§ 26-16-406 — Calculating cash surrender benefits available prior to contract maturity

(a) For contracts which provide cash surrender benefits,
cash surrender benefits available prior to maturity shall not be
less than an amount determined as follows:
(i) Determine 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;
(ii) The amount determined in paragraph (i) of this
subsection shall be reduced by the amount appropriate to reflect
any prior withdrawals from or partial surrenders of the contract
with the present value being calculated on the basis of an
interest rate not more than one percent (1%) higher than the
interest rate specified in the contract for accumulating the net
considerations to determine the maturity value;
(iii) The amount determined in paragraph (ii) of this
subsection shall be decreased by the amount of any indebtedness
to the company on the contract, including interest due and
accrued; and
(iv) The amount determined in paragraph (iii) of this
subsection shall be increased by any existing additional amounts
credited by the company to the contract. In no case shall any
cash surrender benefit be less than the minimum nonforfeiture
amount at that time. The death benefit under the contracts shall
be at least equal to the cash surrender benefit.