Any cash surrender value and any paid-up nonforfeiture benefit available under the policy in the event of default in a premium payment due at any time other than on the policy anniversary shall be calculated with allowance for the lapse of time and the payment of fractional premiums beyond the last preceding policy anniversary. All values referred to in Sections 27-15-73, 27-15-74, 27-15-75, 27-15-76, 27-15-77, and 27-15-78 may be calculated on the assumption that any death benefit is payable at the end of the policy year of death. The net value of any paid-up additions, other than paid-up term additions, shall not be less than the amounts used to provide such additions. Notwithstanding the provisions of Section 27-15-73, additional benefits payable as follows shall be disregarded in ascertaining cash surrender values and nonforfeiture benefits required by this article, and no such additional benefits shall be required to be included in any paid-up nonforfeiture benefits:
(1) In the event of death or dismemberment by accident or accidental means.
(2) In the event of total and permanent disability.
(3) As reversionary annuity or deferred reversionary annuity benefits.
(4) As term insurance benefits provided by a rider or supplemental policy provision to which, if issued as a separate policy, this article would not apply.
(5) As term insurance on the life of a child or on the lives of children provided in a policy on the life of a parent of the child, if such term insurance expires before the child's age is 26, is uniform in amount after the child's age is one and has not become paid-up by reason of the death of the parent of the child.
(6) As other policy benefits additional to life insurance and endowment benefits, and premiums for all such additional benefits.
Structure Code of Alabama
Chapter 15 - Life Insurance and Annuity Contracts.
Article 3 - Standard Nonforfeiture Law for Life Insurance.
Section 27-15-70 - Short Title.
Section 27-15-71 - Definitions.
Section 27-15-72 - Nonforfeiture Benefits.
Section 27-15-73 - Computation of Cash Surrender Value.
Section 27-15-74 - Computation of Paid-Up Nonforfeiture Benefits.
Section 27-15-75 - Calculation of Adjusted Premiums.
Section 27-15-76 - Calculation of Adjusted Premiums - Ordinary Policies.
Section 27-15-77 - Calculation of Adjusted Premiums - Industrial Policies.
Section 27-15-78 - Calculations of Adjusted Premiums by the Nonforfeiture Net Level Premium Method.
Section 27-15-79 - Nonforfeiture Benefits for Indeterminate Premium Plans.
Section 27-15-80 - Proration of Values; Net Value of Paid-Up Additions.