Vermont § 3791k - Reserve calculation—Valuation net premium exceeding the gross premium charged
Full text of Vermont Vermont Statutes Online § 3791k — Reserve calculation—Valuation net premium exceeding the gross premium charged, with citation guidance and answers to common questions.
§ 3791k. Reserve calculation—Valuation net premium exceeding the gross premium charged
- (a) If in any contract year the gross premium charged by a company on a policy or contract
is less than the valuation net premium for the policy or contract calculated by the
method used in calculating the reserve but using the minimum valuation standards of
mortality and rate of interest, the minimum reserve required for the policy or contract
shall be the greater of either the reserve calculated according to the mortality table,
rate of interest, and method actually used for the policy or contract, or the reserve
calculated by the method actually used for the policy or contract but using the minimum
valuation standards of mortality and rate of interest and replacing the valuation
net premium by the actual gross premium in each contract year for which the valuation
net premium exceeds the actual gross premium. The minimum valuation standards of mortality
and rate of interest referred to in this section are those standards stated in sections
3791d and 3791f of this subchapter. (b) For a life insurance policy issued on or after January 1, 1987, for which the gross
premium in the first policy year exceeds that of the second year and for which no
comparable additional benefit is provided in the first year for the excess and that
provides an endowment benefit or a cash surrender value or a combination in an amount
greater than the excess premium, the provisions of this section shall be applied as
if the method actually used in calculating the reserve for the policy were the method
described in section 3791g of this subchapter, ignoring the subsection 3791g(b) of
this subchapter. The minimum reserve at each policy anniversary of such a policy shall
be the greater of the minimum reserve calculated in accordance with section 3791g
of this subchapter, including the subsection (b) of that section, and the minimum
reserve calculated in accordance with this section. (Added 2015, No. 63, § 1, eff. June 17, 2015.)
Source: official Vermont text · Last verified 2026-08-27
Frequently Asked Questions About Vermont § 3791k
What does Vermont Statutes Online § 3791k cover?
Section 3791k ("Reserve calculation—Valuation net premium exceeding the gross premium charged") is part of the Vermont Statutes Online, the codified statutory law of Vermont. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Vermont § 3791k?
A common citation format is "Vermont Statutes Online § 3791k" (Vermont). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Vermont law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.
How does Vermont § 3791k apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Vermont.