KRS 304.15-320: Cash surrender value.

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 KRS 304.15 -310,

shall be an amount not less than the excess, if any, of the present value, on such

anniversary, of the future guaranteed benefits which 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 KRS 30 4.15-340 and

304.15-342, corresponding to premiums which would have fallen due on and after

such anniversary, and

(2) The amount of any indebtedness to the insurer on the policy; provided, however,

that for any policy issued on or after the effective date of KRS 304.15 -342 as

defined therein, which 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 shall be an amo unt not less

than the sum of the cash surrender value for an otherwise similar policy issued at

the same age without such rider or supplemental policy provision and the cash

surrender value for a policy which provides only the benefits otherwise provided b y

such rider or supplemental policy provision.

Provided, further, that for any family policy issued on or after the effective date of KRS

304.15-342 as defined therein, which defines a primary insured and provides term

insurance on the life of the spouse of the primary insured expiring before the spouse's age

seventy-one (71), the cash surrender value 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 such

term insurance on the life of the spouse and the cash surrender value for a policy which

provides only the benefits otherwise provided by such term insurance on the life of the

spouse.

Any cash surrender value available within thirty (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 by KRS 304.15-310 shall

be an amount not less than the present value, on such anniversary, of the future

guaranteed benefits provided for by the policy, including any existing paid -up additions,

decreased by any indebtedness to the insurer on the policy.