2011 Vermont Code
Title 08 Banking and Insurance
Chapter 103 LIFE INSURANCE POLICIES AND ANNUITY CONTRACTS
§ 3748 Factors used in calculation of nonforfeiture benefits and cash surrender value

§ 3748. Factors used in calculation of nonforfeiture benefits and cash surrender value

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 sections 3743-3747a of this title 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 the provisions of section 3743 of this title, 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 suppleme

ntal policy provision to which, if issued as a separate policy, the provisions of this subchapter 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 26, is uniform in amount after the child's age is one, and has not become paid-up by reason of the death of a parent of the child, and (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 this subchapter, and no such additional benefits shall be required to be included in any paid-up nonforfeiture benefits. (1967, No. 344 (Adj. Sess.), { 1 (ch. 2, subch. 4, { 8); amended 1983, No. 55, { 8.)