704 LAWS OF MARYLAND. [CH. 561

half per cent interest per annum; provided, that the Insurance
Commissioner shall, upon the request of any company, cause
all policies of such company issued subsequent to the thirty-
first day of December, in the year nineteen hundred and eigh-
teen, to be valued in accordance with the terms of the policy
contract, but in no case to be less than that determined by the
one-year term method of valuation, as hereinafter modified,
on the basis of the American Experience Table of Mortality
or the American Men Ultimate Table of Mortality and three
and one-half per cent interest per annum. If the premium
charged for term insurance under a limited payment life pre-
liminary term policy providing for the payment of all premiums
thereon in less than twenty years from the date of the policy,,
or under an endowment preliminary term policy, exceeds that
charged for like insurance under twenty-payment life prelim-
inary term policies of the same company, the reserve thereon
at the end of any year, including the first, shall not be less than
the reserve of a twenty-payment 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 policy. The premium payment period is the
period during which premiums are concurrently payable. The
value of all policies which contain any promise or agreement
for the purchase of the policy at any date prior to its maturity
or its termination by death for a sum in excess of the value
of the policy at such date determined according to the standard
of valuation herein prescribed for such policy, shall be cal-
culated in such manner and upon such assumption as to rate
of interest and mortality, that the value of the policy so cal-
culated shall at no time be less than the amount stipulated
therein, to be paid upon surrender of the policy at the date
then attained, and for the purpose of such valuation the stand-
ard adopted by the company for the value of such obligation
may, if adequate, be employed.

All policies of life insurance issued in this State shall con-
tain a clause specifying the basis upon which the reserve is
calculated. The legal minimum standard for valuation of indus-
trial policies issued subsequent to the thirty-first day of Decem-
ber, in the year nineteen hundred and eighteen, shall be the
American Experience Table of Mortality, with interest at three
and one-half per centum per annum, according to the level net
premium method or in accordance with their terms by the modi-
fied preliminary term method hereinabove described, provided,