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.)