J. MILLARD TAWES, Governor                     1021

(vii) For group life insurance, life insurance issued on the sub-
standard basis and other special benefits—such tables as may be ap-
proved by the Commissioner.

(b)   Reserves according to the Commissioners reserve valuation
method, for the life and endowment insurance benefits of policies
providing for a uniform amount of insurance and requiring the pay-
ment of uniform premiums shall be the excess, if any, of the present
value, at the date of valuation, of such future guaranteed benefits
provided for by such policies, over the then present value of any fu-
ture modified net premiums therefor. The modified net premiums for
any such policy shall be such uniform percentage of the respective
contract premiums for such benefits that the present value, at the
date of issue of the policy, of all such modified net premiums shall be
equal to the sum of the then present value of such benefits provided
for by the policy and the excess of (A) over (B), as follows:

(A)   A net level annual premium equal to the present value, at the
date of issue, of such benefits provided for after the first policy year,
divided by the present value, at the date of issue, of an annuity of one
per annum payable on the first and each subsequent anniversary of
such policy on which a premium falls due; provided, however, that
such net level annual premium shall not exceed the net level annual
premium on the nineteen year premium whole life plan for insurance
of the same amount at an age one year higher than the age at issue
of such policy.

(B)   A net one year term premium for such benefits provided for
in the first policy year.

Reserves according to the Commissioners reserve valuation
method for (i) life insurance policies providing for a varying amount
of insurance or requiring the payment of varying premiums, (ii)
annuity and pure endowment contracts, (iii) disability and accidental
death benefits in all policies and contracts, and (iv) all other bene-
fits, except life and endowment insurance benefits in life insurance
policies, shall be calculated by a method consistent with the prin-
ciples of this paragraph, except that any extra premiums charged
because of impairments or special hazards shall be disregarded in the
determination of modified net premiums.

(c)   In no event shall an insurer'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 nonforfeiture benefits
for such policies.

(d)   Reserves for any category of policies, contracts or benefits
as established by the Commissioner, may be calculated, at the option
of the insurer, according to any standards which produce greater ag-
gregate reserves for such category than those calculated according to
the minimum standard herein provided, but the rate or rates of in-
terest used shall not be higher than the corresponding rate or rates
of interest used in calculating any nonforfeiture benefits provided
for therein. Provided, however, that reserves for participating life
insurance policies may, with the consent of the Commissioner, be
calculated according to a rate of interest lower than the rate of in-
terest used in calculating the nonforfeiture benefits in such policies,