                                 CODE OF VIRGINIA

GRACE PERIOD (§ 38.2-3303)

A. Each individual life insurance policy shall contain a provision that the
insured is entitled to a grace period of not less than thirty-one days within
which the payment of any premium after the first premium may be made, subject at
the insurer&#8217;s option to an interest charge that is not to exceed six
percent per year for the number of days of grace elapsing before the payment of
the premium.

B. The provision shall also state that during the grace period the policy shall
continue in full force, but if a claim arises under the policy during the grace
period before the overdue premium or any overdue premium installment is paid,
the amount of any earned overdue premium or installment through the policy month
of death with interest may be deducted from any amount payable under the policy
in settlement. The grace period shall start on the premium payment due date.

HISTORY: Code 1950, § 38-371(2); 1950, p. 179; 1952, c. 317, § 38.1-392; 1986,
c. 562.