Page:United States Statutes at Large Volume 62 Part 1.djvu/57

 80TH CONG., 2D SESS.-CH. 66 -FEB. 19, 1948 [CHAPTER 66] AN ACT To amend section 1, and provisions (6), (7), and (8) of section 3, and provision (3) of section 4 of chapter V of the Act of June 19, 1934, entitled "An Act to regulate the business of life insurance in the District of Columbia", and to add sections 5a, 5b, and 5c thereto. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1 of chapter V of the Act of June 19, 1934, entitled "An Act to regulate the business of life insurance in the District of Columbia", be amended to read as follows: "SECTION 1. SUPERINTENDENT TO VALUE POLICIES; LEGAL STANDARD OF VALUATION.-(a) The Superintendent shall annually value, or cause to be valued, the reserve liabilities (hereinafter called reserves) for all outstanding life-insurance policies and annuity and pure endow- ment contracts of every life-insurance company doing business in the District except that in the case of an alien company such valuation shall be limited to its insurance transactions in the United States, and may certify the amount of any such reserves, specifying the mortality table or tables, rate or rates of interest and methods (net level premium method or other) used in the calculation of such reserves. All such valuations made by him or by his authority, shall be made upon the net premium basis. In calculating such reserves, he may use group methods and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves herein required of any foreign or alien company, he may accept any valuation made, or caused to be made, by the insurance supervisory official of any State or other juris- diction when such valuation complies with the minimum standard herein provided and if the official of such State or jurisdiction accepts as sufficient and valid for all legal purposes the certificate of valuation of the Superintendent when such certificate states the valuation to have been made in a specified manner according to which the aggregate reserves would be at least as large as if they had been computed in the manner prescribed by the law of that State or jurisdiction. "Any such company which at any time shall have adopted any standard of valuation producing greater aggregate reserves than those calculated according to the minimum standard herein provided may, with the approval of the Superintendent, adopt any lower standard of valuation, but not lower than the minimum herein provided. "(b) This subsection shall apply to only those policies and contracts issued prior to the operative date of section 5b (the standard non- forfeiture law) of this chapter. "The legal minimum standard for the valuation of life-insurance contracts issued before January 1, 1935, shall be the method and basis of valuation heretofore applied by the Superintendent in the valua- tion of such contracts, and for life-insurance contracts issued on and after said date shall be the one-year preliminary term method of valuation, except as hereinafter modified, on the basis of the American Experience Table of Mortality with interest at 31/2 per centum per annum: Provided, That any life company may, at its option, value its insurance contracts issued on and after January 1, 1935, in accord- ance with their terms on the basis of the American Men Ultimate Table of Mortality with interest not higher than 3 1/2 per centum per annum by the level net premium method or by the modified prelim- inary term method hereinafter described. "If the premium charged for term insurance under a limited pay- ment life preliminary term policy providing for the payment of all premiums thereon in less than twenty years from date of the policy, February 19, 1948 [H. R. 1634] [Public Law 414] Life insurance, D. C. 48 Stat. 1156. D.C. Code § 35-701. Annual valuation of reserve liabilities. Basis. Valuations madeby States, etc. Post, p. 31. Valuation of life- insurance contracts. Premium payment. 27 62 STAT.]

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