HARRY HUGHES, Governor

3355

The legal minimum standard for valuation of industrial
policies issued subsequent to the thirty-first day of
December, in the year nineteen hundred and eighteen, shall
be the American Experience Table of Mortality, with three
and one-half percent interest per annum, according to the
net level premium method or in accordance with their terms
by the modified preliminary term method hereinabove
described, provided, that any insurer may value its
industrial policies on the basis of the Standard Industrial
or the Substandard Industrial Mortality Table, or such other
table or tables of mortality as may be approved by the
Commissioner, according to the net level premium method, or
in accordance with their terms by the modified preliminary
term method hereinabove described.

The Commissioner may, in his discretion, upon the
request of any life insurer so reporting to him, cause the
net value of all or any number of policies in force in such
insurer to be calculated upon a higher basis of reserve than
that prescribed above by the assumption of a lower rate of
interest than that prescribed, or the assumption of a higher
rate of mortality by the substitution of the Actuaries Table
of Mortality for the American Experience Table of Mortality
or otherwise as the circumstances of the case may require;
provided, that in no case shall the net value so ascertained
and taken as a basis of reserve be less than that determined
by the standard of valuation above prescribed; and in every
certificate of the valuation of policies issued by the
Commissioner the basis upon which the valuation is
calculated shall be stated, if so requested by the insurer.

(3) This subsection shall apply to only those
policies and contracts issued on or after the operative date
of § 414 (the Standard Nonforfeiture Law), except as
otherwise provided in [paragraph] PARAGRAPHS (a-2) AND (A-3)
of this subsection for group annuity and pure endowment
contracts issued prior to the operative date.

(a-1) Except as otherwise provided in
[paragraph] PARAGRAPHS (a-2) AND (A-3) of this subsection,
the minimum standard for the valuation of all such policies
and contracts shall be the commissioners reserve valuation
methods defined in paragraphs (b-1), (b-2), and (e), 3 1/2
percent interest, or in the case of policies and contracts,
other than annuity and pure endowment contracts, issued on
or after July 1, 1978, 4 percent interest for such policies
issued prior to July 1, 1980, and 4 1/2 percent interest for
policies issued on or after July 1, 1980, and the following
tables:

(i) For all ordinary policies of life
insurance issued on the standard basis, excluding any
disability and accidental death benefits in such
policies--the Commissioners 1941 Standard Ordinary Mortality