J. MILLARD TAWES, Governor                     1153

(d)   The present value of deferred payments due under incurred
claims or matured certificates shall be deemed a liability of the
society and shall be computed upon mortality and interest standards
prescribed in subsections (f) and (g) below.

(e)   Such valuation and underlying data shall be certified by a
competent actuary or, at the expense of the society, verified by the
actuary of the Department of Insurance of the state of domicile of
the society.

(f)   The minimum standards of valuation for certificates issued
prior to the effective date of this subtitle shall be those provided by
the law applicable immediately prior to the effective date of this sub-
title but not lower than the standards used in the calculating of rates
for such certificates.

(g)   The minimum standard of valuation for certificates issued
after the effective date of this subtitle shall be three and one-half
percent (3˝%) interest and the following tables:

(1)   For certificates of life insurance—American Men Ultimate
Table of Mortality, with Bowerman's or Davis' Extension thereof or
with the consent of the Commissioner, the Commissioners 1941
Standard Ordinary Mortality Table, the Commissioners 1941 Stand-
ard Industrial Mortality Table or the Commissioners 1958 Standard
Ordinary Mortality Table, using actual age of the insured for male
risks and an age not more than three years younger than the actual
age of the insured for female risks;

(2)   For annuity and pure endowment certificates, excluding any
disability and accidental death benefits in such certificates—the 1937
Standard Annuity Mortality Table or the Annuity Mortality Table
for 1949, Ultimate, or any modification of either of these tables
approved by the Commissioner;

(3)   For total and permanent disability benefits in or supplemen-
tary to life insurance certificates—Hunter's Disability Table, or the
Class (3) Disability Table (1926) modified to conform to the con-
tractual waiting period, or the tables of Period 2 disablement rates
and the 1930 to 1950 termination rates of the 1952 Disability Study
of the Society of Actuaries, with due regard to the type of benefit.
Any such table shall, for active lives, be combined with a mortality
table permitted for calculating the reserves for life insurance cer-
tificates ;

(4)   For accidental death benefits in or supplementary to life
insurance certificates—the Inter-Company Double Indemnity Mor-
tality Table or the 1959 Accidental Death Benefits Table. Either
table shall be combined with a mortality table permitted for calcu-
lating the reserves for life insurance certificates; and

(5)   For noncancellable accident and health benefits—the Class (3)
Disability Table (1926) with conference modifications or, with the
consent of the Commissioner, tables based upon the society's own
experience.

(h) The Commissioner may, in his discretion, accept other stand-
ards for valuation if he finds that the reserves produced thereby will
not be less in the aggregate than reserves computed in accordance
with the minimum valuation standard herein prescribed. The Com-
missioner may in his discretion, vary the standards of mortality