                                 CODE OF VIRGINIA

RIGHT TO INDIVIDUAL POLICY UPON TERMINATION OF EMPLOYMENT OR MEMBERSHIP (§
38.2-3332)

Each group life insurance policy shall contain a provision that if the
insurance, or any portion of it, on a person covered under the policy, other
than a minor child insured pursuant to § 38.2-3323, ceases because of
termination of employment or of membership in the class or classes eligible for
coverage under the policy, the person shall be entitled to have the insurer
issue him without evidence of insurability an individual policy of life
insurance, without disability or other supplementary benefits, subject to the
following:

1. Application for the individual policy shall be made, and the first monthly or
other mutually agreeable modal premium paid to the insurer, within thirty-one
days after the termination;

2. The individual policy shall at the option of the person be on any one of the
forms, except term insurance, then customarily issued by the insurer, subject to
the insurer&#8217;s customary age and amount requirements for the forms;

3. The amount of the individual policy shall not exceed the amount of terminated
group life insurance less the amount of any group life insurance that the person
is or becomes eligible for within thirty-one days after the termination. Any
amount of insurance maturing on or before the date of the termination as an
endowment payable to the person insured, whether in one sum, installments or in
the form of an annuity, shall not be included in the amount of terminated group
life insurance; and

4. The premium on the individual policy shall be at the insurer&#8217;s then
current rate applicable to the form and amount of the individual policy, to the
class of risk to which the person then belongs, and to the person&#8217;s age on
the effective date of the individual policy.

HISTORY: 1960, c. 273, § 38.1-428.1; 1986, c. 562.