HARRY HUGHES, Governor

3373

exceeding 4 percent per annum may be used for policies
issued on or after July 1, 1978, and prior to 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,
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.

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 notice, then
upon the specified date (which shall be the operative date
of this subsection for the insurer), this subsection shall
become operative with respect to the ordinary policies
thereafter issued by the insurer. If an insurer does not
make an election, the operative date of this subsection for
that insurer shall be January 1, 1966.

(k) [In] EXCEPT AS TO INDUSTRIAL POLICIES ISSUED ON OR
AFTER THE EFFECTIVE OPERATIVE DATE OF SUBSECTION (K-l), 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 the rate of interest shall not exceed 3 1/2
percent per annum except that a rate of interest not
exceeding 4 percent per annum may be used for policies
issued on or after July 1, 1978 and prior to 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 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.