§ 26.1-33-19 — Computation of cash surrender value

1. Any cash surrender value available under a life insurance policy in the event of default
in a premium payment due on any policy anniversary, whether or not required by
section 26.1-33-18, must be an amount not less than the excess, if any, of the present
value, on the anniversary, of the future guaranteed benefits which would have been
provided for by the policy, including any existing paid-up additions, if there had been
no default, over the sum of:
a. The then present value of the adjusted premiums as defined in sections
26.1-33-21 through 26.1-33-24 corresponding to premiums which would have
fallen due on and after the anniversary; and
b. The amount of any indebtedness to the insurer on the policy.
2. Any life insurance policy issued on or after the operative date of section 26.1-33-24,
which provides supplemental life insurance or annuity benefits at the option of the
insured and for an identifiable additional premium by rider or supplemental policy
provision, the cash surrender value referred to in subsection 1 must be an amount not
less than the sum of the cash surrender value for an otherwise similar policy issued at
the same age without the rider or supplemental policy provision and the cash
surrender value as defined in subsection 1 for a policy which provides only the benefits
otherwise provided by the rider or supplemental policy provision.
3. For any family policy issued on or after the operative date of section 26.1-33-24, which
defines a primary insured and provides term insurance on the life of the spouse of the
primary insured expiring before the spouse's age seventy-one, the cash surrender
value referred to in subsection 1 must be an amount not less than the sum of the cash
surrender value for an otherwise similar policy issued at the same age without such
term insurance on the life of the spouse and the cash surrender value as defined in
subsection 1 for a policy which provides only the benefits otherwise provided by term
insurance on the life of the spouse.
4. Any cash surrender value available within thirty days after any policy anniversary
under any policy paid up by completion of all premium payments or any policy
continued under any paid-up nonforfeiture benefit, whether or not required by section
26.1-33-18, must be an amount not less than the present value, on such anniversary,
of the future guaranteed benefits provided for by the policy, including any existing
paid-up additions, decreased by any indebtedness to the insurer on the policy.