KRS 304.15-350: Calculation of cash surrender value and paid -up nonforfeiture benefit

of certain policies on default.

(1) Any cash surrender value and any paid-up nonforfeiture benefit, available under the

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 KRS 304.15 -320 to 304.15 -340 and in KRS 304.15-342,

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 be not less than the amounts used to provide such additions.

Notwithstanding KRS 304.15-320, additional benefits payable:

(a) In the event of death or dismemberment by accident or accidental means;

(b) In the event of total and permanent disability;

(c) As reversionary annuity or deferred reversionary annuity benefits;

(d) As term insurance benefits provided by a rider or supplemental policy

provisions to which, if issued as a separate policy, KRS 304.15-310 to 304.15-

360, inclusive, would not apply;

(e) As term insurance on the life of a child or on the li ves of children provided in

a policy on the life of a parent of the child, if such term insurance expires

before the child's age is twenty -six (26), and is uniform in amount after the

child's age is one (1);

(f) As other policy benefits additional to life insurance and endowment benefits;

and premiums for all such additional benefits, shall be disregarded in ascertaining

cash surrender values and nonforfeiture benefits required by KRS 304.15 -310 to

304.15-360, inclusive, and no such additional benefits sha ll be required to be

included in any paid-up nonforfeiture benefits.

(2) Contrary provisions. Any condition or stipulation in the policy of insurance or

elsewhere contrary to the provisions of KRS 304.15 -310 to 304.15 -360, and any

waiver of such provisions by the insured, shall be void.