Final answer:
Under the Nonforfeiture Law, an insurance company may defer the payment of cash surrender value for no longer than six months.
Step-by-step explanation:
The Nonforfeiture Law is a regulation that protects policyholders of life insurance policies by ensuring that they receive a minimum amount of benefits if they decide to surrender their policy. One of the provisions under the Nonforfeiture Law is the cash surrender value, which is the amount that an insurance company pays the policyholder if they choose to terminate the policy.
According to the law, insurance companies may defer the cash surrender value payment for a maximum of 6 months.
Under the Nonforfeiture Law, an insurance company is allowed to defer the payment of the cash surrender value to a policyholder, but this deferral period cannot exceed six months.
This legislation ensures that the policyholder's rights to the accumulated cash value of a life insurance policy are preserved, even if they choose to discontinue the policy. After the six-month period has passed, the company must provide the policyholder with the cash surrender value that has accrued under the policy.