§ 26-16-301 — Nonforfeiture benefits on old policies

Wyoming § 26-16-301

• Jurisdiction: Wyoming
• Title 26: Insurance Code
• Ch. 16: LIFE INSURANCE AND ANNUITY CONTRACTS

Text

(a) In the case of policies referred to in W.S. 26-16-102
and issued prior to the operative date of article 2 of this
chapter, there shall be a provision which, in case of default in
premium payments after premiums are paid for three (3) years,
shall secure to the policy owner, as a nonforfeiture benefit, a
stipulated form of insurance, the net value of which is at least
equal to the minimum life insurance reserve at the date of the
default on the policy and on any dividend addition thereto, as
required by article 2 of chapter 6 of this code, less a sum not
more than two and one-half percent (2 1/2%) of the amount
insured by the policy and of any existing dividend additions
thereto, and less any existing indebtedness to the insurer on or
secured by the policy.
(b) The net value specified in subsection (a) of this
section shall be determined on the basis of a mortality table
and rate of interest stated in the policy and acceptable for the
valuation of the policy pursuant to the standard valuation law,
except that if the mortality table is a more modern table than
the American experience table of mortality, a mortality rate not
more than one hundred thirty percent (130%) of the mortality
rate according to the more modern table may be used in
calculating any extended insurance, with accompanying pure
endowment, if any, offered as a nonforfeiture benefit. If the
mortality table used as the basis of determining the net value
is the commissioners' 1958 standard ordinary mortality table,
the mortality rates to be assumed in calculating any extended
insurance, with accompanying pure endowment, if any, shall not
be more than those shown in the commissioners' 1958 extended
term insurance table.
(c) The provision specified in subsection (a) of this
section shall:
(i) Stipulate that the policy may be surrendered to
the insurer at its home office within one (1) month from date of
default, for a specified cash value equal to the sum which would
otherwise be available for the purchase of insurance as
specified in subsection (a) of this section, and may stipulate
that the insurer may defer payment for not more than six (6)
months after the application therefor is made;
(ii) Contain a table showing the options available
under the policy each year upon default in premium payments
during the first twenty (20) years of the policy, or during the
term of the policy whichever is shorter;
(iii) Not be required in term insurances of twenty
(20) years or less or in industrial life insurance policies.
ARTICLE 4
STANDARD NONFORFEITURE LAW FOR INDIVIDUAL
DEFERRED ANNUITIES