3354

LAWS OF MARYLAND

Ch. 553

The net value of all policies issued on or before the
thirty-first day of December, in the year nineteen hundred
and two, shall be based upon the American Experience Table
of Mortality, and four and one-half percent interest per
annum; and for all' policies issued subsequent to said
thirty-first day of December, in the year nineteen hundred
and two, and on or before the thirty-first day of December,
in the year nineteen hundred and eighteen, upon the
Actuaries Table of Mortality and four percent interest per
annum; and for all policies except industrial issued
subsequent to the thirty-first day of December in the year
nineteen hundred and eighteen, upon the American Experience
Table of Mortality or the American Men Ultimate Table of
Mortality and three and one-half percent interest per annum;
provided, that the Commissioner shall, upon the request of
any insurer, cause all policies of such insurer, issued
subsequent to the thirty-first day of December, in the year
nineteen hundred and eighteen, 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 preliminary 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 percent interest per annum. If the premium charged
for term insurance under a limited payment life preliminary
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 preliminary term policies of the same insurer, the
reserve thereon at the end of any year, including the first,
shall not be less then 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 calculated in such manner and upon such assumption
as to the rate of interest and mortality, that the value of
the policy so calculated 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 standard adopted by the insurer for the
value of such obligation may, if adequate, be employed.