§ 10-7-506 — Computation of cash surrender benefit

For contracts which
provide cash surrender benefits, such cash surrender benefits available prior to
maturity shall not be less than the present value as of the date of surrender of that
portion of the maturity value of the paid-up annuity benefit which would be
provided under the contract at maturity arising from considerations paid prior to the
time of cash surrender reduced by the amount appropriate to reflect any prior
withdrawals from or partial surrenders of the contract, such present value being
calculated on the basis of an interest rate not more than one percent higher than
the interest rate specified in the contract for accumulating the net considerations
to determine such maturity value, decreased by the amount of any indebtedness to
the company on the contract, including interest due and accrued, and increased by
any existing additional amounts credited by the company to the contract. In no
event shall any cash surrender benefit be less than the minimum nonforfeiture
amount at the time of surrender. The death benefit under such contracts shall be at
least equal to the cash surrender benefit.

Legislative History

Source: L. 77: Entire part added, p. 530, � 11, effective July 1.