Kentucky Statutes 304.15-350 – Calculation of cash surrender value and paid-up nonforfeiture benefit of certain policies on default
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(1) 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 KRS § 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 KRS § 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.
(2) Contrary provisions. Any condition or stipulation in the policy of insurance or elsewhere contrary to the provisions of KRS § 304.15-310 to KRS § 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.
(a) In the event of death or dismemberment by accident or accidental means; (b) In the event of total and permanent disability;
Terms Used In Kentucky Statutes 304.15-350
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Year: means calendar year. See Kentucky Statutes 446.010
(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 KRS § 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.
(2) Contrary provisions. Any condition or stipulation in the policy of insurance or elsewhere contrary to the provisions of KRS § 304.15-310 to KRS § 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.