§ 10-7-509 — Calculations of values - supplemental rules

(1) Any paid-up
annuity, cash surrender, or death benefits available at any time, other than on the
contract anniversary under any contract with fixed scheduled considerations, shall
be calculated with allowance for the lapse of time and the payment of any
scheduled considerations beyond the beginning of the contract year in which
cessation of payment of considerations under the contract occurs.

(2) For any contract which provides, within the same contract by rider or
supplemental contract provision, both annuity benefits and life insurance benefits
that are in excess of the greater of cash surrender benefits or a return of the gross
considerations with interest, the minimum nonforfeiture benefits shall be equal to
the sum of the minimum nonforfeiture benefits for the annuity portion and the
minimum nonforfeiture benefits, if any, for the life insurance portion computed as if
each portion were a separate contract. Notwithstanding the provisions of sections
10-7-505 to 10-7-508 and subsection (1) of this section, additional benefits payable
in the event of total and permanent disability, as reversionary annuity or deferred
reversionary annuity benefits, or as other policy benefits additional to life
insurance, endowment, and annuity benefits, and considerations for all such
additional benefits, shall be disregarded in ascertaining the minimum nonforfeiture
amounts and paid-up annuity, cash surrender, and death benefits that may be
required by this part 5. The inclusion of such additional benefits shall not be
required in any paid-up benefits, unless additional benefits separately would
require minimum nonforfeiture amounts and paid-up annuity, cash surrender, and
death benefits.

Legislative History

Source: L. 77: Entire part added, p. 531, � 11, effective July 1.