Proration of values; net value of paid-up additions

1. Law
2. US Virgin Islands Code
3. Insurance
4. Life Insurance and Annuities
5. Standard Nonforfeiture Law of 2018 for Life Insurance
6. Proration of values; net value of paid-up additions

• Any cash surrender value and any paid up nonforfeiture benefit, valuable under the policy in the event of default in a premium payment due at any time other than the policy anniversary, are 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 sections 995, 996, and 997 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 addition may not be less than the amounts used to provide such additions. Notwithstanding section 995, additional benefits payable:

  • (1) In the event of death or dismemberment by accident or accidental means;

  • (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 subchapter would not apply;

  • (5) As term insurance in the life on 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, are disregarded in ascertaining cash surrender values and nonforfeiture benefits required by this subchapter, and no such additional benefits are required to be included in any paid-up non-forfeiture benefit.

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