2015 ORS 743.204¹
Standard Nonforfeiture Law for Life Insurance
  • applicability

(1) ORS 743.204 (Standard Nonforfeiture Law for Life Insurance) to 743.222 (Policy benefits and premiums that shall be disregarded in calculating cash surrender values and paid-up nonforfeiture benefits) may be cited as the Standard Nonforfeiture Law for Life Insurance.

(2) The operative date of the Standard Nonforfeiture Law for Life Insurance as to any policy is the earlier of:

(a) January 1, 1948; or

(b) The date specified in a written notice, filed with the Director of the Department of Consumer and Business Services by the insurer, of election to comply with the Standard Nonforfeiture Law for Life Insurance as to such policy as of the specified date.

(3) The Standard Nonforfeiture Law for Life Insurance shall not apply to:

(a) Any reinsurance, group insurance, pure endowment, annuity or reversionary annuity policy.

(b) Any term policy or renewal thereof, of uniform amount, which provides no guaranteed nonforfeiture or endowment benefits, of 20 years or less expiring before age 71, for which uniform premiums are payable during the entire term of the policy. For this purpose, the age at death for a joint term life insurance policy shall be the age at death of the oldest life.

(c) Any term policy of decreasing amount, which provides no guaranteed nonforfeiture or endowment benefits, if each adjusted premium, calculated as specified in ORS 743.215 (Calculation of adjusted premiums) and 743.216 (Adjusted premiums), is less than the adjusted premium so calculated on a term policy or renewal thereof of uniform amount, which provides no guaranteed nonforfeiture benefits or endowment benefits, which is issued at the same age, for the same initial amount of insurance and for a term of 20 years or less that expires before age 71 and for which uniform premiums are payable during the entire term of the policy. For this purpose, the age at death for a joint term life insurance policy shall be the age at death of the oldest life.

(d) Any policy which provides no guaranteed nonforfeiture or endowment benefits, and for which policy the cash surrender value or present value of paid-up nonforfeiture benefit calculated for the beginning of any policy year as specified in ORS 743.210 (Determination of cash surrender values), 743.213 (Determination of paid-up nonforfeiture benefits), 743.215 (Calculation of adjusted premiums) and 743.216 (Adjusted premiums) does not exceed two and one-half percent of the amount of insurance at the beginning of such year. [Formerly 739.340; 1977 c.320 §13; 1981 c.609 §12]

Note: The amendments to 743.204 (Standard Nonforfeiture Law for Life Insurance) by section 26, chapter 547, Oregon Laws 2015, apply for a limited period. See section 28, chapter 547, Oregon Laws 2015 (note below). The text that is applicable for the limited period is set forth for the user’s convenience.

743.204 (Standard Nonforfeiture Law for Life Insurance). (1) ORS 743.204 (Standard Nonforfeiture Law for Life Insurance) to 743.222 (Policy benefits and premiums that shall be disregarded in calculating cash surrender values and paid-up nonforfeiture benefits) may be cited as the Standard Nonforfeiture Law for Life Insurance.

(2) The operative date of the Standard Nonforfeiture Law for Life Insurance as to any policy is the earlier of:

(a) January 1, 1948; or

(b) The date specified in a written notice that the insurer files with the Director of the Department of Consumer and Business Services, in which the insurer elects to comply with the Standard Nonforfeiture Law for Life Insurance as to the policy and as of the specified date.

(3) The operative date of the valuation manual, as defined in ORS 733.325 (Definitions), is January 1 of the first calendar year in which the valuation manual is effective.

(4) The Standard Nonforfeiture Law for Life Insurance does not apply to:

(a) Any reinsurance, group insurance, pure endowment, annuity or reversionary annuity policy.

(b) Any term policy or renewal of a term policy, of uniform amount, that does not provide guaranteed nonforfeiture or endowment benefits, of 20 years or less expiring before age 71 and for which uniform premiums are payable during the entire term of the policy. For this purpose, the age at death for a joint term life insurance policy is the age at death of the oldest life.

(c) Any term policy of decreasing amount that does not provide guaranteed nonforfeiture or endowment benefits, if each adjusted premium, calculated as specified in ORS 743.215 (Calculation of adjusted premiums) and 743.216 (Adjusted premiums), is less than the adjusted premium so calculated on a term policy or renewal of a term policy of uniform amount that does not provide guaranteed nonforfeiture benefits or endowment benefits, that is issued at the same age, for the same initial amount of insurance and for a term of 20 years or less that expires before age 71 and for which uniform premiums are payable during the entire term of the policy. For this purpose, the age at death for a joint term life insurance policy is the age at death of the oldest life.

(d) Any policy that does not provide guaranteed nonforfeiture or endowment benefits, and for which policy the cash surrender value or present value of paid-up nonforfeiture benefit calculated for the beginning of any policy year as specified in ORS 743.210 (Determination of cash surrender values), 743.213 (Determination of paid-up nonforfeiture benefits), 743.215 (Calculation of adjusted premiums) and 743.216 (Adjusted premiums) does not exceed two and one-half percent of the amount of insurance at the beginning of the policy year.

Note: Section 28, chapter 547, Oregon Laws 2015, provides:

Sec. 28. (1) Section 14 of this 2015 Act and the amendments to ORS 732.586 (Confidentiality of information), 733.302 (Reserve valuation method for life insurance policies and annuity and pure endowment contracts), 733.304 (Opinion of actuary), 733.316 (Aggregate reserves), 733.318 (Alternative standards of valuation), 743.204 (Standard Nonforfeiture Law for Life Insurance) and 743.215 (Calculation of adjusted premiums) by sections 21 to 27 of this 2015 Act apply to all policies and contracts, as appropriate, that are issued on or after the operative date for the Standard Nonforfeiture Law for Life Insurance under ORS 743.204 (Standard Nonforfeiture Law for Life Insurance) and before the operative date of the valuation manual.

(2) Sections 15 to 17 of this 2015 Act do not apply to policies and contracts described in subsection (1) of this section.

(3) The minimum standard for the valuation of policies and contracts that were issued before the operative date for the Standard Nonforfeiture Law for Life Insurance under ORS 743.204 (Standard Nonforfeiture Law for Life Insurance) is the minimum standard set forth in the laws that were in effect immediately before the operative date for the Standard Nonforfeiture Law for Life Insurance under ORS 743.204 (Standard Nonforfeiture Law for Life Insurance). [2015 c.547 §28]


1 Legislative Counsel Committee, CHAPTER 743—Health and Life Insurance, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors743.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 OregonLaws.org contains the con­tents of Volume 21 of the ORS, inserted along­side the per­tin­ent statutes. See the preface to the ORS An­no­ta­tions for more information.
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.