1152                            LAWS OF MARYLAND                      [CH. 553

31 last preceding, provided, the Commissioner may, in his discretion
for cause shown, extend the time for filing such valuation for not
more than two (2) calendar months. Such report of valuation shall
show, as reserve liabilities, the difference between the present mid-
year value of the promised benefits provided in the certificates of
such society in force and the present mid-year value of the future
net premiums as the same are in practice actually collected, not
including therein any value for the right to make extra assessments
and not including any amount by which the present mid-year value
of future net premiums exceeds the present mid-year value of prom-
ised benefits on individual certificates. At the option of any society,
in lieu of the above, the valuation may show the net tabular value.
Such net tabular value as to certificates issued prior to the effective
date of this subtitle shall be determined in accordance with the pro-
visions of law applicable prior to the effective date of this subtitle,
and as to certificates issued after the effective date of this subtitle
shall not be less than the reserves determined according to the Com-
missioners' Reserve Valuation method as hereinafter defined. If the
premium charged is less than the tabular net premium according to
the basis of valuation used, an additional reserve equal to the present
value of the deficiency in such premiums shall be set up and main-
tained as a liability. The reserve liabilities shall be properly adjusted
in the event that the mid-year or tabular values are not appropriate.

(b)   Reserves according to the Commissioners' Reserve Valuation
method, for the life insurance and endowment benefits of certificates
providing for a uniform amount of insurance and requiring the pay-
ment 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 certificates, over the then present value of any
future modified net premiums therefor. The modified net premiums
for any such certificate shall be such uniform percentage of the
respective contract premiums for such benefits that the present
value, at the date of issue of the certificate, of all such modified net
premiums shall be equal to the sum of the then present value of such
benefits provided for by the certificate and the excess of (1) over
(2), as follows:

(1)   A net level premium equal to the present value, at the date of
issue, of such benefits provided for after the first certificate 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 certificate 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 certificate; and

(2)   A net one-year term premium for such benefits provided for
in the first certificate year.

(c)   Reserves according to the Commissioners' Reserve Valuation
method for (1) life insurance benefits for varying amounts of bene-
fits or requiring the payment of varying premiums, (2) annuity and
pure endowment benefits, (3) disability and accidental death bene-
fits in all certificates and contracts, and (4) all other benefits except
life insurance and endowment benefits, shall be calculated by a
method consistent with the principles of subsection (b), above.