Page:United States Statutes at Large Volume 48 Part 1.djvu/1183

 73d C ONGRESS. SESS. II. CH. 672 . JUNE 19, 1934 . term po licies of the same company, the reserve thereon at the end of the year, including the first, shall not be less than the reserve on a twenty payment life preliminary term policy issued in the same year and at the same age, together with an amount which shall be equiv- alent to the accumulation of a net level premium sufficient to provide for a pure endowment at the end of the premium payment period, equal to the differences between the value at the end of such period of such a twenty payment life preliminary term policy and the full net level pre mium res erve at such time of such a limi ted paym ent life or endowment policy. The pre miu m pa yme nt period is the period during whi ch p remi ums are conc urre ntly pay able under such twenty payment life preliminary term policy and such limited pay- ment li fe or endowment policy. Policies issue d on the preliminary term method shall c ontain a clause specifying that the reserve thereof shall be computed in ac- cordance wi th the modified preliminary te rm method of valuation provided for herein. The legal minimum standard for the valuation of annuities issued on and after the 1st day of January next following the passage and approva l of th is Act shall be McCl intock' s Tabl e of Mo rtal ity Among Annuitants, with interest at 4 per centum per annum, but annuities deferred ten or more years and written in connection with life ins uran ce s hall be valued on the same basis as that used in computing the consideration or premiums therefor, or upon any higher standard at the option of the company. The legal minimum standard for the valuation of industrial pol- ic ies issu ed after the 1st of Janu ary next followi ng the p assage a nd approval of this Act shall be the American Experience Table of Mortali ty with interest at 3 1/2 per centum per annum : Provided, That any life company may voluntarily value its industrial policies on the basis of the standard industrial mortality table or the sub- standard industrial mortality table by the level net premium method or in accordance with their terms by the modified preliminary term method hereinbefore described. Every company shall report the standards us ed by it in making va luations to the Superint endent i n its an nual sta tement
 * Pr ovid ed,

That no such standards, if adopted, shall be abandoned without the consent of the Superintendent first obtained in writing. Th e Su peri nten dent may vary the standards of i nter est and mor- tality in the case of alien companies as to contracts issued by such c ompa nies in othe r co untr ies than the Uni ted Stat es, and in par- ticular cases of invalid lives and other extra hazards ; may val ue policies in groups, use approximate averages for fractions of a year and otherwise, and shall accept the valuation of the ins ura nce department of any State or country, if made upon a basis and acco rdin g to sta ndar ds p rodu cing a reserve not lower tha n he rein required or authorized, instead of the valuation herein required if the insurance official of such State or country accepts as sufficient and valid for all purposes the certificate of valuation of the Super- intendent of the District. SEC. 2. SEPARATE CLASSES AND ACCOUNTS TO BE RFPT FOR PART ICI- PATING AND NONPARTICIPATING INSURANCE .-Every life company doing business in the District which issues both participating and nonparticipating policies shall keep the two classes of business sepa- rate and shall make and include in the annual statement to be filed with the Super intende nt eac h year a separ ate st atement of the gains, losses, and expenses properly attributable to each of such cla ss es and also sh owi ng the manner in which any general outlay of expenses of the company has been apportioned to each. No such Reserves. 1157 "P remium pay ment period", construed. P olici es i ssued unde r preliminary term method. Legal minimum standard for valuation of annuities. For valuation of in- dustrial policies. Proviso. Va luation by com- pany. Report of standards. Proviso. Abandonment of standard. Power of Superin- tendent to vary stand- ards. Separate thaws and a ccoun ts, parti cipat ing and nonparticipating insurance. Separation of classes required. Annual statement .