Page:United States Statutes at Large Volume 62 Part 1.djvu/61

 62 STAT.] 80TH CONG., 2D SESS.-CH. 66-FEB. 19, 1948 provision that one-fifth of said reserve may be deducted, or may pro- vide therein that a deduction may be made of said 2 1/2 per centum or one-fifth of said reserve, at the option of the company: Provided further, That the policy may be surrendered to the company at its Surrender for cash home office within one month of the due date of defaulted premium for a specified cash value at least equal to the sum which would otherwise be available for the purchase of insurance as aforesaid: And provided further, That the company may defer payment for not more than six Deferred payment. months after the application therefor is made. A provision may also Default beforebene- be inserted in the policy that in event of default in a premium payment before such benefit becomes available, the reserve on any dividend additions then in force may at the option of the company be paid in cash or applied as a net premium to the purchase of paid-up term insurance for any amount not in excess of the face of the original policy. This section shall not apply to term insurance of twenty years Nonapplicability. or less. The net single premium rate employed in computing the r.t single premium term of temporary insurance or the amount of pure endowment insur- ance granted as a nonforfeiture value under any life-insurance policy may at the option of the company be based upon a table of mortality showing rates of mortality not greater than 130 per centum of those shown by the American Men Ultimate Table of Mortality instead of the table used in computing the reserve on the policy, or in case of substandard policies not greater than 130 per centum of the rates of mortality shown by the table of mortality approved by the Superin- tendent for computing the reserve on the policy, anything herein to the contrary notwithstanding. "SEC. 5b. STANDARD NONFORFEITURE LAw. -(a) In the case of policies issued on or after the operative date of this section, as defined in subsection (g) no policy of life insurance, except as stated in sub- Poet, p. 34. section (f), shall be issued or delivered in the District of Columbia Po, p: 33. unless it shall contain in substance the following provisions, or cor- responding provisions which in the opinion of the Superintendent are at least as favorable to the defaulting or surrendering policyholder- "(1) that, in event of default in any premium payment after Paid-up nonforfei- ., ture benefit. premiums have been paid one full year in the case of ordinary insurance or three full years in the case of industrial insurance, the company will grant, upon proper request not later than sixty days after the due date of the premium in default, a paid-up non- forfeiture benefit on a plan stipulated in the policy, effective as of such due date, of such value as may be hereinafter specified; "(2) that, upon surrender of the policy within sixty days Cash surrender after the due date of any premium payment in default after premiums have been paid for at least three full years in the case of ordinary insurance or five full years in the case of industrial insurance, the company will pay, in lieu of any paid-up non- forfeiture benefit, a cash surrender value of such amount as may be hereinafter specified; "(3) that a specified paid-up nonforfeiture benefit shall become effective as specified in the policy unless the person entitled to make such election elects another available option not later than sixty days after the due date of the premium in default. "(4) that, if the policy shall become paid up by completion of all premium payments or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary in the case of ordinary insurance or the fifth policy anniversary in the case of industrial insurance, the company will pay, upon surrender of the policy within thirty days after any policy anniversary, a cash surrender value of such amount as may be hereinafter specified; 31

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