Page:United States Statutes at Large Volume 62 Part 1.djvu/59

 80TH CONG. , 2D SESS.--CH. 66-FEB. 19, 1948 which, for active lives, shall be combined with a mortality table permitted for calculating the reserves for life-insurance policies. "(v) For accidental death benefits in or supplementary to policies, the Intercompany Double Indemnity Mortality Table combined with a mortality table permitted for calculating the reserves for life- insurance policies. "(vi) For group life insurance, life insurance issued on the sub- standard basis and other special benefits, such tables as may be approved by the Superintendent. "(2) Reserves according to the Commissioners reserve valuation Reserves method, for the life insurance and endowment benefits of policies pro- viding for a uniform amount of insurance and requiring the payment of uniform premiums shall be the excess, if any, of the present value, at the date of valuation, of such future guaranteed benefits provided for by such policies, over the then present value of any future modified net premiums therefor. The modified net premiums for any such Momdified net pre- policy shall be such uniform percentage of the respective contract premiums for such benefits that the present value, at the date of issue of the policy, of all such modified net premiums shall be equal to the sum of the then present value of such benefits provided for by the policy and the excess of (A) over (B), as follows: "(A) A net level annual premium equal to the present value, at the date of issue, of such benefits provided for after the first policy year, divided by the present value, at the date of issue, of an annuity of one per annum payable on the first and each subsequent anniversary of such policy on which a premium falls due: Provided, however, That such net level annual premium shall not exceed the net level annual premium on the nineteen year premium whole life plan for insurance of the same amount at an age one year higher than the age at issue of such policy. "(B) A net one-year term premium for such benefits provided for in the first policy year. "Reserves according to the Commissioners reserve valuation method Caler- ation of r for (i) life-insurance policies providing for a varying amount of insurance or requiring the payment of varying premiums, (ii) annuity and pure endowment contracts, (iii) disability and accidental death benefits in all policies and contracts, and (iv) all other benefits, except life insurance and endowment benefits in life-insurance policies, shall be calculated by a method consistent with the principles of this para- graph (2). "(3) In no event shall a company's aggregate reserves for all life- insurance policies, excluding disability and accidental death benefits, be less than the aggregate reserves calculated in accordance with the method set forth in paragraph (2) and the mortality table or tables and rate or rates of interest used in calculating nonforfeiture benefits for such policies. "(4) Reserves for any category of policies, contracts, or benefits Optional standards. as established by the Superintendent, may be calculated, at the option of the company, according to any standards which produce greater aggregate reserves for such category than those calculated according to the minimum standard herein provided, but the rate or rates of interest used shall not be higher than the corresponding rate or rates of interest used in calculating any nonforfeiture benefits pro- vided for therein: Provided,however, That reserves for participating ,ru of lowerinterec life-insurance policies may, with the consent of the Superintendent, be calculated according to a rate of interest lower than the rate of interest used in calculating the nonforfeiture benefits in such policies, with the further proviso that if such lower rate differs from the rate used in the calculation of the nonforfeiture benefits by more than one-half per centum the company issuing such policies shall file with 62 STAT.J 29

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