The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
003B
:
STANDARD NONFORFEITURE LAW FOR LIFE INSURANCE
(Cite as: 8 V.S.A. § 3763)
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§ 3763. Computation of cash surrender value
(a) Any cash surrender value available under the policy in the event of default in a premium
payment due on any policy anniversary, whether or not required by section 3762 of
this subchapter, shall be an amount not less than the excess, if any, of the present
value, on the anniversary, of the future guaranteed benefits that would have been
provided for by the policy, including any existing paid-up additions, if there had
been no default, over the sum of:
(1) the then present value of the adjusted premiums as defined in sections 3765-3768 of
this subchapter, corresponding to premiums that would have fallen due on and after
the anniversary; and
(2) the amount of any indebtedness to the company on the policy.
(b) Notwithstanding subsection (a) of this section, for a policy issued on or after the
operative date of section 3768 of this subchapter that provides supplemental life
insurance or annuity benefits at the option of the insured and for an identifiable
additional premium by rider or supplemental policy provision, the cash surrender value
referred to in subsection (a) of this section shall be an amount not less than the
sum of the cash surrender value for an otherwise similar policy issued at the same
age without the rider or supplemental policy provision and the cash surrender value
as defined in subsection (a) of this section for a policy that provides only the benefits
otherwise provided by such rider or supplemental policy provision.
(c) For a family policy issued on or after the operative date of section 3768 of this
subchapter that defines a primary insured and provides term insurance on the life
of the spouse of the primary insured expiring before the spouse turns 71 years of
age, the cash surrender value referred to in subsection (a) of this section shall
be an amount not less than the sum of the cash surrender value for an otherwise similar
policy issued at the same age without term insurance on the life of the spouse and
the cash surrender value as defined in subsection (a) of this section for a policy
that provides only the benefits otherwise provided by term insurance on the life of
the spouse.
(d) A cash surrender value available within 30 days after any policy anniversary under
any policy paid up by completion of all premium payments or any policy continued under
any paid-up nonforfeiture benefit, whether or not required under section 3762 of this
subchapter, shall be an amount not less than the present value, on the anniversary,
of the future guaranteed benefits provided for by the policy, including any existing
paid-up additions, decreased by any indebtedness to the company on the policy. (Added 2015, No. 63, § 2, eff. June 17, 2015.)