HARRY HUGHES, Governor

3367

contract but using the minimum VALUATION standards of
mortality and rate of interest prescribed in this section
and replacing the valuation net premium by the actual gross
premium in each contract year for which the valuation net
premium exceeds the actual gross premium. THE MINIMUM
VALUATION STANDARDS OF MORTALITY AND RATE OF INTEREST
REFERRED TO IN THIS SECTION ARE THOSE STANDARDS SET OUT IN
SUBSECTIONS (A-l) AND (A-3).. If the gross premium rates for
the policy or contract are not based consistently on a
suitable accepted or credible mortality basis or table, the
Commissioner may require additional reserves in accordance
with Section 77(3)(iv) of this Article.

FOR ANY LIFE INSURANCE POLICY ISSUED ON OR AFTER
JANUARY 1, 1986 FOR WHICH THE GROSS PREMIUM IN THE FIRST
POLICY YEAR EXCEEDS THAT OF THE SECOND YEAR AND FOR WHICH NO
COMPARABLE ADDITIONAL BENEFIT IS PROVIDED IN THE FIRST YEAR
FOR THE ADDITIONAL EXCESS PREMIUM AND WHICH PROVIDES AN
ENDOWMENT BENEFIT OR A CASH SURRENDER VALUE OR A COMBINATION
THEREOF IN AN AMOUNT GREATER THAN THE ADDITIONAL EXCESS
PREMIUM, THE FOREGOING PROVISIONS OF THIS SUBSECTION SHALL
BE APPLIED AS IF THE METHOD ACTUALLY USED IN CALCULATING THE
RESERVE FOR SUCH POLICY WERE THE METHOD DESCRIBED IN
SUBSECTION (B-l), IGNORING THE SECOND PARAGRAPH OF
SUBSECTION (B-l). THE MINIMUM RESERVE AT EACH POLICY
ANNIVERSARY OF SUCH A POLICY SHALL BE THE GREATER OF THE
MINIMUM RESERVE CALCULATED IN ACCORDANCE WITH SUBSECTION
(B-l), INCLUDING THE SECOND SUBPARAGRAPH OF THAT SUBSECTION
(B-l), OR THE MINIMUM RESERVE CALCULATED IN ACCORDANCE WITH
THIS SUBSECTION.

(F) IN THE CASE OF ANY PLAN OF LIFE INSURANCE WHICH
PROVIDES FOR FUTURE PREMIUM DETERMINATION, THE AMOUNTS OF
WHICH ARE TO BE DETERMINED BY THE INSURANCE COMPANY BASED ON
ESTIMATES OF FUTURE EXPERIENCE, OR IN THE CASE OF ANY PLAN
OF LIFE INSURANCE OR ANNUITY WHICH IS OF SUCH A NATURE THAT
THE MINIMUM RESERVES CANNOT BE DETERMINED BY THE METHODS
DESCRIBED IN SUBSECTIONS (B-l), (B-2) AND (E), THE RESERVES
WHICH ARE HELD UNDER ANY SUCH PLAN MUST, AS DETERMINED BY
REGULATIONS PROMULGATED BY THE COMMISSIONER:

(1)  BE APPROPRIATE IN RELATION TO THE BENEFITS
AND THE PATTERN OF PREMIUMS FOR THAT PLAN; AND

(2)  BE COMPUTED BY A METHOD WHICH IS CONSISTENT
WITH THE PRINCIPLES OF THIS STANDARD VALUATION LAW.

414.

(a)  This section shall be known as the Standard
Nonforfeiture Law for Life Insurance.

(b)  In the case of policies issued on or after the
operative date of this section as defined in subsection
[(n)] (O) of this section, no policy of life insurance,