Rules & Regulations of the State of Tennessee
Title 0780 - Commerce and Insurance
Subtitle 0780-01 - Insurance Division
Chapter 0780-01-29 - Accident and Health Policies Providing Return of Premium or Withdrawal Benefits
Section 0780-01-29-.04 - WITHDRAWAL AND DEATH BENEFITS

After completion of not more than five policy years a benefit must be payable upon termination of the policy or rider or both upon cessation of premium or upon death. The amount of benefit must be at least equal to the minimum reserve for the return of premium benefit, computed for this purpose on a five year preliminary term basis with five percent interest using a mortality table acceptable for a reserve purposes, with no discount for lapses and no claim offset. The actual withdrawal benefit paid may be reduced by all or a specified portion, not less than 20 %, of the claims paid to date of withdrawal. If, after payment of the withdrawal benefit, any income benefits shall become payable on account of disability which commenced before the withdrawal benefit was paid, the policy may provide that commencement of such income payments shall be deferred until the payments accrued shall exceed the amount of the withdrawal benefit.

Authority: T.C.A. §§ 56-1-701 and 56-26-114.