Nonforfeiture Provision [Insurance] Law and Legal Definition
Nonforfeiture provision is a provision of life insurance policy, or of a statute applicable to such a policy, whereby a life insurance company is prohibited from issuing a policy which provides for the forfeiture of the same upon failure of the insured to pay a loan on the policy or interest thereon.
In the event of the lapse of the policy when it has a reserve value, the insured will be entitled under options as follows:
1) to receive the cash surrender value;
2) to have the insurance policy continue in force for the full amount for such a period of extended insurance as the reserve will purchase; or
3) to have the policy become a paid-up policy for such amount as the reserve will purchase.
Legal Definition list
- Nonforfeiture Provision [Insurance]
- Nonforfeitable Pension Benefit
- Nonforfeitable Benefit
- Nonforfeitable Account Balance
- Nonforfeitable
- Nonfrivolous Application
- Nongame Fish and Wildlife
- Nongovernmental Organization
- Nongovernmental Output Property Bond
- Nonhighly Compensated Work Force [Internal Revenue]
- Nonhub Airport
Related Legal Terms
- Accelerated Life Insurance Benefits
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accountants Professional Liability Insurance
- Accounts Receivable Insurance
- Actual Cash Value Insurance
- Actual Delivery of Insurance Policy
- Actuarial Documents [Federal Crop Insurance Corporation]
- Actuarially Appropriate [Federal Crop Insurance Corporation]
