,\nexcluding any existing paid-up additions and before deduction of any\nindebtedness to the insurer, if there had been no default, less the then present\nvalue of the nonforfeiture factors, as defined in this section, corresponding to\npremiums that would have fallen due on and after that anniversary. However, the\neffects on the basic cash value of supplemental life insurance or annuity\nbenefits or of family coverage, as described in &#xA7; 38.2-3203 or &#xA7;\n38.2-3205, whichever applies, shall be the same as the effects specified in\n&#xA7; 38.2-3203 or &#xA7; 38.2-3205, whichever applies, on the cash surrender\nvalues defined in those sections.\n\nC. 1. The nonforfeiture factor for each policy year shall equal a percentage of\nthe adjusted premium for the policy year, as defined in \u00a7 38.2-3205 or \u00a7\n38.2-3209, whichever applies. Except as required by subdivision 2 of this\nsubsection, such percentage:\n\t\t\ta. Shall be the same percentage for each policy year between the second\npolicy anniversary and the later of (i) the fifth policy anniversary and (ii)\nthe first policy anniversary at which there is available under the policy a cash\nsurrender value in an amount, before including any paid-up additions and before\ndeducting any indebtedness, of at least two-tenths percent of either the amount\nof insurance, if the insurance is uniform in amount, or the average amount of\ninsurance at the beginning of each of the first ten policy years; and\n\t\t\tb. Shall be such that no percentage after the later of the two policy\nanniversaries specified in subdivision 1 a of this subsection may apply to fewer\nthan five consecutive policy years.\n\n   2. No basic cash value shall be less than the value that would be obtained if\n   the adjusted premiums for the policy, as defined in &#xA7; 38.2-3205 or &#xA7;\n   38.2-3209, whichever applies, were substituted for the nonforfeiture factors\n   in the calculation of the basic cash value.\n\nD. All adjusted premiums and present values referred to in this section shall\nfor a particular policy be calculated on the same mortality and interest bases\nused in demonstrating the policy&#8217;s compliance with the other sections of\nthis article. The cash surrender values referred to in this section shall\ninclude any endowment benefits provided for by the policy.\n\nE. Any cash surrender value available other than in the event of default in a\npremium payment due on a policy anniversary, and the amount of any paid-up\nnonforfeiture benefit available under the policy in the event of default in a\npremium payment, shall be determined by a method consistent with the methods\nspecified for determining the analogous minimum amounts in &#xA7;&#xA7;\n38.2-3202 through 38.2-3204, 38.2-3209 and 38.2-3211. The amounts of any cash\nsurrender values and of any paid-up nonforfeiture benefits granted in connection\nwith additional benefits, such as those listed as B1 a through B1 f in &#xA7;\n38.2-3211, shall conform with the principles of this section.\n\nHISTORY: 1982, c. 228, \u00a7 38.1-466.1; 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}}