J. MILLARD TAWES, Governor                     1019

can Men Ultimate Table of Mortality and three and one-half percent
interest per annum. If the premium charged for term insurance un-
der a limited payment life preliminary term policy providing for the
payment of all premiums thereon in less than twenty years from the
date of the policy, or under an endowment preliminary term policy,
exceeds that charged for like insurance under twenty-payment life
preliminary term policies of the same insurer, the reserve thereon
at the end of any year, including the first, shall not be less than the
reserve of a twenty-payment life preliminary term policy issued in
the same year and at the same age, together with an amount which
shall be equivalent to the accumulation of a net level premium suf-
ficient to provide for a pure endowment at the end of the premium
payment period equal to the difference between the value at the end
of such period of such a twenty-payment life preliminary term policy
and the full net level premium reserve at such time of such a limited
payment life or endowment policy. The premium payment period is
the period during which premiums are concurrently payable. The
value of all policies which contain any promise or agreement for the
purchase of the policy at any date prior to its maturity or its termina-
tion by death for a sum in excess of the value of the policy at such
date determined according to the standard of valuation herein pre-
scribed for such policy, shall be calculated in such manner and upon
such assumption as to the 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 insurer for the value of such obligation may,
if adequate, be employed.

The legal minimum standard for valuation of industrial policies
issued subsequent to the thirty-first day of December, in the year
nineteen hundred and eighteen, shall be the American Experience
Table of Mortality, with three and one-half percent interest per an-
num, according to the net level premium method or in accordance
with their terms by the modified preliminary term method herein-
above described, provided, that any insurer may value its industrial
policies on the basis of the Standard Industrial or the Sub-Standard
Industrial Mortality Table, or such other table or tables of mortality
as may be approved by the Commissioner, according to the net level
premium method, or in accordance with their terms by the modified
preliminary term method hereinabove described.

The Commissioner may, in his discretion, upon the request of any
life insurer so reporting to him, cause the net value of all or any
number of policies in force in such insurer to be calculated upon a
higher basis of reserve than that prescribed above by the assumption
of a lower rate of interest than that prescribed, or the assumption
of a higher rate of mortality by the substitution of the Actuaries
Table of Mortality for the American Experience Table of Mortality or
otherwise as the circumstances of the case may require; provided,
that in no case shall the net value so ascertained and taken as a basis
of reserve be less than that determined by the standard of valuation
above prescribed; and in every certificate of the valuation of policies
issued by the Commissioner the basis upon which the valuation is
calculated shall be stated, if so requested by the insurer.

(3) Policies issued subsequent to Standard Nonforfeiture Law.—
This subsection shall apply to only those policies and contracts issued