(a)For any life insurance plan which provides for future
premium determination, the amounts of which are to be determined
by the insurer based on the then estimates of future experience,
or for any life insurance plan which is of such a nature that
minimum values cannot be determined by the methods described in
W.S. 26-16-202 through 26-16-209, the commissioner shall be
satisfied that:
(i)The benefits provided under the plan are
substantially as favorable to policyholders and insureds as the
minimum benefits otherwise required by W.S. 26-16-202 through
26-16-209;
(ii)The benefits and the pattern of premiums of that
plan are not such as to mislead prospective policyholders or
insureds.
(b)The cash surrender values and paid-up nonforfeiture
benefits provided by the plan shall not be less
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(a) For any life insurance plan which provides for future
premium determination, the amounts of which are to be determined
by the insurer based on the then estimates of future experience,
or for any life insurance plan which is of such a nature that
minimum values cannot be determined by the methods described in
W.S. 26-16-202 through 26-16-209, the commissioner shall be
satisfied that:
(i) The benefits provided under the plan are
substantially as favorable to policyholders and insureds as the
minimum benefits otherwise required by W.S. 26-16-202 through
26-16-209;
(ii) The benefits and the pattern of premiums of that
plan are not such as to mislead prospective policyholders or
insureds.
(b) The cash surrender values and paid-up nonforfeiture
benefits provided by the plan shall not be less than the minimum
values and benefits required for the plan computed by a method
consistent with the principles of this article for life
insurance, as determined by regulations the commissioner
promulgates.
(c)(i) This subsection, in addition to all other
applicable subsections of this section, applies to all policies
issued on or after January 1, 1986. Any cash surrender value
available under the policy in the event of default in a premium
payment due on any policy anniversary shall be in an amount
which does not differ by more than two-tenths of one percent
(.2%) of either the amount of insurance, if the insurance is
uniform in amount, or the average amount of insurance at the
beginning of each of the first ten (10) policy years, from the
sum of (A) the greater of zero and the basic cash value as
specified in this subsection and (B) the present value of any
existing paid-up additions less the amount of any indebtedness
to the insurer under the policy;
(ii) The basic cash value shall be equal to the
present value, on such anniversary, of the future guaranteed
benefits which would have been provided for by the policy,
excluding any existing paid-up additions and before deduction of
any indebtedness to the insurer, if there had been no default,
less the then present value of the nonforfeiture factors, as
specified in paragraph (iii) of this subsection, corresponding
to premiums which would have fallen due on and after such
anniversary. However, the effects on the basic cash value of
supplemental life insurance or annuity benefits or of family
coverage, as described in W.S. 26-16-203 or 26-16-207, whichever
is applicable, shall be the same as are the effects specified in
W.S. 26-16-203 or 26-16-207, whichever is applicable on the cash
surrender values defined in that subsection;
(iii) The nonforfeiture factor for each policy year
shall be an amount equal to a percentage of the adjusted premium
for the policy year, as defined in W.S. 26-16-205, 26-16-206 and
26-16-207 or in W.S. 26-16-209, whichever is applicable. Except
as is required by subparagraph (A) of this paragraph, such
percentage:
(A) Must be the same percentage for each policy
year between the second policy anniversary and the later of (1)
the fifth policy anniversary and (2) the first policy
anniversary at which there is available under the policy a cash
surrender value in an amount, before including any paid-up
additions and before deducting any indebtedness, of at least
two-tenths of one percent (.2%) of either the amount of
insurance, if the insurance be uniform in amount, or the average
amount of insurance at the beginning of each of the first ten
(10) policy years; and
(B) Must be such that no percentage after the
later of the two (2) policy anniversaries specified in
subparagraph (A) of this paragraph may apply to fewer than five
(5) consecutive policy years.
(iv) No basic cash value may be less than the value
which would be obtained if the adjusted premiums for the policy,
as defined in W.S. 26-16-205, 26-16-206 and 26-16-207 or in W.S.
26-16-209, whichever is applicable, were substituted for the
nonforfeiture factors in the calculation of the basic cash
value;
(v) All adjusted premiums and present values referred
to in this subsection, for a particular policy, shall be
calculated on the same mortality and interest bases as are used
in demonstrating the policy's compliance with the other
subsections of this section. The cash surrender values referred
to in this subsection shall include any endowment benefits
provided for by the policy;
(vi) Any cash surrender value available other than in
the event of default in a premium payment due on a policy
anniversary, and the amount of any paid-up nonforfeiture benefit
available under the policy in the event of default in a premium
payment shall be determined in manners consistent with the
manners specified for determining the analogous minimum amounts
in W.S. 26-16-202, 26-16-203, 26-16-204, 26-16-209, and