                                 CODE OF VIRGINIA

GRACE PERIOD (§ 38.2-3343)

A. Each industrial life insurance policy shall contain a provision that the
insured is entitled to a grace period of twenty-eight days within which the
payment of any premium after the first may be made. This grace period shall
terminate at noon on the twenty-eighth day after the due date of the defaulted
premium. However, for monthly payment policies the insured shall be entitled to
a grace period of not less than thirty-one days.

B. Each policy shall also contain a provision that during the grace period the
policy shall continue in full force, but if a claim arises under the policy
during the grace period and before the overdue premiums are paid, the amount of
overdue premiums may be deducted in any settlement under the policy.

HISTORY: Code 1950, § 38-434(1); 1952, c. 317, § 38.1-411; 1986, c. 562.