The State's Nonforfeiture Law is supported by which of the following principles?

The principle underlying the State's Nonforfeiture Law is primarily concerned with the assurance of policy continuity for policyholders. This law is designed to protect consumers by ensuring that, even in the event that they stop paying premiums, they will not completely lose the benefits accumulated under their life insurance policies.

Nonforfeiture benefits provide policyholders with alternative options such as a reduced paid-up policy, extended term insurance, or surrender values. This guarantees that their investment in the policy does not disappear entirely due to circumstances that may prevent them from maintaining premium payments. The emphasis is on providing security and continuation of benefits, which is crucial for policyholders who may experience financial hardships.

While protecting against premium defaults, guaranteeing investment returns, and ensuring policy benefits are important aspects of insurance, they do not encapsulate the broader intent of the Nonforfeiture Law, which ultimately aims to maintain the continuity of coverage for the consumer.