                                 CODE OF VIRGINIA

CALCULATION OF CASH SURRENDER VALUES (§ 38.2-3223)

For contracts that provide cash surrender benefits, the cash surrender benefits
available before maturity shall not be less than the present value as of the
date of surrender of that portion of the maturity value of the paid-up annuity
benefit that would be provided under the contract at maturity arising from
considerations paid before the time of cash surrender, reduced by the amount
appropriate to reflect any prior withdrawals from or partial surrenders of the
contract. The present value shall be calculated on the basis of an interest rate
not more than one percent higher than the interest rate specified in the
contract for accumulating the net considerations to determine the maturity
value, decreased by the amount of any indebtedness to the insurer on the
contract, including interest due and accrued, and increased by any existing
additional amounts credited by the insurer to the contract. In no event shall
any cash surrender benefit be less than the minimum nonforfeiture amount at that
time. The death benefit under such contracts shall at least equal the cash
surrender benefit.

HISTORY: 1979, c. 437, § 38.1-470.1; 1986, c. 562.