§27-4.3-3  Computation of cash surrender value. –


Published: 2015

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TITLE 27

Insurance

CHAPTER 27-4.3

The Standard Nonforfeiture Law for Life Insurance

SECTION 27-4.3-3



   § 27-4.3-3  Computation of cash surrender

value. –

(a) Any cash surrender value available under the policy in the event of default

in a premium payment due on any policy anniversary, whether or not required by

§ 27-4.3-2, shall be an amount not less than the excess, if any, of the

present value, on the anniversary, of the future guaranteed benefits which

could have been provided for by the policy, including any existing paid up

additions, if there had been no default, over the sum of:



   (1) The then present value of the adjusted premiums as

defined in § 27-4.3-5, corresponding to premiums which would have fallen

due on and after the anniversary; and



   (2) The amount of any indebtedness to the insurance company

on the policy.



   (b) For any policy issued on or after January 1, 1994, which

provides supplemental life insurance or annuity benefits at the option of the

insured and for an identifiable additional premium by rider or supplemental

policy provision, the cash surrender value referred to in subsection (a) shall

be an amount not less than the sum of the cash surrender value as defined in

subsection (a) for a similar policy issued at the same age without the rider or

supplemental policy provision and the cash surrender value as defined in

subsection (a) for a policy which provides only the benefits provided by the

rider or supplemental policy provision.



   (c) For any family policy issued on or after January 1, 1994,

which defines a primary insured and provides term insurance on the life of the

spouse of the primary insured expiring before the spouse's attaining age

seventy-one (71), the cash surrender value referred to in subsection (a) of

this section shall be an amount not less than the sum of the cash surrender

value as defined in subsection (a) for a similar policy issued at the same age

without the term insurance on the life of the spouse and the cash surrender

value as defined in subsection (a) for a policy which provides only the

benefits provided by the term insurance on the life of the spouse.



   (d) Any cash surrender value available within thirty (30)

days after any policy anniversary under any policy paid up by completion of all

premium payments or any policy continued under any paid up nonforfeiture

benefit, whether or not required by § 27-4.3-2, shall be an amount not

less than the present value, on the anniversary, of the future guaranteed

benefits provided for by the policy, including any existing paid-up additions,

decreased by any indebtedness to the insurance company on the policy.



History of Section.

(P.L. 1993, ch. 180, § 1.)

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