58-15-38. Adjusted premiums and present values--Computation.
476 words·~2 min read·
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Except as otherwise provided in §§ 58-15-43.1 to 58-15-43.11 , inclusive, all adjusted premiums and present values referred to in §§ 58-15-31 to 58-15-43 , inclusive, shall for all policies of ordinary insurance be calculated on the basis of the commissioner's 1958 standard ordinary mortality table; 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 six years younger than the actual age of the insured.
Such calculations for all policies of industrial insurance shall be made on the basis of the 1941 standard industrial mortality table. However, any insurer may file with the director of the Division of Insurance a written notice of its election that such adjusted premiums and present values shall be calculated on the basis of the commissioner's 1961 standard industrial mortality table, after a specified date before January 1, 1968. Further, whether or not any election has been made, such commissioner's 1961 standard industrial mortality table shall be the basis for such calculations as to all policies of industrial insurance issued on or after January 1, 1968.
All calculations shall be made on the basis of the rate of interest specified in the policy for calculating cash surrender values and paid - up nonforfeiture benefits, which rate of interest may not exceed three and one - half percent per annum except that a rate of interest not exceeding four percent per annum may be used for policies issued on or after July 1, 1973, and prior to July 1, 1978, and a rate of interest not exceeding five and one - half percent per annum may be used for policies issued on or after July 1, 1978, except that for any single premium whole life or endowment insurance policy a rate of interest not exceeding six and one - half percent per annum may be used.
However, 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 in the case of policies of ordinary insurance, may be not more than those shown in the commissioner's 1958 extended term insurance table, and, in the case of policies of industrial insurance, may be not more than one hundred thirty percent of the rates of mortality according to the 1941 standard industrial mortality table, except that when the commissioner's 1961 standard industrial mortality table becomes applicable, as hereinbefore provided, such rates of mortality assumed may be not more than those shown in the commissioner's 1961 industrial extended term insurance table.
Further 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 director.