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Ch. 8
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60
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LAWS OF MARYLAND
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during which premiums are concurrently payable. The value of all
policies which contain any promise or agreement for the purchase
of the policy at any date prior to its maturity or its
termination by death' for a sum in excess of the value of the
policy at such date determined according to the standard of
valuation herein prescribed for such policy, shall be calculated
in such manner and upon such assumption as to the rate of
interest and mortality, that the value of the policy so
calculated shall at no time be less than the amount stipulated
therein, to be paid upon surrender of the policy at the date then
attained, and for the purpose of such valuation the standard
adopted by the insurer for the value of such obligation may, if
adequate, be employed.
The legal minimum standard for valuation of industrial
policies issued subsequent to the thirty-first day of December,
in the year nineteen hundred and eighteen, shall be the American
Experience Table of Mortality, with three and one-half percent
interest per annum, according to the net level premium method or
in accordance with their terms by the modified preliminary term
method hereinabove described, provided, that any insurer may
value its industrial policies on the basis of the Standard
Industrial or the Substandard Industrial Mortality Table, or such
other table or tables of mortality as may be approved by the
Commissioner, according to the net level premium method, or in
accordance with their terms by the modified preliminary term
method hereinabove described.
The Commissioner may, in his discretion, upon the request of
any life insurer so reporting to him, cause the net value of all
or any number of policies in force in such insurer to be
calculated upon a higher basis of reserve than that prescribed
above by the assumption of a lower rate of interest than that
prescribed, or the assumption of a higher rate of mortality by
the substitution of the Actuaries Table of Mortality for the
American Experience Table of Mortality or otherwise as the
circumstances of the case may require; provided, that in no case
shall the net value so ascertained and taken as a basis of
reserve be less than that determined by the standard of valuation
above prescribed; and in every certificate of the valuation of
policies issued by the Commissioner the basis upon which the
valuation is calculated shall be stated, if so requested by the
insurer.
(3) (a-3) (2) The calendar year statutory valuation
interest rates, [(i below)] (I) BELOW, shall be determined as
follows and the results rounded to the nearer 1/4 percent:
(i) For life insurance,
I = .03 plus W(Rl-.03) plus W(R2-.09);
2
(ii) For single premium immediate
annuities and for annuity benefits involving life contingencies
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