Chap. 288.—An ACT to amend the Code of Virginia by adding to chapter 169
thereof three new sections numbered 4258-h, 4258-i and 4258-j, defining group
life insurance, providing standard provisions for policies thereof and ex-
empting such policies and proceeds thereof from execution, attachment,
garnishment and other similar processes. [S B 213]

Approved March 28, 1934

1. Be it enacted by the General Assembly of Virginia, That the
Code of Virginia be amended by adding to chapter one hundred and
sixty-nine thereof three new sections numbered forty-two hundred and
fifty-eight-h, forty-two hundred and fifty-eight-i and forty-two hundred
and fifty-eight-j, which new sections shall read as follows:

Section 4258-h. Definition of group life insurance—Group life in-
surance is hereby declared to be that form of life insurance covering
not less than twenty-five employees with or without medical examina-
tion, written under a policy issued to the employer, the premium on
which is to be paid by the employees, employer or by the employer and
employees jointly, and insuring only all of his employees, or all of any
class or classes thereof determined by conditions pertaining to the em-
ployment, for amounts of insurance based upon some plan which will
preclude individual selection, for the benefit of persons other than the
employer; provided, however, that when the premium is to be paid by
the employees or by the employer and employee jointly and the bene-
fits of the policy are offered to all eligible employees, not less than
seventy-five per centum of such employees may be so insured.

The following forms of life insurance are hereby declared to be
group life insurance within the meaning of this section: (a) life in-
surance covering the members of one or more companies, batteries,
troops, or other units of the national guard, of any state or the District
of Columbia, written under a policy issued to the commanding general
of the national guard, who shall be deemed to be the employer for the
purposes of this section, the premium on which is to be paid by the
members of such units for the benefits of persons other than the em-
ployer; provided, however, that when the benefits of the policy are
offered to all eligible members of a unit of the national guard, not
less than seventy-five per centum of the members of such a unit may
be so insured; (b) life insurance covering the members of one or
more troops or other units of Federal, State, or municipal troopers or
Federal, State, or municipal police of any state, written under a policy
issued to the commanding officer of the Federal, State, or municipal
troopers or Federal, State or municipal police, who shall be deemed to
be the employer for the purposes of this section, the premium on which
is to be paid by the members of such units for the benefit of persons
other than the employer; provided, however, that when the benefits of
the policy are offered to all eligible members of a unit of the Federal,
State, or municipal troopers or Federal,- State, or municipal police
not less than seventy-five per centum of the members of such unit may
be so insured; (c) life insurance covering not less than fifty employees
of the Federal, State or a municipal government or of any department
thereof, or of any Federal, State, or municipal bureau, board, commis-
sion or institution, with or without medical examination, written under
a policy issued to the Governor of the State, or to the head of any
Federal, State, or municipal department, bureau, board, commission, or
institution, as the case may be, the premium on which is to be paid by
the employees and insuring only all employees, or all of any class or
classes thereof determined by conditions pertaining to the employment,
for amounts of insurance based upon some plan which will preclude
individual selection, for the benefit of persons other than the employer ;
provided, that when the benefits of the policy are offered to all eligible
employees, not less than seventy-five per centum of such employees may
be so insured; (d) life insurance covering the members of any labor
union, written under a policy issued to such union which shall be
deemed to be the employer for the purpose of this section, the premium
on which is to be paid by the union or by the union and its members,
jointly, and insuring only all of its members who are actively engaged
in the same occupation, for amounts of insurance based upon some plan
which will preclude individual selection, for the benefit of persons other
than the union or its officials; provided, however, that when the premium
is to be paid by the union and its members jointly and the benefits are
offered to all eligible members, not less than seventy-five per centum
of such members may be so insured; provided further, that when mem-
bers apply and pay for additional amounts of insurance a smaller per-
centage of members may be insured for such additional amounts if they
pass satisfactory medical examinations; (e) life insurance covering
the members of any voluntary association of employees of one em-
ployer, written under a policy issued to such association which shall
be deemed to be the employer for the purpose of this section, the
premium on which shall be paid by the association, and insuring a
portion or all of its members for amounts of insurance based upon some
plan which shall preclude individual selection, for the benefit of persons
other than the employer; provided, however, such members may ob-
tain additional insurance through such association if they furnish evi-
dence of insurability satisfactory to the life insurance company.
Section 4258-1. Standard provisions for policies of group life
insurance.—No policy of group life insurance shall be issued or de-
livered in this State unless and until a copy of the form thereof has
been filed with the State Corporation Commission and formally ap-
proved by it; nor shall a policy be so issued or delivered unless it
contains in substance the following provisions:

First. A provision that the policy shall be incontestable after one
year from its date of issue, except in case the insured shall within two
years from the date of the policy die by suicide whether sane or insane
and except for non-payment of premiums and except for violation of
the conditions of the policy requiring the payment of additional prem-
ium in the event of military or naval service in time of war.

Second. A provision that the policy, the application of the em-
ployer, and the individual applications, if any, of the employees insured
shall constitute the entire contract between the parties, and that all
statements made by the employer or by the individual employees shall,
in the absence of fraud, be deemed representations and not warranties,
and that no such statement shall be used in defense to a claim under
the policy, unless it is contained in a written application.

Third. A provision for the equitable adjustment of the premium
or the amount of insurance payable in the event of a misstatement of
the age of an employee.

Fourth. A provision that the company will issue to the employer
for delivery to the employee, whose life is insured under such policy,
an individual certificate setting forth a statement as to the insurance
protection to which he is entitled, to whom payable, together with pro-
visions to the effect that in case of the termination of the employment
for any reason whatsoever the employee shall be entitled to have issued
to him by the company, without evidence of insurability, and upon ap-
plication made to the company within thirty-one days after such ter-
mination and upon the payment of the premium applicable to the class
of risk to which he belongs and to the form and amount of the policy
at his then attained age, a policy of life insurance in any one of the
forms customarily issued by the company, except term insurance, in
an amount equal to the amount of his protection under such group in-
surance policy at the time of such termination.

Fifth. A provision that to the group or class thereof originally
insured shall be added from time to time all new employees of the
employer eligible to insurance in such group or class.

Except as provided in this chapter it shall be unlawful to make a
contract of life insurance covering a group in this State.

Policies of group life insurance, when issued in this State by any
company not organized under the laws of this State may contain, when
issued, any provision required by the law of the state or territory or
district of the United States under which the company is organized ; and
policies issued in other states or countries by companies organized in
this State may contain any provision required by the laws of the dis-
trict, territory, state, or country in which the same are issued, anything
in this section to the contrary notwithstanding. Any such policy may
be issued or delivered in this State which in the opinion of the State

Corporation Commission contains provisions on any one or more of
the several foregoing requirements more favorable to the employer
or to the employee than hereinbefore required.

Section 4258-j. Exemption of group life insurance policies from
execution.—No policy of group life insurance, nor the proceeds thereof,
shall be liable to attachment, garnishment, or other process, or to be
seized, taken, appropriated, or applied by any legal or equitable process
or operation of law, to pay any debt or liability of such employee, or
his beneficiary, or any other person who may have a right thereunder,
either before or after payment; nor shall the proceeds thereof, when
not made payable to a named beneficiary, constitute a part of the es-
tate of the employee for the payment of his debts.