HARRY HUGHES, Governor

3225

FOR ANY CONTRACT WHICH PROVIDES, WITHIN THE SAME
CONTRACT BY RIDER OR SUPPLEMENTAL CONTRACT PROVISION, BOTH
ANNUITY BENEFITS AND LIFE INSURANCE BENEFITS THAT ARE IN
EXCESS OF THE GREATER OF CASH SURRENDER BENEFITS OR A RETURN
OF THE GROSS CONSIDERATIONS WITH INTEREST, THE MINIMUM
NONFORFEITURE BENEFITS SHALL BE EQUAL TO THE SUM OF THE
MINIMUM NONFORFEITURE BENEFITS FOR THE ANNUITY PORTION AND
THE MINIMUM NONFORFEITURE BENEFITS, IF ANY, FOR THE LIFE
INSURANCE PORTION COMPUTED AS IF EACH PORTION WERE A
SEPARATE CONTRACT. NOTWITHSTANDING THE PROVISIONS OF
SUBSECTIONS (E), (F), (G), (H), AND (I) ADDITIONAL BENEFITS
PAYABLE (1) IN THE EVENT OF TOTAL AND PERMANENT DISABILITY,
(2) AS REVERSIONARY ANNUITY OR DEFERRED REVERSIONARY ANNUITY
BENEFITS, OR (3) AS OTHER POLICY BENEFITS ADDITIONAL TO LIFE
INSURANCE, ENDOWMENT AND ANNUITY BENEFITS, AND
CONSIDERATIONS FOR ALL SUCH ADDITIONAL BENEFITS, SHALL BE
DISREGARDED IN ASCERTAINING THE MINIMUM NONFORFEITURE
AMOUNTS, PAID-UP ANNUITY, CASH SURRENDER, AND DEATH BENEFITS
THAT MAY BE REQUIRED BY THIS SECTION. THE INCLUSION OF SUCH
ADDITIONAL BENEFITS MAY NOT BE REQUIRED IN ANY PAID-UP
BENEFITS, UNLESS THE ADDITIONAL BENEFITS SEPARATELY WOULD
REQUIRE MINIMUM NONFORFEITURE AMOUNTS, PAID-UP ANNUITY, CASH
SURRENDER, AND DEATH BENEFITS.

(J) AFTER THE EFFECTIVE DATE OF THIS SECTION, ANY
COMPANY MAY FILE WITH THE COMMISSIONER A WRITTEN NOTICE OF
ITS ELECTION TO COMPLY WITH THE PROVISIONS OF THIS SECTION
AFTER A SPECIFIED DATE BEFORE THE SECOND ANNIVERSARY OF THE
EFFECTIVE DATE OF THIS SECTION. AFTER THE FILING OF NOTICE,
THEN UPON THE SPECIFIED DATE, WHICH SHALL BE THE OPERATIVE
DATE OF THIS SECTION FOR THAT COMPANY, THIS SECTION SHALL
BECOME OPERATIVE WITH RESPECT TO ANNUITY CONTRACTS
THEREAFTER ISSUED BY THE COMPANY. IF A COMPANY DOES NOT
MAKE AN ELECTION, THE OPERATIVE DATE OF THIS SECTION FOR THE
COMPANY SHALL BE THE SECOND ANNIVERSARY OF THE EFFECTIVE
DATE OF THIS SECTION.

414.

(a) This section shall be known as the Standard
Nonforfeiture Law[.] FOR LIFE INSURANCE.

(j) In the case of ordinary 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 1958 Standard Ordinary Mortality Table and the
rate of interest specified in the policy for calculating
cash surrender values and paid-up nonforfeiture benefits,
provided that such rate of interest [shall] MAY not exceed
[three and one-half] 3 1/2 percent [(3 1/2%)] per annum
except that a rate of interest not exceeding [four] 4
percent [(4%)] per annum may be used for policies issued on
or after July 1, 1978, and prior to [January 1, 1986, and
any differential based on sex shall reflect actuarial
expectancies and shall be subject to approval by the
Commissioner.] JULY 1, 1980, AND A RATE OF INTEREST NOT