HERBERT R. O'CONOR, GOVERNOR, 707

(e) In no event shall a company's aggregate reserves for all
life insurance policies, excluding disability and accidental
death benefits, be less than the aggregate reserves calculated in
accordance with the method set forth in Paragraph (b) and the
mortality table or tables and rate or rates of interest used in
calculating non-forfeiture benefits for such policies. < • »

(d) Reserves for any category of policies, contracts or bene-
fits as established by the Commissioner, may be calculated, at
the option of the company, according to any standards which
produce greater aggregate reserves for such category than those
calculated according to the minimum standard herein provided,
but the rate or rates of interest used shall not be higher than
the corresponding rate or rates of interest used in calculating
any non-forfeiture benefits provided for therein. Provided,
however, that reserves for participating life insurance policies
may, with the consent of the Commissioner, be calculated ac-
cording to a rate of interest lower than the rate of interest
used in calculating the non-forfeiture benefits in such policies,
with the further proviso that if such lower rate differs from the
rate used in the calculation of the non-forfeiture benefits by
more than one-half per cent (%% )the company issuing such
policies shall file with the Commissioner a plan providing for
such equitable increases, if any, in the cash surrender values
and non-forfeiture benefits in such policies as the Commis-
sioner shall approve.

(e) If the gross premium charged by any life insurance
company on any policy or contract is less than the net premium
for the policy or contract according to the mortality table, rate
of interest and method used in calculating the reserve thereon,
there shall be maintained on such policy or contract a deficiency
reserve in addition to all other reserves required by law. For
each such policy or contract the deficiency reserve shall be the
present value, according to such standard, of an annuity of the
difference between such net premium and the premium charged
for such policy or contract, running for the remainder of the
premium-paying period.

112. Valuation of Policies on Lives of Infants. This section
shall apply to only those policies and contracts issued prior to
the operative date of Section 130B (the Standard Non-forfei-
ture Law).

Any company granting insurance on the lives of persons
under the age of ten years, and doing business in the State of
Maryland, or issuing policies on the lives of residents of this
State, must value all of its policies issued on the lives of per-
sons under the age of ten years, in accordance with the general
legal rules for the valuation of life insurance policies based