HERBERT R. O'CONOR, GOVERNOR. 713

policy, of all such adjusted premiums shall be equal to the
sum of (i) the then present value of the future guaranteed
benefits provided for by the policy; (ii) two per cent of the
amount of insurance, if the insurance be uniform in amount,
or of the equivalent uniform amount, as hereinafter defined,
if the amount of insurance varies with duration of the policy;
(iii) forty per cent of the adjusted premium for the first policy
year; (iv) twenty-five per cent of either the adjusted premium
for the first policy year or the adjusted premium for a whole
life policy of the same uniform or equivalent uniform amount
with uniform premiums for the whole of life issued at the same
age for the same amount of insurance, whichever is less. Pro-
vided, however, that in applying the percentages specified in
(iii) and (iv) above, no adjusted premium shall be deemed to
exceed four per cent (4%) of the amount of insurance or level
amount equivalent thereto. The date of issue of a policy for
the purpose of this sub-section shall be the date as of which
the rated age of the insured is determined.

In the case of a policy providing an amount of insurance
varying with duration of the policy, the equivalent level amount
thereof for the purpose of this sub-section shall be deemed to
be the level amount of insurance provided by an otherwise
similar policy, containing the same endowment benefit or bene-
fits, if any, issued at the same age and for the same term, the
amount of which does not vary with duration and the benefits
under which have the same present value at the inception of
the insurance as the benefits under the policy.

All adjusted premiums and present values referred to in
this section shall be calculated on the basis of the1 Commis-
sioners 1941 Standard Ordinary Mortality Table for Ordinary
insurance and the 1941 Standard Industrial Mortality Table
for Industrial insurance and the rate of interest, not exceeding
three and one-half per cent (3^%) per annum, specified in the
policy for calculating cash surrender values and paid-up non-
forfeiture benefits. Provided, however, that in calculating the
present value of any paid-up term insurance with accompany-
ing pure endowment, if any, offered as a non-forfeiture benefit,
the rates of mortality assumed may be not more than one hun-
dred and thirty per cent (130%) of the rates of mortality
according to such applicable table. Provided, further, that
for insurance issued on a sub-standard basis, the calculation
of any such adjusted premiums and present values may be
based on such other table of mortality as may be specified by
the company and approved by the Commissioner.

(5) Any cash surrender value and any paid-up non-for-
feiture benefit, available under the policy in the event of de-
fault in a premium payment due at any time other than on
the policy anniversary, shall be calculated with allowance for