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150 CORPORATIONS. [ART. XXIII
statement he may deem necessary to be made relating to such associa-
tion.
In addition to the annual report herein required, each association
shall annually report to the Commissioner a valuation of its certificates
in force on December 31st, last preceding, excluding those issued
within the year for which the report is filed in cases" where the con-
tributions for the first year in whole or in part are used for current
mortality and expenses, provided the first report of valuation shall be
made as of December 31st, 1916. Such report of valuation shall show,
as contingent liabilities, the present mid-year value of the promised
benefits provided in the constitution and laws of such association under
certificates then subject to valuation; and, as contingent assets, the
present mid-year value of the future net contributions provided in the
constitution and laws as the same are in practice actually collected. At
the option of any association, in lieu of the above, the valuation may
show the net value of the certificates subject to valuation hereinbefore
provided, and said net value, when computed in case of monthly con-
tributions, may be the mean of the terminal values for the end of the
preceding and of the current insurance years.
Such valuation shall be certified by a competent accountant or actu-
ary; or, at the request and expense of the association, verified by the
actuary of the department of insurance of the home State of the asso-
ciation, and shall be filed with the Commissioner within ninety days
after the submission of the last preceding annual report. The legal
minimum standard of valuation for all certificates, except for disability
benefits, shall be the National Fraternal Congress Table of Mortality
as adopted by the National Fraternal Congress August 23, 1899, or,
at the option of the association, any higher table; or, at its option, it
may use a table based upon the association's own experience of at least
twenty years and covering not less than one hundred thousand lives with
interest assumption not more than four per centum per annum. Each
such valuation report shall set forth clearly and fully the mortality and
interest basis and the method of valuation. Any association providing
for disability benefits shall keep the net contributions for such benefits
in a fund separate and apart from all other benefit and expense funds
and the valuation of all other business of the association; provided that
where a combined contribution table is used by an association for both
death and permanent total disability benefits, the valuation shall be
according to tables of reliable experience, and in such case a separation
of the funds shall not be required.
The valuation herein provided for shall not be considered or re-
garded as a test of the financial solvency of the association, but each
association shall be held to be legally solvent so long as the funds in its
possession are equal to or in excess of its matured liabilities.
Beginning with the year 1917 a report of such valuation and an
explanation of the facts concerning the condition of the association
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