nonforfeiture


Also found in: Financial.

nonforfeiture

(ˌnɒnˈfɔːfɪtʃə)
n
(Insurance) insurance a clause in a life insurance policy describing the terms under which a lapsed policy remains valid if the premium is not paid
References in periodicals archive ?
Cash surrender value, or nonforfeiture value, is the sum of money an insurance company will pay a policyholder if he or she decides to cancel the policy before it expires or before he or she dies.
Other highlights of this new product are inflation protection features, nonforfeiture options and benefits for care giver training, respite care and nursing home bed reservations, according to Paul Rego.
A policy expires when it has run past its grace period with premiums unpaid and has exhausted any benefits available under the nonforfeiture option or when the policyowner has allowed the policy to lapse by not paying the next premium due and then decides to cash in the policy.
Adopting the new method requires amendments to state standard valuation and standard nonforfeiture laws for life insurance policies.
The CSO tables are smooth mortality tables used for conservative nonforfeiture value calculations for the protection of the insurer (a major concern of insurers and regulators) and do not anticipate extraordinary health changes in individuals but only anticipate aggregate group mortality change characteristics.
Needless to say, the above illustration is merely meant to show how wadi'ah works to provide for the nonforfeiture benefits.
Because the defined benefit plan required that the employee begin to receive benefits as soon as employment is terminated, and the employee elected to receive benefits immediately in the form of an annuity, the nonforfeiture rule was satisfied.
An ESOP must meet specific requirements pertaining to coverage, nondiscrimination in contributions, limits on contributions, diversification of investments, and nonforfeiture of rights upon termination of employment.
The nonforfeiture requirement is met for any level premium contract if the issuer of the contract offers to the policyholder (including any group policyholder) a nonforfeiture provision that:
challenged in court for violating ERISA nonforfeiture provisions, but
As a result, preneed insurance policies issued on or after January 1, 2009, and before January 1, 2012 can use the 2001 CSO Mortality tables that lists different mortality rates for men and women to determine the minimum standard for reserves and nonforfeiture benefits.