HARRY W. NICE, GOVERNOR. 757

per annum; provided, that the Insurance Commissioner shall,
upon the request of any company, cause all policies of such
company issued subsequent to the thirty-first day of De-
cember, 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 preliminary
term policy providing for the payment of all premiums thereon
in less than twenty years from the date of the policy, or under
an endowment preliminary term policy, exceeds that charged
for like insurance under twenty payment life preliminary term
policies of the same company, the reserve thereon at the end
of any year, including the first, shall not be less than the re-
serve 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
premium 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 stand-
ard of valuation herein prescribed for such policy, 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 stipu-
lated therein, to be paid upon surrender of the policy at the
date then attained, and for the purpose of such valuation the
the standard adopted by the company for the value of such
obligation may, if adequate, be employed.

In the determination of the value of the policies, the calcu-
lations 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 con-
tain a clause specifying the basis upon which the reserve is
calculated; and every policy of life insurance issued in this