                                 CODE OF VIRGINIA

SAME; USE OF NEW MORTALITY TABLE; ORDINARY POLICIES (§ 38.2-3207)

The provisions of this section shall not apply to ordinary policies issued on or
after the operative date as defined in § 38.2-3209. In the case of ordinary
policies issued on or after the operative date of § 38.2-3215, 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 1958 Standard Ordinary
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. For any category of ordinary insurance issued
on female risks, adjusted premiums and present values may be calculated
according to an age not more than six years younger than the actual age of the
insured. 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 1958
Extended Term Insurance Table. For insurance issued on a substandard basis the
calculation 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: 1959, Ex. Sess., c. 43, § 38.1-465.1; 1975, c. 215; 1979, c. 437;
1982, c. 228; 1986, c. 562.