38.2-3332 - Right to individual policy upon termination of employment or membership. - Virginia Statutes

§ 38.2-3332. Right to individual policy upon termination of employment ormembership.

Each group life insurance policy shall contain a provision that if theinsurance, or any portion of it, on a person covered under the policy, otherthan a minor child insured pursuant to § 38.2-3323, ceases because oftermination of employment or of membership in the class or classes eligiblefor coverage under the policy, the person shall be entitled to have theinsurer issue him without evidence of insurability an individual policy oflife insurance, without disability or other supplementary benefits, subjectto the following:

1. Application for the individual policy shall be made, and the first monthlyor other mutually agreeable modal premium paid to the insurer, withinthirty-one days after the termination;

2. The individual policy shall at the option of the person be on any one ofthe forms, except term insurance, then customarily issued by the insurer,subject to the insurer's customary age and amount requirements for the forms;

3. The amount of the individual policy shall not exceed the amount ofterminated group life insurance less the amount of any group life insurancethat the person is or becomes eligible for within thirty-one days after thetermination. Any amount of insurance maturing on or before the date of thetermination as an endowment payable to the person insured, whether in onesum, installments or in the form of an annuity, shall not be included in theamount of terminated group life insurance; and

4. The premium on the individual policy shall be at the insurer's thencurrent rate applicable to the form and amount of the individual policy, tothe class of risk to which the person then belongs, and to the person's ageon the effective date of the individual policy.

(1960, c. 273, § 38.1-428.1; 1986, c. 562.)