The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1908-08-28

AN ACT Providing For the Valuation o.
Outstanding Policies Of Life Insurance.
PASSED April 30 1867

AN AtI prOVldlug For the NaluatOn OF
Outstanding Policies Of Life Insurance.
PASSED April 30 1867
II Is enacted by the General Assembly as
follows:
Section I. The insurance commissioner
shall annually make valuations OF all out
standing policies, additions thereto, un-
paid dividends, and all other obligations
Of every life insurance corporation doing
business I'm this state All valuations
made by him, or by his authority. shall
be made upon the net premium basis. The
legal minimum standard for valuation Of
contracts issued before the first day OF
January, 1907 shall be the American Ex.
perience Table OF Mortality with interest
at four per centum per annum, and for
contracts issued after that date the same
table OF mortality with interest at 3ia per
cent per annum. The commissioner may
vary the standards OF interest and NOR
tality I'm the case Of corporations from
foreign countries as TO contracts issued by
such corporations in other countries than
the United States, and I'm particular cases
OF invalid lives and other extra hazards;
and value policies seriatim or In groups.
use approximate averages for fractions Of
year and otherwise, and accept the valu-
alton OF the department Of insurance Of
any other state or country II made upon
the basis OF, and according to, standards
not lower than herein required or author
tied, in place Of the valuation herein re-
qulrcd.
Sec. g. For the purpose OF making such
valuation the insurance commissioner may
employ competent actuary 10 do the
same, who shall be paid by the company
for which the services are rendered; but
nothing i'm this act shall prevent any COM
pany from making said valuation herein
contemplated, which may be received by
the insurance commissioner upon such
proof as he may determine. The expense
OF procuring such proof shall be paid by
the company.
Sec 3. Upon the valuation being made
as provided i'm the foregoing sections, the
insurance commissioner shall issue GER
stincate setting forth the corporate name
OF the company, its principal office, that
Il has fully complied with the provisions
OF this act, stating the amount OF the net
reserve value of outstanding policies, and
the table upon which the same Is com
puted. and that il is authorized to trans
act the business Of life insurance in this
state.
Sec. T. Policies issued by companies do
ing business i'm this state may provide for
not more than one year preliminary term
Insurance: Provided. however, that If the
premium charged for ON insurance un-
der a limited payment life preliminary
term policy providing for the payment Of
all premiums thereon In less than twenty
years from the date OF the policy, or un-
der an endowment preliminary term poll
cy. exceeds that charged for life insur
ance under whole life preliminary term
policies OF the same company, then the
reserve thereon at tho end OF any year, In.
Guiding the first, shall not be less than the
reserve on whole life preliminary term
policy issued I'm the same year and at the
same age, together with an amount which
shall be equivalent TO the accumulation of
q net level premium sufficient to provide
for n pure endowment at the end of the
premium payment period equal to the diff
ference between the value at the end OF
such period OF such a whole life prelimi-
nary-term policy and the fun level net
premium reserve at such time OF such a
limited payment life or endowment policy
Sec 5. This act shall take effect from
and after its passage, and all acts and
parts OF acts inconsistent herewith are
hereby repealed.