{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3220.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3220.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3220.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3220.html"}],"law_id":73664,"edition_id":1,"section_id":73664,"structure_id":14541,"section_number":"38.2-3220","catch_line":"Nonforfeiture requirements","history":"1979, c. 437, \u00a7 38.1-470.1; 1986, c. 562; 2004, c. 313.","full_text":"A\n\nFor contracts issued on or after the operative date as defined in \u00a7 38.2-3229, no contract of annuity, except as stated in \u00a7 38.2-3219, shall be delivered or issued for delivery in this Commonwealth unless it contains in substance the following provisions and statements, or corresponding provisions and statements that in the opinion of the Commission are at least as favorable to the contract holder, upon cessation of payment of consideration under the contract:1\n\nThat upon cessation of payment of considerations under a contract, or upon the written request of the contract holder, the insurer shall grant a paid-up annuity benefit on a plan stipulated in the contract of the value specified in §§ 38.2-3222 through 38.2-3225 and 38.2-3227.2\n\nIf a contract provides for a lump sum settlement at maturity or at any other time, a provision that upon surrender of the contract at or before the beginning of any annuity payments, the insurer shall pay instead of any paid-up annuity benefits a cash surrender benefit of the amount specified in §§ 38.2-3222, 38.2-3223, 38.2-3225 and 38.2-3227. The insurer may reserve the right to defer the payment of the cash surrender benefit for up to six months after demand for payment with surrender of the contract after making written request and receiving the written approval of the Commission. The request shall address the necessity and equitability to all contract holders of the deferral.3\n\nA statement of the mortality table and interest rates used in calculating any minimum paid-up annuity, cash surrender or death benefits that are guaranteed under the contract, together with sufficient information to determine the amounts of those benefits.4\n\nThat any paid-up annuity, cash surrender or death benefits that may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of how the existence of any additional amounts credited by the insurer to the contract, any indebtedness to the insurer on the contract or any prior withdrawals from or partial surrenders of the contract affects the benefits.B\n\nNotwithstanding the requirements of this subsection, any deferred annuity contract may provide that if no considerations have been received under a contract for a period of two full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid prior to that period would be less than $20 monthly, the insurer may at its option terminate the contract by payment in cash of the then present value of the portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit. This payment shall relieve the insurer of any further obligation under the contract.","order_by":null,"text":{"0":{"id":264935,"text":"For contracts issued on or after the operative date as defined in \u00a7 38.2-3229, no contract of annuity, except as stated in \u00a7 38.2-3219, shall be delivered or issued for delivery in this Commonwealth unless it contains in substance the following provisions and statements, or corresponding provisions and statements that in the opinion of the Commission are at least as favorable to the contract holder, upon cessation of payment of consideration under the contract:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":264936,"text":"That upon cessation of payment of considerations under a contract, or upon the written request of the contract holder, the insurer shall grant a paid-up annuity benefit on a plan stipulated in the contract of the value specified in §§ 38.2-3222 through 38.2-3225 and 38.2-3227.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":264937,"text":"If a contract provides for a lump sum settlement at maturity or at any other time, a provision that upon surrender of the contract at or before the beginning of any annuity payments, the insurer shall pay instead of any paid-up annuity benefits a cash surrender benefit of the amount specified in §§ 38.2-3222, 38.2-3223, 38.2-3225 and 38.2-3227. The insurer may reserve the right to defer the payment of the cash surrender benefit for up to six months after demand for payment with surrender of the contract after making written request and receiving the written approval of the Commission. The request shall address the necessity and equitability to all contract holders of the deferral.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":264938,"text":"A statement of the mortality table and interest rates used in calculating any minimum paid-up annuity, cash surrender or death benefits that are guaranteed under the contract, together with sufficient information to determine the amounts of those benefits.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":264939,"text":"That any paid-up annuity, cash surrender or death benefits that may be available under the contract are not less than the minimum benefits required by any statute of the state in which the contract is delivered and an explanation of how the existence of any additional amounts credited by the insurer to the contract, any indebtedness to the insurer on the contract or any prior withdrawals from or partial surrenders of the contract affects the benefits.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":264940,"text":"Notwithstanding the requirements of this subsection, any deferred annuity contract may provide that if no considerations have been received under a contract for a period of two full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract arising from considerations paid prior to that period would be less than $20 monthly, the insurer may at its option terminate the contract by payment in cash of the then present value of the portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit. This payment shall relieve the insurer of any further obligation under the contract.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3220\/","history_text":"

This law was first created in 1979. The record of its establishment is cataloged in chapter 437 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 1979 \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 2004, chapter 313<\/a>.<\/p>","references":[{"id":85068,"section_number":"38.2-3219","catch_line":"Applicability","order_by":null,"url":"\/38.2-3219\/"}],"refers_to":[{"id":85068,"section_number":"38.2-3219","catch_line":"Applicability","order_by":null,"url":"\/38.2-3219\/"},{"id":74981,"section_number":"38.2-3222","catch_line":"Computation of present value","order_by":null,"url":"\/38.2-3222\/"},{"id":85744,"section_number":"38.2-3223","catch_line":"Calculation of cash surrender values","order_by":null,"url":"\/38.2-3223\/"},{"id":75346,"section_number":"38.2-3225","catch_line":"Maturity date","order_by":null,"url":"\/38.2-3225\/"},{"id":80588,"section_number":"38.2-3227","catch_line":"Inclusion of lapse of time considerations","order_by":null,"url":"\/38.2-3227\/"},{"id":66707,"section_number":"38.2-3229","catch_line":"Effective date","order_by":null,"url":"\/38.2-3229\/"}],"permalink":{"id":214587,"object_type":"law","relational_id":73664,"identifier":"38.2-3220","token":"38.2\/32\/38.2-3220","url":"\/38.2-3220\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3220\/","token":"38.2\/32\/38.2-3220","dublin_core":{"Title":"Nonforfeiture requirements","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3220","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> For contracts<\/span> issued on or after the operative date as defined in \u00a7 38.2-3229<\/a>, no contract<\/span> of annuity, except as stated in \u00a7 38.2-3219<\/a>, shall be delivered or issued for delivery in this Commonwealth unless it contains in substance the following provisions and statements, or corresponding provisions and statements that in the opinion<\/span> of the Commission<\/span> are at least as favorable to the contract<\/span> holder, upon cessation of payment of consideration under the contract<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> That upon cessation of payment of considerations under a contract<\/span>, or upon the written request of the contract<\/span> holder, the insurer<\/span> shall grant a paid-up annuity benefit on a plan stipulated in the contract<\/span> of the value specified in §§ 38.2-3222<\/a> through 38.2-3225<\/a> and 38.2-3227<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If a contract<\/span> provides for a lump sum settlement<\/span> at maturity or at any other time, a provision that upon surrender of the contract<\/span> at or before the beginning of any annuity payments, the insurer<\/span> shall pay instead of any paid-up annuity benefits a cash surrender benefit of the amount specified in §§ 38.2-3222<\/a>, 38.2-3223<\/a>, 38.2-3225<\/a> and 38.2-3227<\/a>. The insurer<\/span> may reserve the right to defer the payment of the cash surrender benefit for up to six months after demand for payment with surrender of the contract<\/span> after making written request and receiving the written approval of the Commission<\/span>. The request shall address the necessity and equitability to all contract<\/span> holders of the deferral. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A statement of the mortality table and interest rates<\/span><\/span> used in calculating any minimum paid-up annuity, cash surrender or death benefits that are guaranteed under the contract<\/span>, together with sufficient information to determine the amounts of those benefits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> That any paid-up annuity, cash surrender or death benefits that may be available under the contract<\/span> are not less than the minimum benefits required by any statute<\/span> of the state<\/span> in which the contract<\/span> is delivered and an explanation of how the existence of any additional amounts credited by the insurer<\/span> to the contract<\/span>, any indebtedness to the insurer<\/span> on the contract<\/span> or any prior withdrawals from or partial surrenders of the contract<\/span> affects the benefits. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding the requirements of this subsection, any deferred annuity contract<\/span> may provide that if no considerations have been received under a contract<\/span> for a period of two full years and the portion of the paid-up annuity benefit at maturity on the plan stipulated in the contract<\/span> arising from considerations paid prior to that period would be less than $20 monthly, the insurer<\/span> may at its option terminate the contract<\/span> by payment in cash of the then present value of the portion of the paid-up annuity benefit, calculated on the basis of the mortality table, if any, and interest rate<\/span> specified in the contract<\/span> for determining the paid-up annuity benefit. This payment shall relieve the insurer<\/span> of any further obligation under the contract<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNONFORFEITURE REQUIREMENTS (\u00a7 38.2-3220)\n\nA. For contracts issued on or after the operative date as defined in \u00a7\n38.2-3229, no contract of annuity, except as stated in \u00a7 38.2-3219, shall be\ndelivered or issued for delivery in this Commonwealth unless it contains in\nsubstance the following provisions and statements, or corresponding provisions\nand statements that in the opinion of the Commission are at least as favorable\nto the contract holder, upon cessation of payment of consideration under the\ncontract:\n\n 1. That upon cessation of payment of considerations under a contract, or upon\n the written request of the contract holder, the insurer shall grant a paid-up\n annuity benefit on a plan stipulated in the contract of the value specified in\n §§ 38.2-3222 through 38.2-3225 and 38.2-3227.\n\n 2. If a contract provides for a lump sum settlement at maturity or at any\n other time, a provision that upon surrender of the contract at or before the\n beginning of any annuity payments, the insurer shall pay instead of any\n paid-up annuity benefits a cash surrender benefit of the amount specified in\n §§ 38.2-3222, 38.2-3223, 38.2-3225 and 38.2-3227. The insurer may\n reserve the right to defer the payment of the cash surrender benefit for up to\n six months after demand for payment with surrender of the contract after\n making written request and receiving the written approval of the Commission.\n The request shall address the necessity and equitability to all contract\n holders of the deferral.\n\n 3. A statement of the mortality table and interest rates used in calculating\n any minimum paid-up annuity, cash surrender or death benefits that are\n guaranteed under the contract, together with sufficient information to\n determine the amounts of those benefits.\n\n 4. That any paid-up annuity, cash surrender or death benefits that may be\n available under the contract are not less than the minimum benefits required\n by any statute of the state in which the contract is delivered and an\n explanation of how the existence of any additional amounts credited by the\n insurer to the contract, any indebtedness to the insurer on the contract or\n any prior withdrawals from or partial surrenders of the contract affects the\n benefits.\n\nB. Notwithstanding the requirements of this subsection, any deferred annuity\ncontract may provide that if no considerations have been received under a\ncontract for a period of two full years and the portion of the paid-up annuity\nbenefit at maturity on the plan stipulated in the contract arising from\nconsiderations paid prior to that period would be less than $20 monthly, the\ninsurer may at its option terminate the contract by payment in cash of the then\npresent value of the portion of the paid-up annuity benefit, calculated on the\nbasis of the mortality table, if any, and interest rate specified in the\ncontract for determining the paid-up annuity benefit. This payment shall relieve\nthe insurer of any further obligation under the contract.\n\nHISTORY: 1979, c. 437, \u00a7 38.1-470.1; 1986, c. 562; 2004, c. 313.","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}}