Page:United States Statutes at Large Volume 62 Part 1.djvu/58

 PUBLIC LAWS-CH. 66 -FEB. 19, 1948 or under an endowment preliminary term policy, exceeds that charged for like insurance under twenty payment life preliminary term policies Reserv es . 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 pay- ment life preliminary term policy issued in the same year and at the same age, together with an amount which shall be equivalent 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 difference between the value at the end of such period of such a twenty payment life preliminary term policy and the full net level premium reserve at such time of such a limited payment life or endowment Premium payment policy. The premium payment period is the period during which premiums are concurrently payable under such twenty payment life preliminary term policy and such limited payment life or endowment policy. Preliminary term "Policies issued on the preliminary term method shall contain a method. clause specifying that the reserve thereof shall be computed in accord- ance with the modified preliminary term method of valuation pro- vided for herein. .Valuation of annui- "The legal minimum standard for the valuation of annuities issued on and after January 1, 1935, shall be McClintock's Table of Mortality Among Annuitants, with interest at 4 per centum per annum, but annuities deferred ten or more years and written in connection with life insurance shall be valued on the same basis as that used in com- puting the consideration or premium therefor, or upon any higher standard at the option of the company. Valuaion o°findus- "The legal minimum standard for the valuation of industrial policies issued after January 1, 1935, shall be the American Experience Table of Mortality with interest at 31/2 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. aridatlon of stand- "The Superintendent mty vary the standards of interest and mor- tality in the case of alien companies as to contracts issued by such companies in other countries than the United States, and in particular cases of invalid lives and other extra hazards. "Reserves for all such policies and contracts may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for all such policies and contracts than the minimum reserves required by this subsection. "(c) This subsection shall apply to only those policies and contracts Pat,p.31. issued on or after the operative date of section 5B (the standard nonforfeiture law) of this chapter. Minimum stand- "(1) The minimum standard for the valuation of all such policies and contracts shall be the Commissioners reserve valuation method defined in paragraph (2), 31/2 per centum interest, and the following tables: "(i) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies, the Commissioners 1941 Standard Ordinarv Mortality Table. "(ii) For all industrial life-insurance policies issued on the standard basis, excluding any disability and accidental death benefits in such policies, the 1941 Standard Industrial Mortality Table. "(iii) For annuity and pure endowment contracts, excluding an disability and accidental death benefits in such policies, the 193 Standard Annuity Mortality Table. "(iv) For total and permanent disability benefits in or supplemen- tary to ordinary policies or contracts, class (3) Disability Table (1926) 28 [62 STAT.

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