Oregon Revised Statutes Chapter 743 § 743.221 — Cash

Cash surrender values upon default in premium payment. (1) This section shall apply to all life insurance policies issued on or after January 1, 1986. (2) Any cash surrender value available in the event of default in a premium payment due on any policy anniversary under a life insurance policy to which this section applies shall be in an amount which does not differ, by more than two-tenths of one percent of the amount of insurance, if uniform, or the average of the amounts of insurance at the beginning of each of the first 10 policy years, from A plus B minus C, where these amounts are defined as follows: (a) “A” equals the basic cash value on such anniversary as defined in subsection (3) of this section. (b) “B” equals the present value on such anniversary of any existing paid-up additions. (c) “C” equals the amount of any indebtedness to the insurer under the policy on such anniversary. (3)(a) The basic cash value referred to in subsection (2) of this section shall equal the present value, on a particular subject policy anniversary, of the future guaranteed benefits which would have been provided for by the policy if there had been no premium default, excluding any existing paid-up additions and before deduction of any indebtedness to the insurer, less the present value on such anniversary of the nonforfeiture factors, as defined in subsection (4) of this section, corresponding to premiums which would have fallen due on and after such anniversary. The basic cash value shall be taken as zero if this calculation produces a negative result. (b) Supplemental life insurance or annuity benefits and family coverage, as described in ORS