Page:United States Statutes at Large Volume 48 Part 1.djvu/1182

 1156 73d CONGRESS. SESS. II. CH. 672 . JUNE 19, 1934. comp anies. The funds and assets so held by su ch trustees shall, with the deposits otherwise ma de by the company and the funds and assets held by the company in the United States for the benefit of its pol ic yho ld ers and creditors in the United States, con st itu te the assets of the company for the purpose of making its financial statements required by this Act. Provisions relating to CHAPTER V-PROVISIONS RELATING TO ALL LIFE INSURANCE all life insurance com- panies. COMPANIES See. 1. Superintendent to value policies ; legal standard of valuation. Sec. 2. Sepa rate class es an d acc ounts to be kept for part icipa ting and n on- participating insurance. Sec. 3. Stan dard provi sions requ ired in li fe-in suran ce po licie s. Sec. 4. Provisions prohibited in life-insurance policies. Sec. 5. Standard provisions required in annuities and pure endowment con- tracts. Sec. 6 . Extension of time for payment of life premium. Sec. 7. Inte rest on po licy and premium loans may be added to principal. Sec. 8. Life-policy forms to be filed wi th Su perin tende nt. See. 9. Provisions req ui red by the la ws of a comp any's own State may be included in policies. Sec. 10. Definition of group lif e insurance. Se c. 1 1 . Standard provisions for policies of group life insurance. Sec. 12. Standard provisions for accident and health policies. Sec. 13. Stock operations and advisory-board contracts prohibited. Sec. 14. Misrepresentations prohibited. See. 15 . Discrimination prohibited. Sec. 16. Rights of creditors and beneficiaries under policies of life insurance. Sec. 17. Exemption of group life-insurance policies from execution. Sec. 18. False statements. Sec. 19. Proceeds of certain policies to be held in trust by li fe company. Sec. 20. When actual premium for life policy is less than net premium. Policies. SE CTION 1. SUPERINTENDENT TO VALUE POLICIES ; LEGAL STANDARD O F Anneal tend valu ations by Superintendent. VALUATION .-The Superintendent shall annually make valuations of all outstanding policies, additions thereto, and all other life insur- ance and an nuity obligations of every life company doing business Basis. in the District. All valuations mad e by hi m, or by his au tho ri ty, shall be made upon the net premium basis. Standard of valua- The leg al mi nimum stan dard for the va luati on of life -insu rance tion. contracts i ssued before the 1st day of January next following the passage and approval of this Act shall be the method and basis of valuation her et ofo re ap pl ied by the Superintendent in the valuation of suc h con tract s, and for life -insu rance cont racts issu ed on and after said date s hall be the one-year preliminary term method of valua- tion, except as hereinafter modified, on the basis of the American Experience Table of Mortality wi th interest at 31 /2 per centum per Proviso. annum : Pro vided, That any life company may, at its option, value V aluat ion of po licie s by company . its insurance contracts issued on and after the passage and approval of this Act in accordance with their terms on the basis of the Ameri- can Men Ult imate Table of Mortality with interest not higher than 31 /2 per centum per annuin by the level net premium method or by the modifie d preliminary term method hereinafter described. Premium payments. If the p remiu m cha rged for t erm i nsura nce u nder a lim ited pay- me nt life preliminary term policy providing for the payment of all pre mi ums thereon in les s tha n twenty years fr om da te of the pol ic y, or under an endowment preliminary term policy, exceeds that charg ed for lik e ins uranc e und er tw enty payme nt li fe pr elimi nary Funds and assets.