§ 27-4.4-6 - Calculation of cash surrender value. - Rhode Island Statutes

SECTION 27-4.4-6

   § 27-4.4-6  Calculation of cash surrendervalue. – For contracts which provide cash surrender benefits, the cash surrenderbenefits available prior to maturity shall not be less than the present valueas of the date of surrender of that portion of the maturity value of thepaid-up annuity benefit which would be provided under the contract at maturityarising from consideration paid prior to the time of cash surrender reduced bythe amount appropriate to reflect any prior withdrawals from or partialsurrenders of the contract, the present value being calculated on the basis ofan interest rate not more than one percent (1%) higher than the interest ratespecified in the contract for accumulating the net considerations to determinethe maturity value, decreased by the amount of any indebtedness to the companyon the contract, including interest due and accrued, and increased by anyexisting additional amounts credited by the company to the contract. In noevent shall any cash surrender benefit be less than the minimum nonforfeitureamount at that time. The death benefit under the contracts shall be at leastequal to the cash surrender benefit.