(215 ILCS 5/240) (from Ch. 73, par. 852)
Sec. 240.
Premium
deposit reserve.
A life company may contract for or accept premium deposits, other than
premiums stated in the policy. The unused accumulation from such shall be
held and accounted for as a premium deposit reserve, and in such case the
policy or an endorsement thereon shall provide for the manner of
application of the premium deposit reserve to the payment of premiums in
default and for the disposition of such reserve if it is not sufficient to
pay the next premium. Such premium deposit reserve shall be available as an
addition to the loan and cash surrender values, shall be paid with other
benefits upon death or maturity of the policy, and shall be paid to the
insured whenever the cash surrender value with the premium deposit reserve
shall equal or exceed the original amount of insurance, but no part of the
premium deposit reserve may be paid to the insured during the continuance
of the policy except at such times or in such amounts as specified in the
policy or in endorsements thereon.
(Source: Laws 1937, p. 696.)
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