Arkansas Code § 23-81-311 - Proration of Values -- Additional Benefits

(a) For any contract which provides, within the same contract by rider or supplemental contract provision, both annuity benefits and life insurance benefits that are in excess of the greater of cash surrender benefits or a return of the gross considerations with interest, the minimum nonforfeiture benefits, if any, for the life insurance portion shall be computed as if each portion were a separate contract.

(b) (1) Notwithstanding the provisions of ยงยง 23-81-305 -- 23-81-308 and 23-81-310, additional benefits payable:

(A) In the event of total and permanent disability;

(B) As reversionary annuity or deferred reversionary annuity benefits; or

(C) As other policy benefits additional to life insurance, endowment, and annuity benefits, and considerations for all the additional benefits,

shall be disregarded in ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender, and death benefits that may be required by this subchapter.

(2) The inclusion of additional benefits shall not be required in any paid-up benefit, unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender, and death benefits.

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Last modified: November 15, 2016