HARRY HUGHES, Governor

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RATE AS DEFINED IN THIS SUBSECTION FOR POLICIES ISSUED IN
THAT CALENDAR YEAR.

(9) (I) AT THE OPTION OF THE INSURER,
CALCULATIONS FOR ALL POLICIES ISSUED IN A PARTICULAR
CALENDAR YEAR MAY BE MADE ON THE BASIS OF A RATE OF INTEREST
NOT EXCEEDING THE NONFORFEITURE INTEREST RATE, AS DEFINED IN
THIS SUBSECTION, FOR POLICIES ISSUED IN THE IMMEDIATELY
PRECEDING CALENDAR YEAR.

(II)  UNDER ANY PAID-UP NONFORFEITURE
BENEFIT, INCLUDING ANY PAID-UP DIVIDEND ADDITIONS, ANY CASH
SURRENDER VALUE AVAILABLE, WHETHER OR NOT REQUIRED BY
SUBSECTION (B), SHALL BE CALCULATED ON THE BASIS OF THE
MORTALITY TABLE AND RATE OF INTEREST USED IN DETERMINING THE
AMOUNT OF PAID-UP NONFORFEITURE BENEFIT AND PAID-UP DIVIDEND
ADDITIONS, IF ANY.

(III)  AN INSURER MAY CALCULATE THE AMOUNT
OF ANY GUARANTEED PAID-UP NONFORFEITURE BENEFIT INCLUDING
ANY PAID-UP ADDITIONS UNDER THE POLICY ON THE BASIS OF AN
INTEREST RATE NO LOWER THAN THAT SPECIFIED IN THE POLICY FOR
CALCULATING CASH SURRENDER VALUES.

(IV)  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 1980 EXTENDED TERM INSURANCE TABLE FOR
POLICIES OF ORDINARY INSURANCE AND NOT MORE THAN THE
COMMISSIONERS 1961 INDUSTRIAL EXTENDED TERM INSURANCE TABLE
FOR POLICIES OF INDUSTRIAL INSURANCE.

(V)  FOR INSURANCE ISSUED ON A SUBSTANDARD
BASIS, THE CALCULATION OF ANY THE ADJUSTED PREMIUMS AND
PRESENT VALUES MAY BE BASED ON APPROPRIATE MODIFICATIONS OF
THE AFOREMENTIONED TABLES.

(VI)  ANY ORDINARY MORTALITY TABLES,
ADOPTED AFTER 1980 BY THE NATIONAL ASSOCIATION OF INSURANCE
COMMISSIONERS, THAT ARE APPROVED BY REGULATION PROMULGATED
BY THE COMMISSIONER FOR USE IN DETERMINING THE MINIMUM
NONFORFEITURE STANDARD MAY BE SUBSTITUTED FOR THE
COMMISSIONERS 1980 STANDARD ORDINARY MORTALITY TABLE WITH OR
WITHOUT TEN-YEAR SELECT MORTALITY FACTORS OR FOR THE
COMMISSIONERS 1980 EXTENDED TERM INSURANCE TABLE.

(VII)  ANY INDUSTRIAL MORTALITY TABLES,
ADOPTED AFTER 1980 BY THE NATIONAL ASSOCIATION OF INSURANCE
COMMISSIONERS, THAT ARE APPROVED BY REGULATION PROMULGATED
BY THE COMMISSIONER FOR USE IN DETERMINING THE MINIMUM
NONFORFEITURE STANDARD, MAY BE SUBSTITUTED FOR THE
COMMISSIONERS 1961 STANDARD INDUSTRIAL MORTALITY TABLE OR
THE COMMISSIONERS 1961 INDUSTRIAL EXTENDED TERM INSURANCE
TABLE.