1018                           LAWS OF MARYLAND                       [CH. 553

(2) If the loss experience of an insurer shows that its loss re-
serves, however estimated, are inadequate, the Commissioner shall
require the insurer to maintain loss reserves in such increased
amount as is needed to make them adequate.

83. Standard Valuation Law—Life Insurance.

(1)   Calculation of net value.—The Commissioner shall annually
value, or cause to be valued, the reserve liabilities (hereinafter called
reserves or net value) for all outstanding life insurance policies and
annuity and pure endowment contracts of every life insurer doing
business in this State except that in the case of an alien insurer, such
valuation shall be limited to its United States business, and may certi-
fy the amount of any such reserves, specifying the mortality table or
tables, rate or rates of interest and methods (net level premium
method or other) used in the calculation of such reserves. In calcu-
lating such reserves, he may use group methods and approximate
averages for fractions of a year or otherwise. In lieu of the valuation
of the reserves herein required of any foreign or alien insurer, he
may accept any valuation made, or caused to be made, by the insur-
ance supervisory official of any state or other jurisdiction when such
valuation complies with the minimum standard herein provided and
if the official of such state or jurisdiction accepts as sufficient and
valid for all legal purposes the certificate of valuation of the Com-
missioner when such certificate states the valuation to have been
made in a specified manner according to which the aggregate reserves
would be at least as large as if they had been computed in the man-
ner prescribed by the law of that state or jurisdiction.

Any such insurer which at any time shall have adopted any stand-
ard of valuation producing greater aggregate reserves than those
calculated according to the minimum standard herein provided may,
with the approval of the Commissioner, adopt any lower standard
of valuation, but not lower than the minimum herein provided.

(2)   Policies issued prior to Standard Nonforfeiture Law.—This
subsection shall apply only to those policies and contracts issued prior
to the operative date of section 414 (the Standard Nonforfeiture
Law).

The net value of all policies issued on or before the thirty-first
day of December, in the year nineteen hundred and two, shall be
based upon the American Experience Table of Mortality, and four
and one-half per cent interest per annum; and for all policies issued
subsequent to said thirty-first day of December, in the year nineteen
hundred and two, and on or before the thirty-first day of December,
in the year nineteen hundred and eighteen, upon the Actuaries Table
of Mortality, and four percent interest per annum; and for all poli-
cies except industrial issued subsequent to the thirty-first day of De-
cember in the year nineteen hundred and eighteen, upon the Ameri-
can Experience Table of Mortality or the American Men Ultimate
Table of Mortality and three and one-half per cent interest per an-
num; provided, that the Commissioner shall, upon the request of any
insurer, cause all policies of such insurer, issued subsequent to the
thirty-first day of December, in the year nineteen hundred and eight-
een, 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 pre-
liminary term method of valuation, as hereinafter modified, on the
basis of the American Experience Table of Mortality or the Ameri-