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128 CORPORATIONS. [ART. XXIII
cate giving the net value of all policies in force in the company on
the thirty-first day of December of the preceding year, which calcula-
tion of the net value of the policies in force shall, for all policies issued
on or before the thirty-first day of December, in the year 1902, be based
upon the "American Experience Table of Mortality," and four and
one-half per cent, interest per annum; and for all policies issued subse-
quent to said thirty-first day of December, in the year nineteen hundred
and two, and before the thirty-first day of December, in the year nine-
teen hundred and eighteen, upon the actuaries table of mortality, and
four per cent, interest per annum; and for all policies issued subsequent
to the thirty-first day of December, in the year nineteen hundred and
eighteen, upon the American Experience Table of Mortality and three
and one-half per cent, interest per annum; provided, that the Insurance
Commissioner may, upon the request of any company, cause all policies
of such company issued on or after the first day of January, nineteen
hundred and nineteen, to be valued upon the American Experience
Table of Mortality and three and one-half per cent, interest per annum,
in accordance with the select and ultimate method which provides that
the rate of mortality during the first five years after the issuance of
said contracts, respectively, shall be calculated according to the follow-
ing percentages of the rates shown by the American Experience Table
of Mortality, to wit: first insurance year, fifty per centum thereof;
second insurance year, sixty-five per centum thereof; third insurance
year, seventy-five per centum thereof; fourth insurance year, eighty-
five per centum thereof; and fifth insurance year, ninety-five per cen-
tum thereof; and provided, further, that any 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, then and in every such
case the value of policies containing such promises and agreement shall
be calculated in such manner and upon such assumption as to 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 company for the valuation
of such obligation may, if adequate, be employed; and in the deter-
minations of the values of the policies, the calculations may be made
either seriatim or of the policies in groups, using approximate averages
for fractions of the year, and the net value of a policy at any time
shall be taken to be the net present value of the attained age upon the
basis adopted for the valuation as above provided of the sum insured
less the present value determined upon the same basis of the future net
premiums payable upon the policy; and in all certificates, of valuations
issued by the insurance commissioner or accepted by him under the
provisions of sub-section third, the basis upon which the valuation has
been made shall be expressed.
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