HARRY HUGHES, Governor

3379

anniversary. All values referred to in subsections (d),
(e), (f), (g), (h), (i), (j), [and] (k), AND (K-l) of this
section 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 [dividends]
AMOUNTS used to provide such additions. Notwithstanding
the provisions of subsection (d) of this section, additional
benefits payable:

(1)  In the event of death by accident or
accidental means, or of dismemberment or loss of sight,

(2)  In the event of total and permanent
disability,

(3)  As reversionary annuity or deferred
reversionary annuity benefits,

(4)  As term insurance benefits provided by a
rider or supplemental policy provision to which, if issued
as a separate policy, this section would not apply,

(5)  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, 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

(6)  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 section, and no such additional benefits, shall be
required to be included in any paid-up nonforfeiture
benefits.

(M) THIS SUBSECTION, IN ADDITION TO ALL OTHER
APPLICABLE SUBSECTIONS OF THIS SECTION, SHALL APPLY TO ALL
POLICIES ISSUED ON OR AFTER JANUARY 1, 1986. ANY CASH
SURRENDER VALUE AVAILABLE UNDER THE POLICY IN THE EVENT OF
DEFAULT IN A PREMIUM PAYMENT DUE ON ANY POLICY ANNIVERSARY
SHALL BE IN AN AMOUNT WHICH DOES NOT DIFFER BY MORE THAN .2
PERCENT OF EITHER THE AMOUNT OF INSURANCE, IF THE INSURANCE
IS UNIFORM IN AMOUNT, OR THE AVERAGE AMOUNT OF INSURANCE AT
THE BEGINNING OF EACH OF THE FIRST 10 POLICY YEARS, FROM THE
SUM OF:

(1)  THE GREATER OF ZERO AND THE BASIC CASH VALUE
HEREINAFTER SPECIFIED; AND

(2)  THE PRESENT VALUE OF ANY EXISTING PAID-UP
ADDITIONS LESS THE AMOUNT OF ANY INDEBTEDNESS TO THE INSURER
UNDER THE POLICY.