                                 CODE OF VIRGINIA

PARTICIPATION IN SURPLUS (§ 38.2-3307)

A. Each participating individual life insurance policy shall contain a provision
that the policy shall participate in the surplus of the insurer. Any policy
containing a provision for participation at the end of the first policy year,
and annually thereafter, may also provide that each dividend shall be paid
subject to the payment of the premiums for the next ensuing year. The
policyowner under any annual dividend policy shall have the right each year to
have the dividend arising from the participation paid in cash. If the policy
provides other dividend options, it shall also state which of the options shall
be effective if the insured does not elect any option on or before the
expiration of the grace period allowed for the payment of the premium.

B. This section shall not apply to any form of paid-up insurance, temporary
insurance, or pure endowment insurance, issued or granted in exchange for lapsed
or surrendered policies.

HISTORY: Code 1950, § 38-371 (5); 1950, p. 180; 1952, c. 317, § 38.1-396;
1986, c. 562.