2014 Kentucky Revised Statutes CHAPTER 304 - INSURANCE CODE Subtitle 15 - Life Insurance and Annuity Contracts 15.15-350 Calculation of cash surrender value and paid-up nonforfeiture benefit of certain policies on default.
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304.15-350 Calculation of cash surrender value and paid-up nonforfeiture
benefit of certain policies on default.
(1)
(2)
Any cash surrender value and any paid-up nonforfeiture benefit, available
under the policy in the event of default in a premium payment due at any time
other than on the policy anniversary, shall be calculated with allowance for the
lapse of time and the payment of fractional premiums beyond the last
preceding policy anniversary. All values referred to in KRS 304.15-320 to
304.15-340 and in KRS 304.15-342, may be calculated upon the assumption
that any death benefit is payable at the end of the policy year of death. The net
value of any paid-up additions, other than paid-up term additions, shall be not
less than the amounts used to provide such additions. Notwithstanding KRS
304.15-320, additional benefits payable:
(a) In the event of death or dismemberment by accident or accidental means;
(b) In the event of total and permanent disability;
(c) As reversionary annuity or deferred reversionary annuity benefits;
(d) As term insurance benefits provided by a rider or supplemental policy
provisions to which, if issued as a separate policy, KRS 304.15-310 to
304.15-360, inclusive, would not apply;
(e) As term insurance on the life of a child or on the lives of children provided
in a policy on the life of a parent of the child, if such term insurance
expires before the child's age is twenty-six (26), and is uniform in amount
after the child's age is one (1);
(f) As other policy benefits additional to life insurance and endowment
benefits;
and premiums for all such additional benefits, shall be disregarded in
ascertaining cash surrender values and nonforfeiture benefits required by KRS
304.15-310 to 304.15-360, inclusive, and no such additional benefits shall be
required to be included in any paid-up nonforfeiture benefits.
Contrary provisions. Any condition or stipulation in the policy of insurance or
elsewhere contrary to the provisions of KRS 304.15-310 to 304.15-360, and
any waiver of such provisions by the insured, shall be void.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 166, sec. 7, effective July 15, 2010. -Amended 1982 Ky. Acts ch. 263, sec. 6, effective July 15, 1982. -- Created 1970
Ky. Acts ch. 301, subtit. 15, sec. 35, effective June 18, 1970.
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