1558

LAWS OF MARYLAND

Ch. 421

the Commissioner. Provided, however, that in calculating
the present value of any paid-up term insurance with
accompanying pure endowment, if any, offered as a
nonforfeiture benefit, the rates of mortality assumed may be
not more than those shown in the Commissioners 1958 Extended
Term Insurance Table- Provided, further, that for insurance
issued en a substandard basis, the calculation of any such
adjusted premiums and present values may be based on such
other table of mortality as may be specified by the insurer
and approved by the Commissioner. THE COMMISSIONER MAY

AUTHORIZE A RATE IN EXCESS OF__3 1/2 PERCENT BUT NOT IN

EXCESS OF 4 PERCENT PER ANNUM UPON A FINDING THAT SUCH

ACTION WILL REDUCE THE NET COST OF LIFE INSURANCE OFFERED BY
THE COMPANY IN DIRECT RELATIONSHIP TO THE REVENUE FROM SUCH
INCREASE.

After June 1, 1959, any insurer may file with the
Commissioner a written notice of its election to comply with
the provisions of this subsection after a specified date
before January 1, 1966. After the filing of such notice,
then upon such specified date (which shall be the operative
date of this subsection for such insurer), this subsection
shall become operative with respect to the ordinary policies
thereafter issued by such insurer. If an insurer makes no
such election, the operative date of this subsection for
such insurer shall be January 1, 1966.

(k) In the case of industrial policies issued on or
after the operative date of this subsection as defined
herein, all adjusted premiums and present values referred to
in this section shall be calculated on the basis of the
Commissioners 1961 Standard Industrial Mortality Table and
the rate of interest[, not exceeding three and one—half
percent (3 1/2%) per annum,] specified in the policy for
calculating cash surrender values and paid-up nonforfeiture
benefits PROVIDED THAT SUCH RATE OF INTEREST SHALL NOT
EXCEED THREE AND ONE-HALF PERCENT (3 1/2%) PER ANNUM EXCEPT
THAT A RATE OF INTEREST NOT EXCEEDING FOUR PERCENT (4%) PER
ANNUM MAY BE USED FOR POLICIES ISSUED ON OR AFTER THE
EFFECTIVE DATE OF THIS AMENDATORY ACT OF 1977 1978 AND PRIOR
TO JANUARY 1, 1986. Provided, however, that in calculating
the present value of any paid-up term insurance with
accompanying pure endowment, if any, offered as a
nonforfeiture benefit, the rates of mortality assumed may be
not more than those shown in the Commissioners 196 1
Industrial Extended Term Insurance Table. Provided,
further, that for insurance issued on a substandard basis,
the calculations of any such adjusted premiums and present
values may be based on such other table of mortality as may
be specified by the insurer and approved by the
Commissioner.

After December 31, 1963, any insurer may file with the
Commissioner a written notice of its election to comply with
the provisions of this subsection after a specified date
before January 1, 1968. After the filing of such notice,
then upon such specified date (which shall be the operative
date of this subsection for such insurer), this subsection