HARRY HUGHES, Governor

3371

(f)  Except AS TO POLICIES ISSUED ON OR AFTER THE
OPERATIVE DATE OF SUBSECTION (K-1), AND EXCEPT as provided
in subsection (h), the adjusted premiums for any policy
shall be calculated on an annual basis and shall be such
uniform percentage of the respective premiums specified in
the policy for each policy year, excluding extra premiums on
a substandard policy, that the present value, at the date of
issue of the policy, of all such adjusted premiums shall be
equal to the sum of:

(1)  The then present value of the future
guaranteed benefits provided for by the policy;

(2)  Two percent (2%) of the amount of the
insurance if the insurance be uniform in amount, or of the
equivalent uniform amount, as hereinafter defined, if the
amount of insurance varies with the duration of the policy;

(3)  Forty percent (40%) of the adjusted premium
for the first policy year;

(4)  Twenty-five percent (25%) of either the
adjusted premium for the first policy year or the adjusted
premium for the whole life policy of the same uniform or
equivalent uniform amount with uniform premiums for the
whole of life issued at the same age for the same amount of
insurance, whichever is less.

Provided, however that in applying the percentages
specified in subdivisions (3) and (4) above, no adjusted
premiums shall be deemed to exceed four percent (4%) of the
amount of insurance or uniform amount equivalent thereto.

The date of issue of a policy for the purpose of this
subsection shall be the date as of which the rated age of
the insured is determined.

(g)  [In] EXCEPT AS TO POLICIES ISSUED ON OR AFTER THE
OPERATIVE DATE OF SUBSECTION (K-1), IN the case of a policy
providing an amount of insurance varying with the duration
of the policy, the equivalent uniform amount thereof for the
purpose of the preceding subsection (f) shall be deemed to
be the uniform amount of insurance provided by an otherwise
similar policy, containing the same endowment benefit or
benefits, if any, issued at the same age and for the same
term, the amount of which does not vary with duration and
the benefits under which have the same present value at the
date of issue as the benefits under the policy, provided,
however, that in the case of a policy for a varying amount
of insurance issued on the life of a child under age [ten
(10)] 10, the equivalent uniform amount may be computed as
though the amount of insurance provided by the policy prior
to the attainment of age ten were the amount provided by
such policy at age [ten (10)] 10.