{"data":{"id":"us-ky/krs-304.15-310","jurisdiction":"us-ky","citation":"KRS 304.15-310","heading":"Nonforfeiture provisions.","body":"(1) No policy of life insurance, except as stated in KRS 304.15 -360 shall be delivered\nor issued for delivery in this state unless it shall contain, in substance the following\nprovisions, or corresponding provisions which in the opinion of the commissioner\nare at least as favorable to the defaulting or surrendering policyholder as are the\nminimum requirements hereinafter specified and are essentially in compliance with\nKRS 304.15-352:\n(a) Paid-up nonforfeiture benefit. That, in the event of default in any premi um\npayment, the insurer will grant, upon proper request not later than sixty (60)\ndays after the due date of the premium in default, a paid -up nonforfeiture\nbenefit on a plan stipulated in the policy, effective as of such due date, of such\namount as may be  hereinafter specified. In lieu of such stipulated paid -up\nnonforfeiture benefit, the insurer may substitute, upon proper request not later\nthan sixty (60) days after the due date of the premium in default, an actuarially\nequivalent alternative paid -up nonforfeiture benefit which provides a greater\namount or longer period of death benefits or, if applicable, a greater amount or\nearlier payment of endowment benefits;\n(b) Cash surrender value. That, upon surrender of the policy within sixty (60)\ndays after th e due date of any premium payment in default after premiums\nhave been paid for at least three (3) full years in the case of ordinary insurance\nor five (5) full years in the case of industrial insurance, the insurer will pay, in\nlieu of any paid -up nonforfe iture benefit, a cash surrender value of such\namount as may be hereinafter specified;\n(c) Effective date of benefit. That a specified paid -up nonforfeiture benefit shall\nbecome effective as specified in the policy unless the person entitled to make\nsuch election elects another available option not later than sixty (60) days after\nthe due date of the premium in default;\n(d) Cash surrender value if policy paid up. That, if the policy shall have become\npaid up by completion of all premium payments or if it is continued under any\npaid-up nonforfeiture benefit which became effective on or after the third\npolicy anniversary in the case of ordinary insurance or the fifth policy\nanniversary in the case of industrial insurance, the insurer will pay, upon\nsurrender of the policy within thirty (30) days after any policy anniversary, a\ncash surrender value of such amount as may be hereinafter specified;\n(e) Mortality table and interest rate used. In the case of policies which cause, on a\nbasis guaranteed in the policy, u nscheduled changes in benefits or premiums,\nor which provide an option for changes in benefits or premiums other than a\nchange to a new policy, a statement of the mortality table, interest rate, and\nmethod used in calculating cash surrender values and the paid-up\nnonforfeiture benefits available under the policy. In the case of all other\npolicies, statement of the mortality table and interest rate used in calculating\nthe cash surrender values and the paid -up nonforfeiture benefits available\nunder the policy , together with a table showing the cash surrender value, if\nany, and paid -up nonforfeiture benefits, if any, available under the policy on\neach policy anniversary either during the first twenty (20) policy years or\nduring the term of the policy, whichever is shorter, such values and benefits to\nbe calculated upon the assumption that there are no dividends or paid -up\nadditions credited to the policy and that there is no indebtedness to the insurer\non the policy; and\n(f) Method used in computing value and be nefit. A statement that the cash\nsurrender values and the paid -up nonforfeiture benefits available under the\npolicy are not less than the minimum values and benefits required by or\npursuant to the insurance law of the state in which the policy is delivered ; an\nexplanation of the manner in which the cash surrender values and the paid -up\nnonforfeiture benefits are altered by the existence of any paid -up additions\ncredited to the policy or any indebtedness to the insurer on the policy; if a\ndetailed statement of the method of computation of the values and benefits\nshown in the policy is not stated therein, a statement that such method of\ncomputation has been filed with the insurance supervisory official of the state\nin which the policy is delivered; and a state ment of the method to be used in\ncalculating the cash surrender value and paid -up nonforfeiture benefit\navailable under the policy on any policy anniversary beyond the last\nanniversary for which such values and benefits are consecutively shown in the\npolicy.\n(2) Any of the foregoing provisions or portions thereof not applicable by reason of the\nplan of insurance may, to the extent inapplicable, be omitted from the policy.\n(3) The insurer shall reserve the right to defer the payment of any cash surrender val ue\nfor a period of six (6) months after demand therefor with surrender of the policy.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17229","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"533d4e752e2b9d70bede90fa26c26830f38acd87d82212fb45e6571fa0210b4a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-300","next":"us-ky/krs-304.15-311"},"notice":"GroundRules: Original legal text. Not legal advice."}