HARRY HUGHES, Governor

3369

METHOD USED IN CALCULATING CASH SURRENDER VALUES AND THE
PAID-UP NONFORFEITURE BENEFITS AVAILABLE UNDER THE POLICY.
IN THE CASE OF ALL OTHER POLICIES, A statement of the
mortality table and interest rate used in calculating the
cash surrender values and the paid-up nonforfeiture benefits
available under the policy, together with a table showing
the cash surrender value, if any, and paid-up nonforfeiture
benefit, if any, available under the policy on each policy
anniversary, either during the first [twenty (20)] 20 policy
years or during the term of the policy, whichever is
shorter, such values and benefits to be calculated upon the
assumption that there are no dividends or paid-up additions
credited to the policy and that there is no indebtedness to
the insurer on the policy.

(6) A statement that the cash surrender values
and the paid-up nonforfeiture benefits available under the
policy are not less than the minimum values and benefits
required by or pursuant to the insurance law of this State;
an explanation of the manner in which the cash surrender
values and the paid-up nonforfeiture benefits are altered by
the existence of any paid-up additions credited to the
policy or any indebtedness to the insurer on the policy; if
a detailed statement of the method of computation of the
values and benefits shown in the policy is not stated
therein, a statement that such method of computation has
been filed with the insurance supervisory official of the
state in which the policy is delivered; and a statement of
the method to be used in calculating the cash surrender
value and paid-up nonforfeiture benefit available under the
policy on any policy anniversary beyond the last anniversary
for which such values and benefits are consecutively shown
in the policy.

(c)  Any of the provisions or portions thereof set
forth in subdivisions (1) through (6) of the foregoing
subsection (b) which are NOT applicable by reason of the
plan of insurance may, to the extent inapplicable, be
omitted from the policy. The insurer shall reserve the
right to defer the payment of any cash surrender value for a
period of [six (6)] 6 months after demand therefor with
surrender of the policy.

(d)  Any cash surrender value available under the
policy in the event of default in the premium payment due on
any policy anniversary, whether or not required by
subsection (b) of this section, shall be an amount not less
than the excess, if any, of the present value, on such
anniversary, of the future guaranteed benefits which would
have been provided for by the policy, including any existing
paid-up additions, if there had been no default, over the
sum of:

(1) The then present value of the adjusted
premiums as defined in subsections (f), (g), (h), (i), (j),