INSURANCE 2143

policy to specify the mortality table, rate of interest and method of valuation
adopted for computing such reserve, if other than the level premium re-
serve method), less a specified maximum percentage (not more than two
and one-half) of the maximum amount insured by the policy and of exist-
ing dividend additions thereto, if any, and less any existing indebtedness to
the company on or secured by the policy; provided a company may, in lieu
of the provision herein permitted for the deduction from the reserve of a
sum not more than two and one-half per centum of the amount insured by
the policy and of any dividend additions thereto, insert in the policy a pro-
vision that one-fifth of said reserve may be deducted, or may provide
therein that a deduction may be made of said two and one-half per centum
or one-fifth of said reserve, at the option of the company. Provided,
further, that after premiums have been paid for ten full years, the policy
may be surrendered to the company at its home office, within the period of
grace, after the due date of the defaulted premium, for a specified cash
value at least equal to the sum which would otherwise be available for the
purchase of insurance as aforesaid; and provided, further, that the com-
pany may defer payment for not more than six months after the
application therefor is made. In the event that such application is not
made within the required period, it shall be provided that a stipulated
form of insurance shall automatically become effective. This provision shall
not be required in Term insurance of twenty years or less.

(G) A table showing in figures the cash values and the options avail-
able under the policy each year upon default in premium payments, during
at least the first twenty years of the policy, or during the premium paying
period, if less than twenty years.

(H) A provision that at any time within one year after default in the
payment of premiums the policy, if not previously surrendered for cash,
or if the period of extended insurance has not expired (if the policy should
be running under an extended insurance non-forfeiture provision) may be
reinstated upon written application and upon evidence of insurability satis-
factory to the Company and payment of arrears of premiums and the
payment or reinstatement of any other indebtedness to the Company upon
said policy, with interest on said premiums and indebtedness at a rate not
exceeding 6% per annum.

(I) The provisions of this section shall not apply to policies issued or
granted pursuant to the non-forfeiture provisions prescribed in Sub-section
F of this section.

(J) Any policy may be issued or delivered in this State which, in
the opinion of the Commissioner, contains provisions on any one or more
of the several foregoing requirements more favorable to the policyholder
than hereinbefore required.

(K) The policies of a life insurance company organized under the
laws of any other State, territory, or foreign government, may contain,
when issued or delivered in this State, any provision which may be required
by the laws of the State or government under which the company is organ-
ized, and the policies of a life insurance company, organized under the laws
of this State, when issued or delivered in any other State, territory, or
foreign country, may contain any provision required by the laws of such
State, territory, or foreign country, to be contained in the policies issued
therein.