EMERSON C. HARRINGTON, GOVERNOR. 219

mortality, to wit: first insurance year, fifty per centum there-
of; second insurance year^ sixty-five per centum thereof; third
insurance year, seventy-five per centum thereof; fourth insur-
ance year, eighty-five per centum thereof; and fifth insurance
year, ninety-five per centum thereof; and provided, further,
that any policies which contain any promise or agreement
for the purchase of the policy at any date prior to its ma-
turity 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 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 sur-
render of the policy at the date then attained, and for the
purpose of such valuation the standard adopted by the com-
pany for the valuation of such obligation may, if adequate, be
employed; and in the determinations of the values of the pol-
icies, the calculations may be made either seriatim or of the
policies in groups, using approximate averages for fractions of
the year, and the net value of a policy at any time shall be
taken to be the net present value of 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 valuations issued by the insurance commis-
sioner or accepted by him under the provisions of sub-section
third, the basis upon which the valuation has been made shall
be expressed.

No policy issued after the first day of January, nineteen
hundred and nineteen, shall be valued as term insurance unless
premiums are based upon net term rates; and no policy with
level premiums issued after said date shall be valued as term
insurance for the first policy year. The legal minimum stand-
ard for the valuation of industrial policies issued after the
first day of January, nineteen hundred and nineteen, shall be
the American experience table of mortality with interest at
three and one-half per centum per annum.

SEC., 2. And be it further enacted, That an additional sec-
tion be and the same hereby is added to said Article 23 of the
Annotated Code of Maryland, sub-title "Insurance Depart-
ment, " said additional section to follow immediately after