3226

LAWS OF MARYLAND

Ch. 876

EXCEEDING 5 1/2 PERCENT PER ANNUM MAY BE USED FOR POLICIES
ISSUED ON OR AFTER JULY 1, 1980, AND PROVIDED THAT FOR ANY
CATEGORY OF ORDINARY INSURANCE ISSUED ON FEMALE RISKS,
ADJUSTED PREMIUMS AND PRESENT VALUES MAY BE CALCULATED
ACCORDING TO AN AGE NOT MORE THAN 6 YEARS YOUNGER THAN THE
ACTUAL AGE OF THE INSURED. 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 on 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] THE specified date (which shall be the
operative date of this subsection for [such] THE insurer),
this subsection shall become operative with respect to the
ordinary policies thereafter issued by [such] THE insurer.
If an insurer [makes no such] DOES NOT MAKE AN election, the
operative date of this subsection for [such] THAT 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 specified in the policy for calculating
cash surrender values and paid-up nonforfeiture benefits
provided that [such] THE rate of interest shall 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] JULY 1,
1980, AND A RATE OF INTEREST NOT EXCEEDING 5 1/2 PERCENT PER
ANNUM MAY BE USED FOR POLICIES ISSUED ON OR AFTER JULY 1,
1980. 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 1961 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.