{"data":{"id":"us-ky/krs-304.15-352","jurisdiction":"us-ky","citation":"KRS 304.15-352","heading":"Cash surrender value -- Nonforfeiture factor.","body":"(1) This section, in addition to all other applicable sections of KRS 304.15 -310 to\n304.15-360, shall apply to all policies issued on or after January 1, 1986. Any cash\nsurrender value available under the policy in the event of default in a premium\npayment due on any policy anniversary shall be in an amount which does not differ\nby more than two-tenths of one percent (0.2%) of either the amount of insurance, if\nthe insurance be uniform in amount, or the average amount of insurance at the\nbeginning of each of th e first ten (10) policy years, from the sum of the greater of\nzero (0) and the basic cash value hereinafter specified and the present value of any\nexisting paid-up additions less the amount of any indebtedness to the insurer under\nthe policy.\n(2) The basic cash value shall be equal to the present value, on such anniversary, of the\nfuture guaranteed benefits which would have been provided for by the policy,\nexcluding any existing paid -up additions and before deduction of any indebtedness\nto the insurer, if t here had been no default, less the then present value of the\nnonforfeiture factors, as hereinafter defined, corresponding to premiums which\nwould have fallen due on and after such anniversary. Provided, however, that the\neffects on the basic cash value of supplemental life insurance or annuity benefits or\nof family coverage, as described in KRS 304.15 -320, 304.15-340, or 304.15-342 is\napplicable, shall be the same as are the effects specified in KRS 304.15 -320,\n304.15-340, or 304.15 -342, whichever is applic able, on the cash surrender values\ndefined in that section.\n(3) The nonforfeiture factor for each policy year shall be an amount equal to a\npercentage of the adjusted premium for the policy year, as defined in KRS 304.15 -\n340 or 304.15 -342, whichever is app licable. Except as required in this subsection,\nsuch percentage:\n(a) Must be the same percentage for each policy year between the second policy\nanniversary and the later of the fifth policy anniversary and the first policy\nanniversary at which there is available under the policy a cash surrender value\nin an amount, before including any paid -up additions and before deducting\nany indebtedness, of at least two -tenths of one percent (0.2%) of either the\namount of insurance, if the insurance be uniform in amount , or the average\namount of insurance at the beginning of each of the first ten (10) policy years;\nand\n(b) Must be such that no percentage after the later of the two (2) policy\nanniversaries specified in paragraph (a) of this subsection may apply to fewer\nthan five (5) consecutive policy years. Provided, that no basic cash value may\nbe less than the value which would be obtained if the adjusted premiums for\nthe policy, as defined in KRS 304.15 -340 or 304.15 -342, whichever is\napplicable, were substituted for the nonforfeiture factors in the calculation of\nthe basic cash value.\n(4) All adjusted premiums and present values referred to in this section shall for a\nparticular policy be calculated on the same mortality and interest bases as are used\nin demonstrating the policy's compliance with the other sections of KRS 304.15-310\nto 304.15-360. The cash surrender values referred to in this section shall include any\nendowment benefits provided for by the policy.\n(5) Any cash surrender value available other than in th e event of default in a premium\npayment due on a policy anniversary, and the amount of any paid -up nonforfeiture\nbenefit available under the policy in the event of default in a premium payment,\nshall be determined in manners consistent with the manners spe cified for\ndetermining the analogous minimum amounts in KRS 304.15 -310, 304.15 -320,\n304.15-330, 304.15-342 and 304.15-350. The amounts of any cash surrender values\nand of any paid -up nonforfeiture benefits granted in connection with additional\nbenefits suc h as those listed as paragraphs (a) to (f) of KRS 304.15 -350 shall\nconform with the principles of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=17239","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:44Z","sha256":"85c11887a496e8a582b47e6455e939c59ab58da49ee836b6d22b877e7d5a0b24","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.15-350","next":"us-ky/krs-304.15-360"},"notice":"GroundRules: Original legal text. Not legal advice."}