38.2-3303 - Grace period. - Virginia Statutes

§ 38.2-3303. Grace period.

A. Each individual life insurance policy shall contain a provision that theinsured is entitled to a grace period of not less than thirty-one days withinwhich the payment of any premium after the first premium may be made, subjectat the insurer's option to an interest charge that is not to exceed sixpercent per year for the number of days of grace elapsing before the paymentof the premium.

B. The provision shall also state that during the grace period the policyshall continue in full force, but if a claim arises under the policy duringthe grace period before the overdue premium or any overdue premiuminstallment is paid, the amount of any earned overdue premium or installmentthrough the policy month of death with interest may be deducted from anyamount payable under the policy in settlement. The grace period shall starton the premium payment due date.

(Code 1950, § 38-371(2); 1950, p. 179; 1952, c. 317, § 38.1-392; 1986, c.562.)