Common use of Insufficient Value Clause in Contracts

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: