An Act to amend sections 1 and 5b of chapter V of the Life Insurance Act for the District of Columbia
PL 87-738 (H.R.8738), enacted 10/03/1962

76 STAT.] 
PUBLIC LAW 87-738-OCT. 3, 1962 
711 
Public Law 87-738 
AN ACT 
To amend sections 1 and 5b of chaptei- V of the Life Insurance Act for the 
District of Columbia. 
October 3, 1962 
[H. R. 8738] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That paragraph (1) 
of subsection (c) of section 1 of chapter V of the Life Insurance Act 
(D.C. Code, sec. 35-701 (c) (1)) is amended to read as follows: 
"(1) The minimum standard for the valuation of all such policies 
and contracts shall be the Commissioners reserve'valuation method 
defined in paragraph (2), 3i/^ per centum interest, and the following 
tables: 
"(i) For all ordinary policies of4ife insurance issued on the 
standard basis, excluding any disability and accidental death 
benefits in such policies, the Commissioners 1941 Standard Ordi-
nary Mortality Table for such policies issued prior to the opera-
tive date of the next to the last paragraph of section 5b(d) of 
this chapter, and the Commissioners 1958 Standard Ordinary 
Mortality Table for such policies issued on or after such opera-
tive date; provided that for any category of such policies issued 
on female risks all modified net premiums and present values 
referred to in this section may be calculated according to an age 
not more than three years younger than the actual age of the 
insured. 
"(ii) For all industrial life insurance policies issued on the 
standard basis, excluding any disability and accidental death 
benefits in such policies, the 1941 Standard Industrial Mortality 
Table for such policies issued prior to the operative date of the last 
paragraph of section 5b(d) of this chapter, and the Commis-
sioners 1961 Standard Industrial Mortality Table for such policies 
issued on or after such operative date. 
"(iii) For individual annuity and pure endowment contracts, 
excluding any disability and accidental death benefits in such 
policies, the 1937 Standard Annuity Mortality Table or, at the 
option of the company, the Annuity Mortality Table for 1949, 
Ultimate, or any modification of either of these tables approved 
Tjy the Superintendent. 
" (iv) For group annuity and pure endowment contracts, exclud-
ing any disability and accidental death benefits in such policies, 
the Group Annuity Mortality Table for 1951, any modification of 
such table approved by thfe Superintendent, or, at the option of 
the company, any of the tables or modifications of tables specified 
for individual annuity and pure endowment contracts. 
"(v) For total and permanent disability benefits in or supple-
mentary to ordinary policies or contracts, for policies or contracts 
issued on or after January 1, 1966, the tables of period 2 disable-
ment rates and the 1930 to 19^0 termination rates of the 1952 
Disability Study of the Society of Actuaries, with due regard to 
the type of benefit; for policies or contracts issued on or after 
January 1,1961, and prior to January 1,1966, either such tables or, 
at the option of the company, the Class (3) Disability Table 
(1926) ; and for policies issued prior to January 1,1961, the Class 
(3) Disability Table (1926). Any such table shall, for active 
lives, be combined with a mortality table permitted for calculating 
the reserves for life insurance policies. 
"(vi) For accidental death benefits in or supplementary to 
policies, for policies issued on or after January 1, 1966, the 1959 
Accidental Death Benefits Table; for policies issued on or after 
Life Insurance 
Act, D. C. 
Amendment. 
62 Stat. 28. 
Mortality tables. 
62 Stat. 32. 
Female risks. 
Industrial pol-
icies. 
Annuity and en-
dowment con-
tracts. 
Disability 
benefits. 
Accident £il 
death benefits. 
712 
PUBLIC LAW 87-738-OCT. 3, 1962 
[76 STAT. 
Group life 
insurance. 
74 Stat. 227; 
62 Stat. 33. 
Uniform per-
centage. 
Juvenile pol-
icies. 
Term riders. 
January 1, 1961, and prior to January 1, 1966, either such table 
or, at the option of the company, the Intercompany Double In-
demnity Mortality Table; and for policies issued prior to Janu-
ary 1,1961, the Intercompany Double Indemnity Mortality Table. 
Either table shall be combined with a mortality table permitted 
for calculating the reserves for life insurance policies. 
"(vii) For group life insurance, life insurance issued on the 
substandard basis and other special benefits, such tables as may be 
approved by the Superintendent." 
SEC. 2. Subsections (d), (e), and (g) of section 5b of chapter V of 
the Life Insurance Act (D.C. Code, sec. 35-705b(d)) are amended to 
read as follows: 
"(d) Except as provided in the third paragraph of this subsection, 
the adjusted premiums for any policy referred to in subsection (a) 
shall be calculated on an annual basis and shall be such uniform per-
centage of the respective premiums specified in the policy for each 
policy year, excluding any extra premiums charged because of impair-
ments or special hazards, that the present value, at the date of issue 
of the policy, of all such adjusted premiums shall be equal to the 
sum of (i) the then present value of the future guaranteed benefits 
provided for by the policy; (ii) 2 per centum of the amount of insur-
ance, if the insurance be uniform in amount, or of the equivalent 
uniform amount, as hereinafter defined, if the amount of insurance 
varies with duration of the policy; (iii) 40 per centum of the adjusted 
premium for the first policy year; (iv) 25 per centum of either the 
adjusted premium for the first policy year or the adjusted premium 
for a whole life policy of the same uniform or equivalent uniform 
amount with uniform premiums for the whole of life issued at the 
same age for the same amount of insurance, whichever is less: Pro-
vided^ riowever^ That in applying the percentages specified in (iii) 
and (iv) above, no adjusted premium shall be deemed to exceed 4 per 
centum of the amount of insurance or uniform amount equivalent 
thereto. 
"In the case of a policy providing an amount of insurance varying 
with duration of the policy, the equivalent uniform amount thereof 
for the purpose of this subsection shall be deemed to be the uniform 
amount of insurance provided by an otherwise similar policy, con-
taining the same endowment benefit or benefits, if any, issued at the 
same age and for the same term, the amount of which does not vary 
with duration and the benefits under which have the same present 
value at the date of issue as the benefits under the policy: Provided^ 
however^ That in the case of a policy providing a varying amount of 
insurance issued on the life of a child under age ten, the equivalent 
uniform amount may be computed as though the amount of insurance 
provided by the policy prior to the attainment of age ten were the 
amount provided by such policy at age ten. 
"The adjusted premiums for any policy providing term insurance 
benefits by rider or supplemental policy provision shall be equal to 
(a) the adjusted premiums for an otherwise similar policy issued at 
the same age without such term insurance benefits, increased, during 
the period for which premiums for such term insurance benefits are 
payable, by (b) the adjusted premiums for such term insurance, the 
foregoing items (a) and (b) being calculated separately and as speci-
fied in the first two paragraphs of this subsection except that, for 
the purposes of (ii), (iii), and (iv) of the first such paragraph, the 
amount of insurance or equivalent uniform amount of insurance used 
in the calculation of the adjusted premiums referred to in (b) shall be 
equal to the excess of the corresponding amount determined for the 
entire policy over the amount used in the calculation of the adjusted 
premiums in (a). 
76 STAT.] 
PUBLIC LAW 87-738-OCT. 3,1962 
713 
"Except as otherwise provided in the next succeeding paragraphs 
Adjusted premi-
of this subsection, all adjusted premiums and present values i-eferred ™^' calculations. 
to in this section shall for all policies of ordinary insurance be cal-
culated on the basis of the Commissioners 1941 Standard Ordinary 
Mortality Table: Provided^ That for any category of ordinary insur-
ance issued on female risks, adjusted premiums and present values 
may be calculated according to an age not more than three years 
younger than the actual age of the insured, and such calculations 
tor all policies of industrial insurance shall be made on the basis of 
the 1941 Standard Industrial Mortality Table. All calculations shall 
be made on the basis of the rate of interest, not exceeding 3I/2 p«r 
centum per annum, specified in the policy for calculating cash sur-
render values, if any, and paid-up nonforfeiture benefits: 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, the rates of mortality assumed may be not 
more than 130 per centum of the rates of mortality according to such 
applicable table: Provided further^ That for insurance issued on a sub-
standard 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 Superintendent. 
"In the case of ordinary pol icies issued on or after the operative date 
of this paragraph as defined herein, all adjusted premiums and present 
values referred to in this section shall be calculated on the basis of the 
Commissioners 1958 Standard Ordinary Mortality Table and the rate 
of interest, not exceeding 3 ^ per centum per annum, specified in the 
policy for calculating cash surrender values, if any, and paid-up non-
forfeiture benefits: 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 three years 
younger than the actual age of the insured: Provided^ however^ That 
m calculating the present value of any paid-up term insurance with 
accompanying pure endowment, if any, offered as a nonforfeiture bene-
fit, the rates of mortality assumed may be not more than those shown 
in the Commissioners 1958 Extended Term Insurance Table: Provided 
further,, That for insurance issued on a substandard basis, the calcula-
tion 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 Superintendent. After the effective date of the 
74 stat. 227. 
amendatory Act of I960, any company may file with the Superintend-
ent a written notice of its election to comply with the provisions of 
this paragraph after a specified date before January first, nineteen 
hundred and sixty-six. After the filing of such notice, then upon such 
specified date (which shall be the operative date of this paragraph for 
such company), this paragraph shall become operative witti respect 
to the ordinary policies thereafter issued by such company. 
If a 
operative date. 
company makes no such election, the operative date of this paragraph 
for such company shall be January first, nineteen hundred and sixty-
six. 
714 
PUBLIC LAW 87-738-OCT. 3, 1962 
[76 STAT. 
Industrial poli 
cies. 
"Ill the case of industrial policies issued on or after the operative 
'date of this paragraph as defined herein, all adjusted premiums and 
present values referred to in this section shall be calculated on the 
basis of the Commissioners 1961 Standard Industrial Mortality Table 
and the rate of interest, not exceeding 3% per centum per annum, 
specified in the policy for calculating cash surrender values, if any, 
and paid-up nonforfeiture benefits: Provided, however, That in cal-
culating the present value of any paid-up term insurance with accom-
panying pure endowment, if any, offered as a nonforfeiture benefit, 
the rates of mortality assumed may be not 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 Superintendent. 
After the effec-
tiA^e date of this amendatory Act of 1962, any company may file with 
the Superintendent a written notice of its election to comply with 
the provisions of this paragraph after a specified date before January 
first, nineteen hundred and sixty-eight. 
After the filing of such 
notice, then upon such- specified date (which shall be the operative 
date of this paragraph for such company), this paragraph shall be-
come operative with respect to the industrial policies thereafter issued 
Operative date, by sucli compaiiy. If a company makes no such election, the operative 
date of this paragraph for such company shall be January first, nine-
teen luindred and sixty-eight. 
"(e) Any cash surrender value and any paid-up nonforfeiture 
benefit, available vmder any such policy in the event of default in the 
payment of any premium due at any time other than on the policy 
anniversary, shall be calculated with allowance for the lapse of time 
and the payment of fractional premiums beyond the last preceding 
policy anniversary. 
All values referred to m subsections (b), (c), 
and (d.) may be calculated upon the assumption that any death benent 
is payable at the end of the policy or contract year of death. 
The 
net value of any paid-up additions, other than paid-up term additions, 
shall be not less than the dividends used to provide such additions. 
Notwithstanding the provisions of subsection (b), additional benefits 
payable (i) in the event of death or dismemberment by accident or 
accidental means, (ii) in the event of total and permanent disability,, 
(iii) as reversionary annuity or deferred reversionary annuity bene-
fits, (iv) as term insurance benefits provided by a rider or supple-
mental policy provision to which, if issued as a separate policy, this 
section would not apply, (v) as term insurance on the life of a child 
or on the lives of children provided in a policy on the life of a parent 
of the child, if such term insurance expires before the child's age is 
twenty-six, is uniform in amount after the child's age is one, and has 
not become paid up by reason of the death of a parent of the child, 
and (vi) as other policy benefits additional to life insurance and 
endowment benefits and premiums for all such additional benefits, 
shall be disregarded in ascertaining cash surrender values and non-
forfeiture benefits required by this section, and no such additional 
benefits shall be required to be included in any paid-up nonforfeiture 
benefits. 
Cash surrender 
value. 
76 STAT.] 
PUBLIC L
A
W 87-740-OCT. 3, 1962 
715 
"(g) After February 19, 1948, any comj^any may file with the 
Superintendent a written notice of its election to comply with the 
provisions of this section after a specified date before January 1,1950, 
After the filing of such notice, then upon such specified date (which 
shall be the operative date for such company), this section shall be-
come operative with respect to the policies and contracts thereafter 
issued by such company. If a company makes no such election, the 
operative date. 
operative date of this section for such company shall be January 
1, 1950: Provided^ however^ That the operative date of the last two 
paragraphs of subsection (d) shall be as stated therein." 
Approved October 3, 1962. 
Public Law 87-739 
A N A C T 
October 3, 1962 
To permit investment of funds of insurance companies organized within the 
[s. 3358] 
District of Columbia in obligations of the Inter-American Development Bank. 
Be it enacted hy the Senate and House of Representatives of the 
United Stages of America, in Congress assembled^ That section 35(1) 
D. C. 
of chapter III of the Act of June 19,1934 (48 Stat. 1152, as amended; ^^^"f^^^^ ^°^
D.C. Code, title 35, sec. 535 (1)), is amended to read as follows: 
m^^^. "" ^' "^*'*" 
"(1) Bonds, notes, or other evidences of indebtedness of the United 
^s stat. 494. 
States, any State, territory, or possession of the United States, the 
District of Columbia, the Dominion of Canada, any Province of the 
Dominion of Canada, or of any administration, agency, authority, or 
instrumentality of any of the political units enumerated; or obliga-
tions issued or guaranteed as to principal and interest by the Inter-
national Bank for Reconstruction and Development or by the Inter-
American Development Bank." 
SEC. 2. Section 18(1) of chapter II of the Act of October 9, 1940 
(54 Stat. 1072; D.C. Code, title 35, sec. 1321(1)), is amended to read 
es stat. 494. 
as follows: 
" (1) Bonds or other evidences of indebtedness of the United States, 
Fire, casualty, 
or of any State; or of the Dominion of Canada, or of any Province 
thereof; or obligations issued or guaranteed as to principal and interest 
by the International Bank for Reconstruction and Development or by 
the Inter-American Development Bank". 
Approved October 3, 1962. 
etc. 
Public Law 87-740 
^^ 
A C T 
October 3, 1962 
To amend the Life Insurance Act of the District of Columbia. 
rs.2977] 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled, That clause (a) 
Life instance 
of the proviso in the first sentence of section 11 of chapter V of the "
^ A
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Life Insurance Act, as amended (D.C. Code 35-711), is amended to o^up policies. 
read as follows: 
exemptions. 
"(a) That provisions (6) to (10), inclusive, shall not apply to ^^ ^tat. 333. 
policies issued to a creditor to insure debtors of such creditor, or to 
policies issued pursuant to section 10(8) of this chapter;". 
Approved October 3, 1962.