HARRY HUGHES, Governor

3365

THE FIRST YEAR FOR THE ADDITIONAL EXCESS PREMIUM, AND WHICH
PROVIDES AN ENDOWMENT BENEFIT OR A CASH SURRENDER VALUE, OR
A COMBINATION, IN AN AMOUNT GREATER THAN THE ADDITIONAL
EXCESS PREMIUM, THE RESERVE ACCORDING TO THE COMMISSIONER'S
RESERVE VALUATION METHOD AS OF ANY POLICY ANNIVERSARY
OCCURRING ON OR BEFORE THE ASSUMED ENDING DATE DEFINED AS
THE FIRST POLICY ANNIVERSARY ON WHICH THE SUM OF ANY
ENDOWMENT BENEFIT AND ANY CASH SURRENDER VALUE THEN
AVAILABLE IS GREATER THAN THE ADDITIONAL EXCESS PREMIUM
SHALL, EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (E), BE
THE GREATER OF THE RESERVE AS OF THE POLICY ANNIVERSARY
CALCULATED AS DESCRIBED IN THE PRECEDING PARAGRAPH OR THE
RESERVE AS OF SUCH POLICY ANNIVERSARY CALCULATED AS
DESCRIBED IN THAT PARAGRAPH, BUT WITH (I) THE VALUE DEFINED
IN ITEM 1. AMOUNT DEFINED IN SUBPARAGRAPH (A) OF THAT
PARAGRAPH BEING REDUCED BY 15 PERCENT OF THE AMOUNT OF THE
ADDITIONAL EXCESS FIRST YEAR PREMIUM, (II) ALL PRESENT
VALUES OF BENEFITS AND PREMIUMS BEING DETERMINED WITHOUT
REFERENCE TO PREMIUMS OR BENEFITS PROVIDED FOR BY THE POLICY
AFTER THE ASSUMED ENDING DATE, (III) THE POLICY BEING
ASSUMED TO MATURE ON THAT DATE AS AN ENDOWMENT, AND (IV) THE
CASH SURRENDER VALUE PROVIDED ON THAT DATE BEING CONSIDERED
AS AN ENDOWMENT BENEFIT. IN MAKING THE ABOVE COMPARISON THE
MORTALITY AND INTEREST BASES STATED IN PARAGRAPHS (A-l) AND
(A-3) SHALL BE USED.

Reserves according to the commissioners reserve
valuation method for (i) life insurance policies providing
for a varying amount of insurance or requiring the payment
of varying premiums, (ii) group annuity and pure endowment
contracts purchased under a retirement plan or plan of
deferred compensation, established or maintained by an
employer (including a partnership or sole proprietorship) or
by an employee organization, or by both, other than a plan
providing individual retirement accounts or individual
retirement annuities under Section 408 of the Internal
Revenue Code, as amended, (iii) disability and accidental
death benefits in all policies and contracts, and (iv) all
other benefits, except life and endowment insurance benefits
in life insurance policies and benefits provided by all
other annuity and pure endowment contracts, shall be
calculated by a method consistent with the principles of
[the preceding paragraph] SUBSECTION (B-l), except that any
extra premiums charged because of impairments or special
hazards shall be disregarded in the determination of
modified net premiums.

(b-2) This section shall apply to all annuity
and pure endowment contracts other than group annuity and
pure endowment contracts purchased under a retirement plan
or plan of deferred compensation, established or maintained
by an employer (including a partnership or sole
proprietorship) or by an employee organization, or by both,
other than a plan providing individual retirement accounts
or individual retirement annuities under Section 408 of the