860                                        LAWS OF MARYLAND                                Ch. 408

eighteen, upon the American Experience Table of Mortality or the American Men
Ultimate Table of Mortality and three and one-half percent interest per annum;
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 eighteen, 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 preliminary term method of valuation, as hereinafter modified, on the
basis of the American Experience Table of Mortality or the American Men
Ultimate Table of Mortality and three and one-half percent interest per annum. If
the premium charged for term insurance under 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 sufficient 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 [[premiums]]
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
termination by death for a sum in excess of the value of the policy at such date
determined according to the standard of valuation herein prescribed 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 annum, according to the net level premium method or
in accordance with their terms by the modified preliminary term method
hereinabove described, provided, that any insurer may value its industrial policies
on the basis of the Standard Industrial or the Substandard 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.