Final answer:
The nonforfeiture law allows an insurance company to defer cash surrender value payments for up to 6 months when a policyholder requests a surrender of their life insurance policy.
Step-by-step explanation:
Under the nonforfeiture law, which regulates the cash surrender value payments for life insurance policies, the insurance company may generally defer payment for up to 6 months after a policyholder requests a surrender of the policy. This is designed to provide the insurance company with adequate time to verify the policy and ensure that all conditions for surrender are satisfied before releasing funds. States may have specific regulations that can vary, so it's also important for policyholders to refer to their individual policy terms and the regulations of the jurisdiction in which the policy was issued.