454

LAWS OF MARYLAND.

CHAP. 338.

calculation of the net value of the policies in force shall
for all policies issued on or before the 31st day of Decem-
ber, in the year 1902, be based upon the "American Ex-
perience Table of Mortality," and four and one-half per
cent, interest per annum, and for all policies issued sub-
sequent to said 31st day of December, in the year nine-
teen hundred and two, upon the Actuaries' Table of Mor-
tality, and four per cent, interest per annum ; provided, that
the Insurance Commissioner may, upon the request of any

Policies to b
valued;

company, cause all of the policies of such company to be
valued upon the latter basis ; and provided, further, that any
policies which contain any promise or agreement for the pur-
chase 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, then and in every
such .case the value of policies containing such promises and
agreement shall be calculated in such manner and upon such
assumptions 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 valuation of
such obligations may, if adequate, be employed ; and in the
determinations of the values of the policies, the calculations
may be made either seriatum or of policies in groups, using
approximate averages for fractions of a year, and the net
value of a policy at any time shall be taken to be the net
present value at the attained age upon the basis adopted for
the valuation as above provided of the sum insured less the
present value determined upon, the same basis of the future
net premiums payable upon the policy ; and in all certificates
of valuation issued by the Insurance Commissioner or accepted

When
valuations
are
acceptable.

by him under the provisions of sub-section third, the basis
upon which the valuation has been made shall be expressed.
Third. The Insurance Commissioner shall accept the valua-
tion made by the Insurance Commissioners of the State,
under whose authority a life insurance company 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 com-
pany shall furnish to the Insurance Commissioner of this State
a certificate from the Insurance Commissioners of such State,
setting forth the value, calculated on the data designated
above, of all the policies in force in the company on the
previous thirty-first day of December, and stating that said