2136 ARTICLE 48A

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 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 precribed for such policy, shall be calculated
in such manner and upon such assumption as to rate of interest and mor-
tality, 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 stand-
ard adopted by the company for the value of such obligation may, if ade-
quate, be employed.

In the determination of the value 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 valuation issued
by the Insurance Commissioner or accepted by him under the provisions 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
of life insurance issued in this State shall have legibly inscribed at the
foot of the first page a brief description of the true nature of the policy.
The legal minimum standard for valuation of industrial policies issued
subsequent to the thirty-first day of December, in the year nineteen hun-
dred and eighteen, shall be the American Experience Table of Mortality
with interest at three and one-half per centum per annum provided, that
any company 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.

The Commissioner may, in his discretion, upon the request of any life
insurance company so reporting to him, cause the net value of all or any
number of the policies in force in such company 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 for the Ameri-
can Experience Table of Mortality or otherwise as the circumstances of the
case may require; provided, that in no case shall the net value so ascer-
tained 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.

The Commissioner, shall accept the valuation made by the Insurance
Commissioner of the State under whose authority a life insurance com-
pany is organized, or that of the state in which it may elect to have its
policies valued, when such valuations have been properly made on sound
and recognized principles, and legal basis not less than that prescribed
above; provided, that the company shall furnish to the Insurance Commis-