{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4119.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4119.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4119.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4119.html"}],"law_id":81281,"edition_id":1,"section_id":81281,"structure_id":16140,"section_number":"38.2-4119","catch_line":"The benefit contract","history":"Code 1950, \u00a7\u00a7 38-280, 38-282, 38-286, 38-293, 38.1-596, 38.1-598, 38.1-602, 38.1-609; 1952, c. 317, \u00a7\u00a7 38.1-638.28 through 38.1-638.30, 38.1-638.35; 1964, c. 355; 1968, c. 654; 1972, cc. 530, 825; 1986, c. 562.","full_text":"A\n\nEvery society authorized to do business in this Commonwealth shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided thereby. The certificate, together with any attached riders or endorsements, the laws of the society, the application for membership, the application for insurance and declaration of insurability, if any, signed by the applicant, and all amendments to each, shall constitute the benefit contract, as of the date of issuance, between the society and the owner, and the certificate shall so state. A copy of the application for insurance and declaration of insurability, if any, shall be endorsed upon or attached to the certificate. All statements on the application shall be representations and not warranties. Any waiver of this provision shall be void.B\n\nAny changes, additions or amendments to the laws of the society duly made or enacted subsequent to the issuance of the certificate, shall bind the owner and the beneficiaries, and shall govern and control the benefit contract in all respects the same as though such changes, additions or amendments had been made prior to and were in force at the time of the application for insurance, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the owner as of the date of issuance.C\n\nAny person upon whose life a benefit contract is issued prior to attaining the age of majority shall be bound by the terms of the application and certificate and by all the laws and rules of the society to the same extent as though the age of majority had been attained at the time of application.D\n\nA society shall provide in its laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that the owner shall pay to the society his equitable proportion of such deficiency as ascertained by its board, and that if the payment is not made, either (i) it shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or (ii) in lieu of or in combination with (i), the owner may accept a proportionate reduction in benefits under the certificate. The society may specify the manner of the election and which alternative is to be presumed if no election is made.E\n\nCopies of any documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received in evidence of the terms and conditions thereof.F\n\nNo certificate shall be delivered or issued for delivery in this Commonwealth unless a copy of the form has been filed with and approved by the Commission in the manner provided for in § 38.2-316. Every life, accident, health, or disability insurance certificate and every annuity certificate issued on or after July 1, 1986, shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life insurers in this Commonwealth, except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The certificate shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society’s laws or rules in force at the time of issuance of the certificate which, if violated, will result in the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member, the certificate shall also contain a provision that any member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material misrepresentation in the application for membership or insurance, shall have the privilege of maintaining the certificate in force by continuing payment of the required premium.G\n\nBenefit contracts issued on the lives of persons below the society’s minimum age for adult membership may provide for transfer of control or ownership to the insured at an age specified in the certificate. A society may require approval of an application for membership in order to effect this transfer, and may provide in all other respects for the regulation, government and control of such certificates and all rights, obligations and liabilities incident thereto. Ownership rights prior to such transfer shall be specified in the certificate.H\n\nA society may specify the terms and conditions on which benefit contracts may be assigned.","order_by":null,"text":{"0":{"id":291312,"text":"Every society authorized to do business in this Commonwealth shall issue to each owner of a benefit contract a certificate specifying the amount of benefits provided thereby. The certificate, together with any attached riders or endorsements, the laws of the society, the application for membership, the application for insurance and declaration of insurability, if any, signed by the applicant, and all amendments to each, shall constitute the benefit contract, as of the date of issuance, between the society and the owner, and the certificate shall so state. A copy of the application for insurance and declaration of insurability, if any, shall be endorsed upon or attached to the certificate. All statements on the application shall be representations and not warranties. Any waiver of this provision shall be void.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":291313,"text":"Any changes, additions or amendments to the laws of the society duly made or enacted subsequent to the issuance of the certificate, shall bind the owner and the beneficiaries, and shall govern and control the benefit contract in all respects the same as though such changes, additions or amendments had been made prior to and were in force at the time of the application for insurance, except that no change, addition or amendment shall destroy or diminish benefits which the society contracted to give the owner as of the date of issuance.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":291314,"text":"Any person upon whose life a benefit contract is issued prior to attaining the age of majority shall be bound by the terms of the application and certificate and by all the laws and rules of the society to the same extent as though the age of majority had been attained at the time of application.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":291315,"text":"A society shall provide in its laws that if its reserves as to all or any class of certificates become impaired, its board of directors or corresponding body may require that the owner shall pay to the society his equitable proportion of such deficiency as ascertained by its board, and that if the payment is not made, either (i) it shall stand as an indebtedness against the certificate and draw interest not to exceed the rate specified for certificate loans under the certificates; or (ii) in lieu of or in combination with (i), the owner may accept a proportionate reduction in benefits under the certificate. The society may specify the manner of the election and which alternative is to be presumed if no election is made.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":291316,"text":"Copies of any documents mentioned in this section, certified by the secretary or corresponding officer of the society, shall be received in evidence of the terms and conditions thereof.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":291317,"text":"No certificate shall be delivered or issued for delivery in this Commonwealth unless a copy of the form has been filed with and approved by the Commission in the manner provided for in § 38.2-316. Every life, accident, health, or disability insurance certificate and every annuity certificate issued on or after July 1, 1986, shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life insurers in this Commonwealth, except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The certificate shall also contain a provision stating the amount of premiums which are payable under the certificate and a provision reciting or setting forth the substance of any sections of the society’s laws or rules in force at the time of issuance of the certificate which, if violated, will result in the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or suspension of a member, the certificate shall also contain a provision that any member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material misrepresentation in the application for membership or insurance, shall have the privilege of maintaining the certificate in force by continuing payment of the required premium.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":291318,"text":"Benefit contracts issued on the lives of persons below the society’s minimum age for adult membership may provide for transfer of control or ownership to the insured at an age specified in the certificate. A society may require approval of an application for membership in order to effect this transfer, and may provide in all other respects for the regulation, government and control of such certificates and all rights, obligations and liabilities incident thereto. Ownership rights prior to such transfer shall be specified in the certificate.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":291319,"text":"A society may specify the terms and conditions on which benefit contracts may be assigned.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"ancestry":[{"id":16140,"edition_id":1,"name":"Contractual Benefits","identifier":"4","label":"article","depth":3,"order_by":1,"parent_id":13775,"metadata":{},"date_created":"2026-06-26 04:07:20","date_modified":"2026-06-26 04:07:20","permalink":{"id":216563,"object_type":"structure","relational_id":16140,"identifier":"4","token":"38.2\/41\/4","url":"\/38.2\/41\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13775,"edition_id":1,"name":"Fraternal Benefit Societies","identifier":"41","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:45:51","date_modified":"2026-06-26 03:45:51","permalink":{"id":216491,"object_type":"structure","relational_id":13775,"identifier":"41","token":"38.2\/41","url":"\/38.2\/41\/","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":64367,"structure_id":16140,"section_number":"38.2-4116","catch_line":"Benefits","url":"\/38.2-4116\/","token":"38.2\/41\/4\/38.2-4116","metadata":false},{"id":69177,"structure_id":16140,"section_number":"38.2-4117","catch_line":"Beneficiaries","url":"\/38.2-4117\/","token":"38.2\/41\/4\/38.2-4117","metadata":false},{"id":64076,"structure_id":16140,"section_number":"38.2-4118","catch_line":"Benefits not attachable","url":"\/38.2-4118\/","token":"38.2\/41\/4\/38.2-4118","metadata":false},{"id":81281,"structure_id":16140,"section_number":"38.2-4119","catch_line":"The benefit contract","url":"\/38.2-4119\/","token":"38.2\/41\/4\/38.2-4119","metadata":false},{"id":75009,"structure_id":16140,"section_number":"38.2-4120","catch_line":"Nonforfeiture benefits, cash surrender values, certificate loans and other options","url":"\/38.2-4120\/","token":"38.2\/41\/4\/38.2-4120","metadata":false}],"previous_section":{"id":64076,"structure_id":16140,"section_number":"38.2-4118","catch_line":"Benefits not attachable","url":"\/38.2-4118\/","token":"38.2\/41\/4\/38.2-4118","metadata":false},"next_section":{"id":75009,"structure_id":16140,"section_number":"38.2-4120","catch_line":"Nonforfeiture benefits, cash surrender values, certificate loans and other options","url":"\/38.2-4120\/","token":"38.2\/41\/4\/38.2-4120","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4119\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1952, chapter 317; in 1964, chapter 355; in 1968, chapter 654; in 1972, chapters 530 and 825; in 1986, chapter 562.<\/p>","references":[{"id":70287,"section_number":"38.2-4103","catch_line":"Definitions","order_by":null,"url":"\/38.2-4103\/"},{"id":60145,"section_number":"38.2-4122","catch_line":"Funds","order_by":null,"url":"\/38.2-4122\/"}],"refers_to":[{"id":60466,"section_number":"38.2-316","catch_line":"Policy forms to be filed with Commission; notice of approval or disapproval; exceptions","order_by":null,"url":"\/38.2-316\/"}],"permalink":{"id":216577,"object_type":"law","relational_id":81281,"identifier":"38.2-4119","token":"38.2\/41\/4\/38.2-4119","url":"\/38.2-4119\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4119\/","token":"38.2\/41\/4\/38.2-4119","dublin_core":{"Title":"The benefit contract","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4119","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Every society<\/span> authorized to do business in this Commonwealth shall issue<\/span> to each owner of a benefit contract<\/span> a certificate<\/span> specifying the amount of benefits provided thereby. The certificate<\/span>, together with any attached riders or endorsements, the laws<\/span><\/span> of the society<\/span>, the application for membership, the application for insurance<\/span> and declaration of insurability, if any, signed by the applicant, and all amendments to each, shall constitute the benefit contract<\/span>, as of the date of issuance, between the society<\/span> and the owner, and the certificate<\/span> shall so state<\/span>. A copy of the application for insurance<\/span> and declaration of insurability, if any, shall be endorsed upon or attached to the certificate<\/span>. All statements on the application shall be representations and not warranties. Any waiver<\/span> of this provision shall be void. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any changes, additions or amendments to the laws<\/span><\/span> of the society<\/span> duly made or enacted subsequent to the issuance of the certificate<\/span>, shall bind the owner and the beneficiaries, and shall govern and control the benefit contract<\/span> in all respects the same as though such changes, additions or amendments had been made prior to and were in force at the time of the application for insurance<\/span>, except that no change, addition or amendment shall destroy or diminish benefits which the society<\/span> contracted to give the owner as of the date of issuance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any person<\/span> upon whose life a benefit contract<\/span> is issued prior to attaining the age of majority shall be bound by the terms of the application and certificate<\/span> and by all the laws<\/span><\/span> and rules<\/span> of the society<\/span> to the same extent as though the age of majority had been attained at the time of application. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A society<\/span> shall provide in its laws<\/span><\/span> that if its reserves as to all or any class of certificates<\/span> become impaired, its board of directors or corresponding body may require that the owner shall pay to the society<\/span> his equitable<\/span> proportion of such deficiency as ascertained by its board, and that if the payment is not made, either (i) it shall stand as an indebtedness against the certificate<\/span> and draw interest not to exceed the rate<\/span> specified for certificate<\/span> loans under the certificates<\/span>; or (ii) in lieu of or in combination with (i), the owner may accept a proportionate reduction in benefits under the certificate<\/span>. The society<\/span> may specify the manner of the election and which alternative is to be presumed if no election is made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Copies of any documents mentioned in this section, certified by the secretary or corresponding officer of the society<\/span>, shall be received in evidence<\/span> of the terms and conditions thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> No certificate<\/span> shall be delivered or issued for delivery in this Commonwealth unless a copy of the form has been filed with and approved by the Commission<\/span> in the manner provided for in § 38.2-316<\/a>. Every life, accident, health, or disability insurance<\/span> certificate<\/span> and every annuity certificate<\/span> issued on or after July 1, 1986, shall meet the standard contract provision requirements not inconsistent with this chapter for like policies issued by life insurers<\/span> in this Commonwealth, except that a society<\/span> may provide for a grace period for payment of premiums<\/span> of one full month in its certificates<\/span>. The certificate<\/span> shall also contain a provision stating the amount of premiums<\/span> which are payable under the certificate<\/span> and a provision reciting or setting forth the substance of any sections of the society<\/span>’s laws<\/span><\/span> or rules<\/span> in force at the time of issuance of the certificate<\/span> which, if violated, will result in the termination or reduction of benefits payable under the certificate<\/span>. If the laws<\/span><\/span> of the society<\/span> provide for expulsion or suspension of a member, the certificate<\/span> shall also contain a provision that any member so expelled or suspended, except for nonpayment of a premium or within the contestable period for material<\/span> misrepresentation in the application for membership or insurance<\/span>, shall have the privilege<\/span> of maintaining the certificate<\/span> in force by continuing payment of the required premium. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Benefit contracts<\/span> issued on the lives of persons<\/span> below the society<\/span>’s minimum age for adult membership may provide for transfer of control or ownership to the insured at an age specified in the certificate<\/span>. A society<\/span> may require approval of an application for membership in order<\/span> to effect this transfer, and may provide in all other respects for the regulation, government and control of such certificates<\/span> and all rights, obligations and liabilities incident thereto. Ownership rights prior to such transfer shall be specified in the certificate<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> A society<\/span> may specify the terms and conditions on which benefit contracts<\/span> may be assigned. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTHE BENEFIT CONTRACT (\u00a7 38.2-4119)\n\nA. Every society authorized to do business in this Commonwealth shall issue to\neach owner of a benefit contract a certificate specifying the amount of benefits\nprovided thereby. The certificate, together with any attached riders or\nendorsements, the laws of the society, the application for membership, the\napplication for insurance and declaration of insurability, if any, signed by the\napplicant, and all amendments to each, shall constitute the benefit contract, as\nof the date of issuance, between the society and the owner, and the certificate\nshall so state. A copy of the application for insurance and declaration of\ninsurability, if any, shall be endorsed upon or attached to the certificate. All\nstatements on the application shall be representations and not warranties. Any\nwaiver of this provision shall be void.\n\nB. Any changes, additions or amendments to the laws of the society duly made or\nenacted subsequent to the issuance of the certificate, shall bind the owner and\nthe beneficiaries, and shall govern and control the benefit contract in all\nrespects the same as though such changes, additions or amendments had been made\nprior to and were in force at the time of the application for insurance, except\nthat no change, addition or amendment shall destroy or diminish benefits which\nthe society contracted to give the owner as of the date of issuance.\n\nC. Any person upon whose life a benefit contract is issued prior to attaining\nthe age of majority shall be bound by the terms of the application and\ncertificate and by all the laws and rules of the society to the same extent as\nthough the age of majority had been attained at the time of application.\n\nD. A society shall provide in its laws that if its reserves as to all or any\nclass of certificates become impaired, its board of directors or corresponding\nbody may require that the owner shall pay to the society his equitable\nproportion of such deficiency as ascertained by its board, and that if the\npayment is not made, either (i) it shall stand as an indebtedness against the\ncertificate and draw interest not to exceed the rate specified for certificate\nloans under the certificates; or (ii) in lieu of or in combination with (i), the\nowner may accept a proportionate reduction in benefits under the certificate.\nThe society may specify the manner of the election and which alternative is to\nbe presumed if no election is made.\n\nE. Copies of any documents mentioned in this section, certified by the secretary\nor corresponding officer of the society, shall be received in evidence of the\nterms and conditions thereof.\n\nF. No certificate shall be delivered or issued for delivery in this Commonwealth\nunless a copy of the form has been filed with and approved by the Commission in\nthe manner provided for in § 38.2-316. Every life, accident, health, or\ndisability insurance certificate and every annuity certificate issued on or\nafter July 1, 1986, shall meet the standard contract provision requirements not\ninconsistent with this chapter for like policies issued by life insurers in this\nCommonwealth, except that a society may provide for a grace period for payment\nof premiums of one full month in its certificates. The certificate shall also\ncontain a provision stating the amount of premiums which are payable under the\ncertificate and a provision reciting or setting forth the substance of any\nsections of the society’s laws or rules in force at the time of issuance\nof the certificate which, if violated, will result in the termination or\nreduction of benefits payable under the certificate. If the laws of the society\nprovide for expulsion or suspension of a member, the certificate shall also\ncontain a provision that any member so expelled or suspended, except for\nnonpayment of a premium or within the contestable period for material\nmisrepresentation in the application for membership or insurance, shall have the\nprivilege of maintaining the certificate in force by continuing payment of the\nrequired premium.\n\nG. Benefit contracts issued on the lives of persons below the society’s\nminimum age for adult membership may provide for transfer of control or\nownership to the insured at an age specified in the certificate. A society may\nrequire approval of an application for membership in order to effect this\ntransfer, and may provide in all other respects for the regulation, government\nand control of such certificates and all rights, obligations and liabilities\nincident thereto. Ownership rights prior to such transfer shall be specified in\nthe certificate.\n\nH. A society may specify the terms and conditions on which benefit contracts may\nbe assigned.\n\nHISTORY: Code 1950, \u00a7\u00a7 38-280, 38-282, 38-286, 38-293, 38.1-596, 38.1-598,\n38.1-602, 38.1-609; 1952, c. 317, \u00a7\u00a7 38.1-638.28 through 38.1-638.30,\n38.1-638.35; 1964, c. 355; 1968, c. 654; 1972, cc. 530, 825; 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}}