§ 3747 - Mortality tables used in calculation of adjusted premiums and present values - Vermont Statutes

§ 3747. Mortality tables used in calculation of adjusted premiums and present values

This section shall not apply to ordinary policies issued on or after the operative date of section 3747a of this title as defined. All adjusted premiums and present values referred to in this subchapter shall for all policies of ordinary insurance issued before the operative date of section 3747a of this title be calculated on the basis of the Commissioners 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, and such calculations for all policies of industrial insurance shall be made on the basis of the Commissioners 1961 Standard Industrial Mortality Table. 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 provided that such rate of interest shall 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 April 12, 1973 and prior to January 1, 1980 and a rate of interest not exceeding five and one-half percent per annum may be used for policies issued on or after January 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, for ordinary insurance the rates of mortality assumed may be not more than those shown in the Commissioners 1958 Extended Term Insurance Table and for industrial insurance the rates of mortality may not be more than those shown in the Commissioners 1961 Industrial 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 company and approved by the commissioner. (1967, No. 344 (Adj. Sess.), § 1 (ch. 2, subch. 4, § 7); amended 1973, No. 53, § 1, eff. April 12, 1973; 1981, No. 43, § 2, eff. April 21, 1981; 1983, No. 55, § 5.)