State Codes and Statutes
Statutes > Virginia > Title-38-2 > Chapter-32 > 38-2-3223§ 38.2-3223. Calculation of cash surrender values.
For contracts that provide cash surrender benefits, the cash surrenderbenefits available before maturity shall not be less than the present valueas of the date of surrender of that portion of the maturity value of thepaid-up annuity benefit that would be provided under the contract at maturityarising from considerations paid before the time of cash surrender, reducedby the amount appropriate to reflect any prior withdrawals from or partialsurrenders of the contract. The present value shall be calculated on thebasis of an interest rate not more than one percent higher than the interestrate specified in the contract for accumulating the net considerations todetermine the maturity value, decreased by the amount of any indebtedness tothe insurer on the contract, including interest due and accrued, andincreased by any existing additional amounts credited by the insurer to thecontract. In no event shall any cash surrender benefit be less than theminimum nonforfeiture amount at that time. The death benefit under suchcontracts shall at least equal the cash surrender benefit.
(1979, c. 437, § 38.1-470.1; 1986, c. 562.)
