Can my premiums exceed the Cash Value Accumulation Test limit (CVAT)?
A. No. However, unlike GPT, there is no legal limit to the amount of premium that can be paid into a CVAT contract. Once the Policy Value exceeds the NSP any additional premium will increase the Net Amount at Risk (NAAR). If a premium payment will cause an increase of $20,000 NAAR, and the premium paid is more than $20 per $1000 of insurance, then we would ask for evidence of insurability and the case would have to be referred to an underwriter to review in order to possibly increase the face amount to keep the policy in compliance.
