Nonforfeiture benefits; annuities, pure endowments

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  • Such contracts issued after the operative date of section 984 of this title shall contain—
    • (1) a provision that in the event of default in any stipulated payment, the insurer will grant a paid-up nonforfeiture benefit on a plan stipulated in the contract, effective as of such date, of such value as is hereinafter specified;

    • (2) a statement of the mortality table and interest rate used in calculating the paid-up nonforfeiture benefit available under the contract; and

    • (3) an explanation of the manner in which the paid-up nonforfeiture benefits are altered by the existence of any paid-up additions credited to the contract or any indebtedness to the insurer on the contract.


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