§ 27-4-16 - Preliminary term policies.
SECTION 27-4-16
§ 27-4-16 Preliminary term policies.– Policies issued by companies doing business in this state may provide for notmore than one year preliminary term insurance; provided, that if the premiumcharged for term insurance under a limited payment life preliminary term policyproviding for the payment of all premiums on the policy in less than twenty(20) years from the date of the policy, or under an endowment preliminary termpolicy, exceeds that charged for life insurance under whole life preliminaryterm policies of the same company, then the reserve on the policy at the end ofany year, including the first, shall not be less than the reserve on a wholelife preliminary term policy issued in the same year and at the same age,together with an amount which shall be equivalent to the accumulation of a netlevel premium sufficient to provide for a pure endowment at the end of thepremium payment period equal to the difference between the value at the end ofthat period of a whole life preliminary term policy and the full level netpremium reserve at that time of a limited payment life or endowment policy.