§ 10-7-306 — Calculation of values - supplemental rules

Colorado § 10-7-306

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Life Insurance

Text

(1) Any cash
surrender value and any paid-up nonforfeiture benefit, available under the policy in
the event of default in a premium payment due at any time other than on the policy
anniversary, shall be 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 10-7-303 to 10-7-305.1 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 not
be less than the amounts used to provide such additions.

(2) Notwithstanding the provisions of section 10-7-303, additional benefits
shall be disregarded in ascertaining cash surrender values and nonforfeiture
benefits required by this part 3, and no such additional benefits shall be required to
be included in any paid-up nonforfeiture benefits in the following events or
circumstances:

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

(b) In the event of total and permanent disability;

(c) As reversionary annuity or deferred reversionary annuity benefits;

(d) As term insurance benefits provided by a rider or supplemental policy
provision to which, if issued as a separate policy, this part 3 would not apply;

(e) 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;

(f) As other policy benefits additional to life insurance and endowment
benefits, and premiums for all such additional benefits.

Legislative History

Source: L. 61: p. 464, � 6. CRS 53: � 72-20-6. C.R.S. 1963: � 72-19-6. L. 81: (1) amended, p. 548, � 6, effective July 1.