Insufficient Value Sample Clauses
The Insufficient Value clause defines the consequences and procedures when the value provided under a contract is deemed inadequate or does not meet agreed standards. Typically, this clause outlines the steps a party must take if they believe the goods, services, or consideration received are insufficient, such as notifying the other party and allowing an opportunity to remedy the deficiency. Its core function is to protect parties from receiving less than what was bargained for, ensuring fairness and providing a clear process for addressing shortfalls in value.
Insufficient Value. If, on a Valuation Date, the Account Value less the outstanding Policy Debt is less than or equal to zero, then this Policy will terminate for no value, subject to the Grace Period provision.
Insufficient Value. If on a Valuation Date a Monthly Anniversary Day occurred during the Valuation Period and the Cash Surrender Value is equal to or less than zero, then the Policy will terminate for no value, subject to the Grace Period provision. During the Protected Period shown in Section 1 the Policy will not terminate by reason of insufficient value if the Policy satisfies the minimum premium test as described below. The Protected Period begins on the policy date shown in Section 1. If on a Valuation Date a Monthly Anniversary Day occurred during the Valuation Period and the Monthly Expense Charge plus the Monthly Cost of Insurance plus the Policy Debt exceed the Account Value then the Unpaid Policy Charges will be increased by the excess of these amounts over the Account Value. Any Unpaid Policy Charges will accumulate at interest at the Fixed Account interest rate. MINIMUM PREMIUM TEST. The Policy satisfies the minimum premium test if the Premiums paid less any Partial Surrenders and less any Policy Debt exceed the sum of the minimum monthly premiums which applied to the Policy in each Policy Month from the policy date to the Valuation Date on which the test is applied. The minimum monthly premium applicable to the Policy is shown in Section 1. The minimum monthly premium will be revised as a result of any of the following changes to the Policy:
Insufficient Value. If the Net Cash Surrender Value on any Monthly Anniversary Day is not sufficient to cover the Cost of Insurance for the next month, this Policy will terminate subject to the Grace Period section. BASIS OF COMPUTATIONS. Guaranteed values are at least equal to those required by law. They are based on the Commissioners 1980 Standard Ordinary Mortality Table, Age Last Birthday. Where required, a detailed statement of the method of computation of values has been filed with the insurance department of the state in which this Policy was delivered. If the Net Investment Results credited to the Policy Value at all times from the date of issue should equal 4% with premiums and benefits determined accordingly under the terms of the Policy, then the resulting Cash Surrender Values will never be less than the minimum cash surrender values calculated according to the Standard Nonforfeiture Law using 4% and the Commissioners 1980 Standard Ordinary Mortality Table, Age Last Birthday. SURRENDER