§ 27-4.3-7 - Proration of values – Net value of paid-up additions. - Rhode Island Statutes

SECTION 27-4.3-7

   § 27-4.3-7  Proration of values – Netvalue of paid-up additions. – Any cash surrender value and any paid-up nonforfeiture benefit, available underthe policy in the event of default in a premium payment due at any time otherthan on the policy anniversary, shall be calculated with allowance for thelapse of time and the payment of fractional premiums beyond the last precedingpolicy anniversary. All values referred to in §§ 27-4.3-3 –27-4.3-5 may be calculated upon the assumption that any death benefit ispayable at the end of the policy year of death. The net value of any paid-upadditions, other than paid-up term additions, shall not be less than theamounts used to provide the additions. Notwithstanding the provisions of §27-4.3-3, additional benefits payable: (1) in the event of death ordismemberment by accident or accidental means, (2) in the event of total andpermanent disability, (3) as reversionary annuity or deferred reversionaryannuity benefits, (4) as term insurance benefits provided by a rider orsupplemental policy provision to which, if issued as a separate policy, thischapter would not apply, (5) as term insurance on the life of a child or on thelives of children provided in a policy on the life of a parent of the child, ifthe term insurance expires before the child's age is twenty-six (26), isuniform in amount after the child's age is one, and has not become paid-up byreason of the death of a parent of the child, and (6) as other policy benefitsadditional to life insurance and endowment benefits, and premiums for alladditional benefits, shall be disregarded in ascertaining cash surrender valuesand nonforfeiture benefits required by this chapter, and no additional benefitsshall be required to be included in any paid-up nonforfeiture benefits.