38.2-3104 - No policy to be issued purporting to take effect more than six months before application made; conversion permitted. - Virginia Statutes

§ 38.2-3104. No policy to be issued purporting to take effect more than sixmonths before application made; conversion permitted.

A. No life insurance policy delivered or issued for delivery in thisCommonwealth shall be backdated more than six months from the date thewritten application for the insurance was made if the premium on the policyis less than the premium that would be payable on the policy, as determinedby the nearest birthday of the insured when the application was made.

B. Neither the provisions of subsection A of this section nor any otherprovision of general law shall prohibit the conversion or exchange to someform of life insurance dated back to become effective at an age not less thanthe insured's age at his nearest birthday on the date of issue of theexisting contract for:

1. A policy insuring one person for a policy insuring another person datednot earlier than the original policy exchanged;

2. The conversion of any existing life insurance policy; or

3. Any deferred annuity contract purchased by a consideration payable inannual or more frequent installments, and under which no annuity paymentshave yet been made.

The exchanged or converted form of life insurance shall not exceed thegreater of (i) the amount of insurance under the existing policy or (ii) theamount of insurance that the premium or consideration paid for the existingpolicy or contract would have purchased at the insured's age on his nearestbirthday at the date of issue of the existing policy or contract.

(Code 1950, § 38-363; 1952, c. 317, § 38.1-435; 1956, c. 417; 1980, c. 205;1986, c. 562.)