38.2-3208 - Same; industrial policies. - Virginia Statutes

§ 38.2-3208. Same; industrial policies.

The provisions of this section shall not apply to industrial policies issuedon or after the operative date as defined in § 38.2-3209. For industrialpolicies issued on or after the operative date of § 38.2-3216, all adjustedpremiums and present values referred to in §§ 38.2-3202 through 38.2-3205shall be calculated on the basis of the Commissioners 1961 StandardIndustrial Mortality Table and the rate of interest specified in the policyfor calculating cash surrender values and paid-up nonforfeiture benefits.However, the rate of interest shall not exceed (i) 3 1/2 percent per year forpolicies issued before July 1, 1975, (ii) four percent per year for policiesissued on or after July 1, 1975, and prior to July 1, 1979, and (iii) 5 1/2percent per year for policies issued on or after July 1, 1979.Notwithstanding the foregoing provisions of this section, the rate ofinterest for any single premium whole life or endowment insurance policyissued on or after July 1, 1979, may be a rate not exceeding 6 1/2 percentper year. In calculating the present value of any paid-up term insurance withany accompanying pure endowment offered as a nonforfeiture benefit, the ratesof mortality assumed may be not more than those shown in the Commissioners1961 Industrial Extended Term Insurance Table. For insurance issued on asubstandard basis, the calculations of any adjusted premiums and presentvalues may be based on any other table of mortality specified by the insurerand approved by the Commission.

(1962, c. 562, § 38.1-465.2; 1975, c. 215; 1979, c. 437; 1982, c. 228; 1986,c. 562.)