Naic: standard nonforfeiture law national association of insurance commissioners

Model state statute that governs terms for surrender of individual deferred annu­ities and cash value life insurance. This model, adopted by most states in the late 1970s and early 1980s, requires that annuity and whole-life contracts have certain minimum values that are not for­feited by policyholders even if a policy is canceled. A formula is given for computing the present value, cash surrender value, and paid-up annuity benefits. The model requires insurers to state clearly if an annuity has limited or no death benefits.

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