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. § 3767)
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§ 3767. Calculation of adjusted premiums; industrial policies
(a) This section does not apply to industrial policies issued on or after the operative
date of section 3768 of this subchapter. In the case of industrial policies issued
on or after the operative date of this section, all adjusted premiums and present
values referred to in this subchapter shall be calculated on the basis of the Commissioners’
1961 Standard Industrial Mortality Table and the rate of interest specified in the
policy for calculating cash surrender values and paid-up nonforfeiture benefits provided
that such rate of interest shall not exceed three and one-half percent per annum,
except that a rate of interest not exceeding four percent per annum may be used for
policies issued on or after April 12, 1973, and prior to January 1, 1980, and a rate
of interest not exceeding five and one-half percent per annum may be used for policies
issued on or after January 1, 1980, except that for any single premium whole life
or endowment insurance policy, a rate of interest not exceeding six and one-half percent
per annum may be used. In calculating the present value of any paid-up term insurance
with accompanying pure endowment, if any, offered as a nonforfeiture benefit, the
rates of mortality assumed may be not more than those shown in the Commissioners’
1961 Industrial Extended Term Insurance Table. For insurance issued on a substandard
basis, the calculations of any such adjusted premiums and present values may be based
on such other table of mortality as may be specified by the company and approved by
the Commissioner.
(b) After the effective date of this section, any company may file with the Commissioner
a written notice of its election to comply with the provisions of this section after
a specified date before January 1, 1968. After the filing of such notice, upon the
specified date, which shall be the operative date of this section for that company,
this section shall become operative with respect to the industrial policies thereafter
issued by the company. If a company makes no election, the operative date of this
section for the company shall be January 1, 1968. (Added 2015, No. 63, § 2, eff. June 17, 2015.)