Chap. 97.—-An ACT to amend and re-enact Section 4272, as amended, of the Code
of Virginia relating to assessment or co-operative life or casualty corpora-
tions, companies, societies or associations. [H 166]

Approved February 29, 1944

Be it enacted by the General Assembly of Virginia:

1. That section forty-two hundred and seventy-two, as amended, of
the Code of Virginia be amended and re-enacted so as to read as follows:

Section 4272. Companies to File Copy of Charter, Statement of
Business, Et Cetera; What Such Papers to Show; Grace Period to be
shown in Policy.—Any company organized under the laws of this or any
other state of the United States, for the purpose of furnishing life, ac-
cident, or indemnity insurance, either upon the assessment plan or by
periodical premium payments, fixed in amount, to meet death losses
in accordance with American experience tables of mortality, or that
is carrying on the business of life or accident insurance upon either the
assessment or periodical premium payment plan, shall deposit with the
State Corporation Commission of this State (1) a certified copy of its
charter or articles of association; (2) a copy of its statement of busi-
ness for the year ending the thirty-first day of the next preceding Decem-
ber, sworn to by the president and secretary, or like officers thereof, set-
ting forth the number and amount of certificates of membership or policies
in force, and a detailed account of its expenditures, income, assets and
liabilities; (3) a certificate sworn to by the president and secretary, or
like officers thereof, setting forth that it has paid, and has the ability to
pay, its certificates or policies to the full amount named therein, that its
certificates or policies are payable only to beneficiaries having a legal
insurable interest in the life of the member or insured, and that an ordi-
nary assessment upon, or the periodical premium collected from, its
members is sufficient to pay its maximum certificate of membership or
policy issued therefor, if any, or thereafter to be issued to residents of
this State to the full amount or limit named therein; (4) if a foreign or
alien company, a certificate from the Insurance Commissioner or other
officers charged with the duty of executing or enforcing the execution
of the insurance laws of its home state, certifying that it is legally en-
titled to do an insurance business in its home state; (5) a copy of the
application for membership for insurance, and of each form thereof, if
more than one form is used; (6) a copy of the form of certificate of mem-
bership or policy, and of each form thereof, if more than one form is
used; (7) a copy of the constitution and by-laws, and of each and every
edition thereof; and (8) a certificate from the State Treasurer that it
has complied with the provisions of section forty-two hundred and eleven
of the Code of Virginia, by depositing with him securities of the kind
described in said section of market value of ten thousand dollars.

Any such company or association for furnishing life, accident or in-
demnity insurance that shall show by the above described papers that all
indemnities to beneficiaries are in the main provided for either by assess-
ments upon members made when needed by said company or association,
or by payments at a fixed date or dates, but with the right reserved by
such company or association to make additional call or calls; or, if defi-
nite periodical premiums, without the right to make such additional call
or calls, are used, such premiums shall show that they are sufficient to
pay average death losses in accordance with the American experience
table of mortality with interest at not more than four per centum, and
that its mortuary surplus fund is sufficient tc meet death losses in ac-
cordance with said tables of mortality, shall all or either of them be held
to be a company or association doing business upon the assessment plan ;
provided, that said periodical premiums do not include the reserve ele-
ment of the legal reserve systems of life insurance, defined in section
forty-two hundred and fifty-six. When any such company has complied
with the provisions of this section, it shall receive a license and certificate
of authority to do business in this State.

No policy of life insurance on which premiums are payable monthly
shall be issued by any such company or association unless such policy
contains in substance a provision that the insured is entitled to a grace
of fifteen days within which the payment of any premium, call or assess-
ment after the first month may be made, and no policy of life insurance
on which premiums are payable annually shall be issued by any such
company or association unless such policy contains in substance a pro-
vision that the insured is entitled to a grace of thirty days within which
the payment of any premium after the first year may be made, during
which periods of grace such policies shall continue in full force, any
statutes or acts or parts of statutes or acts to the contrary notwithstand-
ing. Grace shall date from the premium-paying date stated in the policy
or from the date any call or assessment is made, as the case may be.