HARRY HUGHES, Governor

3381

ANY CASH SURRENDER VALUE AVAILABLE OTHER THAN IN THE
EVENT OF DEFAULT IN A PREMIUM PAYMENT DUE ON A POLICY
ANNIVERSARY, AND THE AMOUNT OF ANY PAID-UP NONFORFEITURE
BENEFIT AVAILABLE UNDER THE POLICY IN THE EVENT OF DEFAULT
IN A PREMIUM PAYMENT SHALL BE DETERMINED IN A MANNER
CONSISTENT WITH THOSE SPECIFIED FOR DETERMINING THE
ANALOGOUS MINIMUM AMOUNTS IN SUBSECTIONS (B), (C), (D), (E),
(K-l) AND (L). THE AMOUNTS OF ANY CASH SURRENDER VALUES AND
OF ANY PAID-UP NONFORFEITURE BENEFITS GRANTED IN CONNECTION
WITH ADDITIONAL BENEFITS SUCH AS THOSE LISTED AS SUBSECTIONS
(L)(l) THROUGH (6), INCLUSIVE, SHALL CONFORM WITH THE
PRINCIPLES OF SUBSECTION (M).

[(m)] (N) This section shall not apply to any OF THE
FOLLOWING: (1) reinsurance, (2) group insurance, (3) pure
endowment, (4) annuity or reversionary annuity contract,
[nor to any] (5) term policy of uniform amount WHICH
PROVIDES NO GUARANTEED FORFEITURE OR ENDOWMENT BENEFITS, or
renewal thereof, of [fifteen (15)] 20 years or less expiring
before age [66] 71, for which uniform premiums are payable
during the entire term of the policy, [nor to any] (6) term
policy of decreasing amount WHICH PROVIDES NO GUARANTEED
NONFORFEITURE OR ENDOWMENT BENEFITS, on which each adjusted
premium, calculated as specified in subsections (f), (g),
(h), (i), (j), [and] (k), AND (K-l) of this section is less
than the adjusted premium so calculated on a policy OF
UNIFORM AMOUNT, OR RENEWAL THEREOF, WHICH PROVIDES NO
GUARANTEED NONFORFEITURE OR ENDOWMENT BENEFITS, issued at
the same age and for the same initial amount of insurance
[for a term defined as follows: For ages at issue fifty (50)
and under, the term shall be fifteen (15) years; thereafter,
the term shall decrease one (1) year for each year of age
beyond fifty (50)] AND FOR A TERM OF 20 YEARS OR LESS
EXPIRING BEFORE AGE 71, FOR WHICH UNIFORM PREMIUMS ARE
PAYABLE DURING THE ENTIRE TERM OF THE POLICY (7) POLICY,
WHICH PROVIDES NO GUARANTEED NONFORFEITURE OR ENDOWMENT
BENEFITS, FOR WHICH NO CASH SURRENDER VALUE, IF ANY, OR
PRESENT VALUE OF ANY PAID-UP NONFORFEITURE BENEFIT, AT THE
BEGINNING OF ANY POLICY YEAR, CALCULATED AS SPECIFIED IN
SUBSECTIONS (D) THROUGH (K-l), EXCEEDS 2 1/2 1 1/2 PERCENT
OF THE AMOUNT OF INSURANCE AT THE BEGINNING OF THE SAME
POLICY YEAR.

FOR PURPOSES OF DETERMINING THE APPLICABILITY OF THIS
SECTION, THE AGE AT EXPIRY FOR A JOINT TERM LIFE INSURANCE
POLICY SHALL BE THE AGE AT EXPIRY OF THE OLDEST LIFE.

[(n)] (O) After June 1, 1947, any insurer may file
with the Commissioner a written notice of its election to
comply with the provisions of this section after a specified
date before April thirtieth, nineteen hundred and
forty-nine. After the filing of such notice, then upon
such specified date (which shall be the operative date for
such insurer), this section shall become operative with
respect to the policies thereafter issued by such insurer.