Any company shall provide for automatic paid-up or extended term insurance in the event of the default in premium payments of any contract that has been in force for at least two years from the date of issue. The amount of such insurance shall not exceed the amount which the reserve that is credited to the member will purchase. The company shall carry the liability on its books.

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Terms Used In Virginia Code 38.2-3817

  • company: means a cooperative nonprofit life benefit company as defined in subsection A of this section. See Virginia Code 38.2-3801
  • Contract: A legal written agreement that becomes binding when signed.

Code 1950, § 38-486; 1952, c. 317, § 38.1-517; 1986, c. 562.