                                 CODE OF VIRGINIA

SAME; CASH SURRENDER VALUE IN CASE OF DEFAULT (§ 38.2-3203)

A. Any cash surrender value available under any life insurance policy issued on
or after the operative date stated in &#xA7; 38.2-3214 in the event of default
in a premium payment due on any policy anniversary, whether or not required by
&#xA7; 38.2-3202, shall at least equal any excess of the present value, on that
anniversary, of the future guaranteed benefits that would have been provided for
by the policy, including any existing paid-up additions had there been no
default, over the sum of (i) the then present value of the adjusted premiums as
defined in &#xA7;&#xA7; 38.2-3205 through 38.2-3209, corresponding to premiums
that would have fallen due on and after that anniversary, and (ii) the amount of
any indebtedness to the insurer on the policy.

B. For any policy issued on or after the operative date of &#xA7; 38.2-3209 and
providing at the option of the insured supplemental life insurance or annuity
benefits for an identifiable additional premium by rider or supplemental policy
provision, the cash surrender value referred to in subsection A of this section
shall at least equal the sum of (i) the cash surrender value defined in
subsection A for an otherwise similar policy issued at the same age without the
rider or supplemental policy provision and (ii) the cash surrender value defined
in subsection A for a policy providing only the benefits provided by the rider
or supplemental policy provision.

C. For any family policy issued on or after the operative date of &#xA7;
38.2-3209, defining a primary insured and providing term insurance on the life
of the spouse of the primary insured expiring before the spouse achieves the age
of seventy-one, the cash surrender value referred to in subsection A of this
section shall at least equal the sum of (i) the cash surrender value defined in
subsection A for an otherwise similar policy issued at the same age without the
term insurance on the life of the spouse and (ii) the cash surrender value
defined in subsection A for a policy providing only the benefits provided by the
term insurance on the life of the spouse.

D. Any cash surrender value available within thirty days after any policy
anniversary under any policy paid-up by completion of all premium payments or
any policy continued under any paid-up nonforfeiture benefit, whether or not
required by &#xA7; 38.2-3202, shall at least equal the present value, on that
anniversary, of the future guaranteed benefits provided for by the policy,
including any existing paid-up additions, decreased by any indebtedness to the
insurer on the policy.

HISTORY: Code 1950, § 38-377; 1952, c. 317, § 38.1-462; 1982, c. 228; 1986, c.
562.