J. MILLARD TAWES, Governor                     1183

in the event of default in the premium payment due on any policy
anniversary shall be such that its present value as of such anniver-
sary shall be at least equal to the cash surrender value then pro-
vided for by the policy, or, if none is provided for, that cash sur-
render value which would have been required by this section in the
absence of the condition that premiums shall have been paid for at
least a specified period.

(f)   Except as provided in subsection (h), the adjusted premiums
for any policy shall be calculated on an annual basis and shall be
such uniform percentage of the respective premiums specified in the
policy for each policy year, excluding extra premiums on a substand-
ard policy, that the present value, at the date of issue of the policy,
of all such adjusted premiums shall be equal to the sum of:

(1)   The then present value of the future guaranteed benefits pro-
vided for by the policy;

(2)   Two percent (2%) of the amount of the insurance if the
insurance be uniform in amount, or of the equivalent uniform
amount, as hereinafter defined, if the amount of insurance varies
with the duration of the policy;

(3)   Forty percent (40%) of the adjusted premium for the first
policy year;

(4)   Twenty-five percent (25%) 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 uni-
form premiums for the whole of life issued at the same age for the
same amount of insurance, whichever is less.

Provided, however that in applying the percentages specified in
subdivisions (3) and (4) above, no adjusted premiums shall be
deemed to exceed four percent (4%) of the amount of insurance or
uniform amount equivalent thereto.

The date of issue of a policy for the purpose of this subsection
shall be the date as of which the rated age of the insured is deter-
mined.

(g)   In the case of a policy providing an amount of insurance
varying with the duration of the policy, the equivalent uniform
amount thereof for the purpose of the preceding subsection (f) shall
be deemed to be the uniform amount of insurance provided by an
otherwise similar policy, containing the same endowment benefit or
benefits, 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 date of issue as the bene-
fits under the policy, provided, however, that in the case of a policy
for a varying amount of insurance issued on the life of a child under
age ten (10), the equivalent uniform amount may be computed as
though the amount of insurance provided by the policy prior to the
attainment of age ten were the amount provided by such policy at
age ten (10).

(h) The adjusted premiums for any policy providing term insur-
ance benefits by rider or supplemental policy provision shall be equal
to (i) the adjusted premiums for an otherwise similar policy issued
at the same age without such term insurance benefits, increased,
during the period for which premiums for such term insurance bene-