Vermont § 3766 - Calculation of adjusted premiums; ordinary policies

§ 3766. Calculation of adjusted premiums; ordinary policies

• (a) This section does not apply to ordinary policies issued on or after the operative
  date of section 3768 of this subchapter. In the case of ordinary policies issued on
  or after the operative date of this section, all adjusted premiums and present values
  referred to in this subchapter shall be calculated on the basis of the Commissioners’
  1958 Standard Ordinary Mortality Table and the rate of interest specified in the policy
  for calculating cash surrender values and paid-up nonforfeiture benefits, provided
  that such rate of interest shall not exceed three and one-half percent per annum,
  except that a rate of interest not exceeding four percent per annum may be used for
  policies issued on or after April 12, 1973, and prior to January 1, 1980, and a rate
  of interest not exceeding five and one-half percent per annum may be used for policies
  issued on or after January 1, 1980, except that for any single premium whole life
  or endowment insurance policy, a rate of interest not exceeding six and one-half percent
  per annum may be used, provided that for any category of ordinary insurance issued
  on female risks, adjusted premiums and present values may be calculated according
  to an age not more than six years younger than the actual age of the insured. In calculating
  the present value of any paid-up term insurance with accompanying pure endowment,
  if any, offered as a nonforfeiture benefit, the rates of mortality assumed may not
  be more than those shown in the Commissioners’ 1958 Extended Term Insurance Table.
  For insurance issued on a substandard basis, the calculation of any adjusted premiums
  and present values may be based on such other table of mortality as may be specified
  by the company and approved by the Commissioner. (b) After the effective date of this section, any company may file with the Commissioner
  a written notice of its election to comply with the provisions of this section after
  a specified date before January 1, 1966. After the filing of such notice, upon the
  specified date (which shall be the operative date of this section for that company),
  this section shall become operative with respect to the ordinary policies thereafter
  issued by the company. If a company makes no election, the operative date of this
  section for the company shall be January 1, 1966. (Added 2015, No. 63, § 2, eff. June 17, 2015.)