38.2-3307 - Participation in surplus. - Virginia Statutes

§ 38.2-3307. Participation in surplus.

A. Each participating individual life insurance policy shall contain aprovision that the policy shall participate in the surplus of the insurer.Any policy containing a provision for participation at the end of the firstpolicy year, and annually thereafter, may also provide that each dividendshall be paid subject to the payment of the premiums for the next ensuingyear. The policyowner under any annual dividend policy shall have the righteach year to have the dividend arising from the participation paid in cash.If the policy provides other dividend options, it shall also state which ofthe options shall be effective if the insured does not elect any option on orbefore the expiration of the grace period allowed for the payment of thepremium.

B. This section shall not apply to any form of paid-up insurance, temporaryinsurance, or pure endowment insurance, issued or granted in exchange forlapsed or surrendered policies.

(Code 1950, § 38-371 (5); 1950, p. 180; 1952, c. 317, § 38.1-396; 1986, c.562.)