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. § 3770)
-
§ 3770. Proration of values; net value of paid-up additions
Any cash surrender value and any paid-up nonforfeiture benefit available under a 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 3763-3768 of this subchapter may be calculated upon 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 3763 of this subchapter, additional benefits shall be disregarded in ascertaining
cash surrender values and nonforfeiture benefits required under this subchapter, and
no such additional benefits shall be required to be included in any paid-up nonforfeiture
benefits. As used in this section, “additional benefits” means benefits payable:
(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 subchapter would not apply;
(5) as term insurance in the life on 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 turns 26 years of age, is uniform in amount after the child’s age is one
year of age, and has not become paid-up by reason of the death of a parent of the
child; or
(6) as other policy benefits additional to life insurance and endowment benefits, and
premiums for all such additional benefits. (Added 2015, No. 63, § 2, eff. June 17, 2015.)