{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-4120.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-4120.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-4120.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-4120.html"}],"law_id":75009,"edition_id":1,"section_id":75009,"structure_id":16140,"section_number":"38.2-4120","catch_line":"Nonforfeiture benefits, cash surrender values, certificate loans and other options","history":"1968, c. 654, \u00a7 38.1-638.34; 1975, c. 262; 1986, c. 562.","full_text":"A\n\nA society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans, and any other options its laws permit. Certificates issued on and after June 28, 1968, must contain at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts or contracts of level term insurance for fifteen years or less expiring before age sixty-six.B\n\nFor certificates, other than those for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality Table, or any more recent table made applicable to life insurance companies, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than any excess of (1) over (2) as follows:1\n\nThe reserve under the certificate determined on the basis specified in the certificate; and2\n\nThe sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to 2 1\/2% of the face amount of the certificate, which, in the case of insurance on the lives of persons under the minimum age for adult membership, shall be the ultimate face amount of the certificate, if death benefits provided in the certificate are graded.C\n\nFor certificates issued on a substandard basis or for certificates with reserves computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted, including any accompanying pure endowment, may be computed upon the rates of mortality not greater than 130 percent of those shown by the mortality table specified in the certificate for the computation of the reserve.D\n\nFor certificates with reserves computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality Table, or any more recent table made applicable to life insurance companies, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of this Commonwealth applicable to life insurers issuing policies containing like insurance benefits based upon such tables.","order_by":null,"text":{"0":{"id":269435,"text":"A society may grant paid-up nonforfeiture benefits, cash surrender values, certificate loans, and any other options its laws permit. Certificates issued on and after June 28, 1968, must contain at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts or contracts of level term insurance for fifteen years or less expiring before age sixty-six.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":269436,"text":"For certificates, other than those for which reserves are computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality Table, or any more recent table made applicable to life insurance companies, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than any excess of (1) over (2) as follows:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":269437,"text":"The reserve under the certificate determined on the basis specified in the certificate; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":269438,"text":"The sum of any indebtedness to the society on the certificate, including interest due and accrued, and a surrender charge equal to 2 1\/2% of the face amount of the certificate, which, in the case of insurance on the lives of persons under the minimum age for adult membership, shall be the ultimate face amount of the certificate, if death benefits provided in the certificate are graded.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":269439,"text":"For certificates issued on a substandard basis or for certificates with reserves computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted, including any accompanying pure endowment, may be computed upon the rates of mortality not greater than 130 percent of those shown by the mortality table specified in the certificate for the computation of the reserve.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"5":{"id":269440,"text":"For certificates with reserves computed on the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality Table, or any more recent table made applicable to life insurance companies, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of this Commonwealth applicable to life insurers issuing policies containing like insurance benefits based upon such tables.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"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":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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-4120\/","history_text":"

This law was first created in 1968. The record of its establishment is cataloged in chapter 654 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 1968 \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 1975, chapter 262; in 1986, chapter 562.<\/p>","references":false,"refers_to":false,"permalink":{"id":216581,"object_type":"law","relational_id":75009,"identifier":"38.2-4120","token":"38.2\/41\/4\/38.2-4120","url":"\/38.2-4120\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-4120\/","token":"38.2\/41\/4\/38.2-4120","dublin_core":{"Title":"Nonforfeiture benefits, cash surrender values, certificate loans and other options","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-4120","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A society<\/span> may grant paid-up nonforfeiture benefits, cash surrender values, certificate<\/span> loans, and any other options its laws<\/span><\/span> permit. Certificates<\/span> issued on and after June 28, 1968, must contain at least one paid-up nonforfeiture benefit, except in the case of pure endowment, annuity or reversionary annuity contracts, reducing term insurance contracts<\/span> or contracts of level term insurance for fifteen years or less expiring before age sixty-six. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For certificates<\/span>, other than those for which reserves are computed on the Commissioners<\/span> 1941 Standard Ordinary Mortality Table, the Commissioners<\/span> 1941 Standard Industrial Table or the Commissioners<\/span> 1958 Standard Ordinary Mortality Table, or any more recent table made applicable to life insurance companies, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than any excess of (1) over (2) as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The reserve under the certificate<\/span> determined on the basis specified in the certificate<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The sum of any indebtedness to the society<\/span> on the certificate<\/span>, including interest due and accrued, and a surrender charge equal to 2 1\/2% of the face amount of the certificate<\/span>, which, in the case of insurance on the lives of persons<\/span> under the minimum age for adult membership, shall be the ultimate face amount of the certificate<\/span>, if death benefits provided in the certificate<\/span> are graded. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> For certificates<\/span> issued on a substandard basis or for certificates<\/span> with reserves computed upon the American Men Ultimate Table of Mortality, the term of any extended insurance benefit granted, including any accompanying pure endowment, may be computed upon the rates<\/span><\/span> of mortality not greater than 130 percent of those shown by the mortality table specified in the certificate<\/span> for the computation of the reserve. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> For certificates<\/span> with reserves computed on the Commissioners<\/span> 1941 Standard Ordinary Mortality Table, the Commissioners<\/span> 1941 Standard Industrial Table or the Commissioners<\/span> 1958 Standard Ordinary Mortality Table, or any more recent table made applicable to life insurance companies, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option granted shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws<\/span><\/span> of this Commonwealth applicable to life insurers<\/span> issuing policies containing like insurance benefits based upon such tables. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNONFORFEITURE BENEFITS, CASH SURRENDER VALUES, CERTIFICATE LOANS AND OTHER\nOPTIONS (\u00a7 38.2-4120)\n\nA. A society may grant paid-up nonforfeiture benefits, cash surrender values,\ncertificate loans, and any other options its laws permit. Certificates issued on\nand after June 28, 1968, must contain at least one paid-up nonforfeiture\nbenefit, except in the case of pure endowment, annuity or reversionary annuity\ncontracts, reducing term insurance contracts or contracts of level term\ninsurance for fifteen years or less expiring before age sixty-six.\n\nB. For certificates, other than those for which reserves are computed on the\nCommissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941\nStandard Industrial Table or the Commissioners 1958 Standard Ordinary Mortality\nTable, or any more recent table made applicable to life insurance companies, the\nvalue of every paid-up nonforfeiture benefit and the amount of any cash\nsurrender value, loan or other option granted shall not be less than any excess\nof (1) over (2) as follows:\n\n 1. The reserve under the certificate determined on the basis specified in the\n certificate; and\n\n 2. The sum of any indebtedness to the society on the certificate, including\n interest due and accrued, and a surrender charge equal to 2 1\/2% of the face\n amount of the certificate, which, in the case of insurance on the lives of\n persons under the minimum age for adult membership, shall be the ultimate face\n amount of the certificate, if death benefits provided in the certificate are\n graded.\n\nC. For certificates issued on a substandard basis or for certificates with\nreserves computed upon the American Men Ultimate Table of Mortality, the term of\nany extended insurance benefit granted, including any accompanying pure\nendowment, may be computed upon the rates of mortality not greater than 130\npercent of those shown by the mortality table specified in the certificate for\nthe computation of the reserve.\n\nD. For certificates with reserves computed on the Commissioners 1941 Standard\nOrdinary Mortality Table, the Commissioners 1941 Standard Industrial Table or\nthe Commissioners 1958 Standard Ordinary Mortality Table, or any more recent\ntable made applicable to life insurance companies, every paid-up nonforfeiture\nbenefit and the amount of any cash surrender value, loan or other option granted\nshall not be less than the corresponding amount ascertained in accordance with\nthe provisions of the laws of this Commonwealth applicable to life insurers\nissuing policies containing like insurance benefits based upon such tables.\n\nHISTORY: 1968, c. 654, \u00a7 38.1-638.34; 1975, c. 262; 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}}