                                 CODE OF VIRGINIA

SAME; INDUSTRIAL POLICIES (§ 38.2-3208)

The provisions of this section shall not apply to industrial policies issued on
or after the operative date as defined in § 38.2-3209. For industrial policies
issued on or after the operative date of § 38.2-3216, all adjusted premiums and
present values referred to in §§ 38.2-3202 through 38.2-3205 shall be
calculated on the basis of the Commissioners 1961 Standard Industrial Mortality
Table and the rate of interest specified in the policy for calculating cash
surrender values and paid-up nonforfeiture benefits. However, the rate of
interest shall not exceed (i) 3 1/2 percent per year for policies issued before
July 1, 1975, (ii) four percent per year for policies issued on or after July 1,
1975, and prior to July 1, 1979, and (iii) 5 1/2 percent per year for policies
issued on or after July 1, 1979. Notwithstanding the foregoing provisions of
this section, the rate of interest for any single premium whole life or
endowment insurance policy issued on or after July 1, 1979, may be a rate not
exceeding 6 1/2 percent per year. In calculating the present value of any
paid-up term insurance with any accompanying pure endowment offered as a
nonforfeiture benefit, the rates of mortality assumed may be not more than those
shown in the Commissioners 1961 Industrial Extended Term Insurance Table. For
insurance issued on a substandard basis, the calculations of any adjusted
premiums and present values may be based on any other table of mortality
specified by the insurer and approved by the Commission.

HISTORY: 1962, c. 562, § 38.1-465.2; 1975, c. 215; 1979, c. 437; 1982, c. 228;
1986, c. 562.