INSURANCE. 1833

four and one-half per cent, interest per annum; and for all policies issued
subsequent to said thirty-first day of December, in the year nineteen hun-
dred and two, and on or before the thirty-first day of December, in the
year nineteen hundred and eighteen, upon the Actuaries Table of. Mor-
tality, and four per cent, 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 and three and one-half per cent, interest per annum; pro-
vided, that the insurance commissioner shall, upon the request of any com-
pany, cause all policies of such company 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 term method of valuation,
as hereinafter modified, on the basis of the American Experience Table
of Mortality and three and one-half per cent, interest per annum. If the
premium charged for term insurance under a limited payment life pre-
liminary term policy providing for the payment of all premiums thereon
in less than twenty years from the date of the policy, or under an endow-
ment preliminary term policy, exceeds that charged for like insurance
under twenty payment life preliminary term policies of the same com-
pany, the reserve thereon at the end of any year, including the first, shall
not be less than 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 pre-
mium 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 poli-
cies 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 calcu-
lated 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 value of such obligation may,
if adequate, be employed.

In the determination 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 in all certificates of valuations
issued by the insurance commissioner or accepted by him under the pro-
visions of this section, the basis upon which the valuation has been 'made
shall be expressed.

All policies of life insurance issued in this state shall contain a clause
specifying the basis upon which the reserve is calculated; and every policy