Sec. 1105.009. COMPUTATION OF PAID-UP NONFORFEITURE BENEFITS. Any paid-up nonforfeiture benefit available under the policy on default in the payment of a premium due on a policy anniversary must be such that its present value as of the policy anniversary is at least equal to:
(1) the cash surrender value then available under the policy; or
(2) if a cash surrender value is not available under the policy, the cash surrender value that would have been required by this chapter in the absence of the condition that premiums must have been paid for at least a specified period.
Added by Acts 2001, 77th Leg., ch. 1419, Sec. 2, eff. June 1, 2003.
Structure Texas Statutes
Title 7 - Life Insurance and Annuities
Subtitle A - Life Insurance in General
Chapter 1105 - Standard Nonforfeiture Law for Life Insurance
Subchapter A. General Provisions
Section 1105.002. Applicability of Chapter
Section 1105.004. Required Nonforfeiture Provisions
Section 1105.006. Determination of Rated Age
Section 1105.007. Computation of Cash Surrender Value Following Default
Section 1105.008. Computation of Cash Surrender Value on Surrender Following Policy Anniversary
Section 1105.009. Computation of Paid-Up Nonforfeiture Benefits
Section 1105.010. Proration of Values; Net Value of Paid-Up Additions