1. NRS 688A.290 to 688A.360, inclusive, shall be known as the Standard Nonforfeiture Law. Except as provided in NRS 688A.330 and 688A.340, NRS 688A.290 to 688A.360, inclusive, apply to policies of life insurance issued on and after January 1, 1962, unless the Commissioner deferred such application to a date not later than January 1, 1964, with respect to an insurer for good cause shown.
2. In the case of policies issued on or after the date NRS 688A.290 to 688A.360, inclusive, became applicable as defined in subsection 1, no policy of life insurance, except as stated in NRS 688A.360, may be issued for delivery or delivered in this state unless it contains in substance the following provisions, or corresponding provisions which in the opinion of the Commissioner are at least as favorable to the defaulting or surrendering policyholder as those required by this section and NRS 688A.305:
(a) In the event of default in any premium payment, the insurer will grant, upon proper request made not later than 60 days after the due date of the premium in default, a paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of such due date, of the amount specified in NRS 688A.290 to 688A.360, inclusive. In lieu of the stipulated paid-up nonforfeiture benefit, the insurer may substitute, upon proper request not later than 60 days after the due date of the premium in default, an actuarially equivalent alternative paid-up nonforfeiture benefit which provides a greater amount or longer period of death benefits or, if applicable, a greater amount or earlier payment of endowment benefits.
(b) Upon surrender of the policy within 60 days after the due date of any premium payment in default after premiums have been paid for at least 3 full years in the case of ordinary insurance or 5 full years in the case of industrial insurance, the insurer will pay, in lieu of any paid-up nonforfeiture benefit, a cash surrender value of the amount specified in NRS 688A.290 to 688A.360, inclusive.
(c) A specified paid-up nonforfeiture benefit must become effective as specified in the policy unless the person entitled to make an election elects another available option not later than 60 days after the due date of the premium in default.
(d) If the policy has become paid up by completion of all premium payments or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance or the fifth policy anniversary in the case of industrial insurance, the insurer will pay, upon surrender of the policy within 30 days after any policy anniversary, a cash surrender value of the amount specified in NRS 688A.290 to 688A.360, inclusive.
(e) In the case of policies which cause, on a basis guaranteed in the policy, unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, a statement of the mortality table, interest rate, and 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 20 policy years or during the term of the policy, whichever is shorter. Such values and benefits must 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.
(f) 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 the state in which the policy is delivered, and 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.
(g) 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 the method of computation has been filed with the insurance supervisory officer of the state in which the policy is delivered.
(h) 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.
3. Any of the provisions required by subsection 2 which are not applicable by reason of the plan of insurance may, to the extent inapplicable, be omitted from the policy.
4. Each insurer shall reserve the right to defer the payment of any cash surrender value for a period of 6 months after demand therefor with surrender of the policy.
(Added to NRS by 1971, 1735; A 1983, 950)