NY Ins L § 4221 (2021)
2021 New York Laws ISC - Insurance Article 42 - Life Insurance Companies and Accident and Health Insurance Companies and Legal Services Insurance Companies 4221 - Standard Nonforfeiture Law.

§ 4221. Standard nonforfeiture law. (a) In the case of policies issued on  or after the operative date of this section as defined in subsection (p) hereof, no policy of life insurance, except as stated in  subsection (o)  hereof,  shall  be  delivered  or issued for delivery in this state unless it shall  contain  in  substance  the  following  provisions,  or corresponding  provisions which in the opinion of the superintendent are at least as favorable to the defaulting or surrendering policyholder  as are  minimum  requirements  hereinafter specified and are essentially in compliance with subsection (n) hereof:  (1) That, in the event of default in any premium payment, the  company will  grant, upon proper request not later than sixty days after the due date of the premium in default, a paid-up  nonforfeiture  benefit  on  a plan  stipulated  in  the policy, effective as of such due date, of such value as may be  hereinafter  specified.  In  lieu  of  such  stipulated paid-up  nonforfeiture  benefit, the company may substitute, upon proper request not later than sixty days after the due date of the  premium  in default,  a  more  favorable  alternative  paid-up nonforfeiture benefit which provides a greater amount or longer period of death  benefits  or, if  applicable,  a  greater  amount  or  earlier  payment  of  endowment benefits.  (2) That, upon surrender of the policy within sixty days after the due date of any premium payment in default after premiums have been paid for at least three full years, the company will pay, in lieu of any  paid-up nonforfeiture  benefit,  a cash surrender value of such amount as may be hereinafter specified.  (3) That  a  specified  paid-up  nonforfeiture  benefit  shall  become effective  as specified in the policy unless the person entitled to make such election elects another available option not later than sixty  days after the due date of the premium in default.  (4) That, if the policy shall have become paid up by completion of all premium  payments  or if it is continued under any paid-up nonforfeiture benefit which became effective on or after the third policy anniversary, the company will pay, upon surrender of the policy  within  thirty  days after  any  policy anniversary, a cash surrender value of such amount as may be hereinafter specified.  (5) In the case  of  policies  which  provide  for  the  crediting  of additional  amounts  pursuant to subsection (b) of section four thousand two hundred thirty-two of  this  article,  under  which  cash  surrender values  are  adjusted  in  accordance  with  a  market-value  adjustment formula, which cause on a basis guaranteed  in  the  policy  unscheduled changes  in benefits or premiums, or which provide an option for changes in benefits or premiums other than a change to a new policy, a statement of the mortality table, interest rate, and method  used  in  calculating cash  surrender  values and any paid-up nonforfeiture benefits available under the policy. In the case of all other policies, a statement of  the mortality table and interest rate used in calculating the cash surrender values  and  any  paid-up  nonforfeiture  benefits  available  under the policy, together with a table showing the cash surrender value, if  any, and paid-up nonforfeiture benefit, if any, available under the policy on each  policy  anniversary either during the first twenty policy years or during the term of the policy, whichever is  shorter,  such  values  and benefits  to  be  calculated  upon  the  assumption  that  there  are no dividends or paid-up additions credited to the policy and that there  is no indebtedness to the company on the policy.  (5-a)  In  the  case  of  policies  which provide for the crediting of additional amounts pursuant to subsection (b) of section  four  thousand two  hundred  thirty-two of this article and which provide for surrender  charges in accordance with subsection (n-1) of this section, a statement as to any charges that will be imposed upon surrender of the policy.  (5-b)  In  the case of policies that provide for the adjustment of any cash surrender values  in  accordance  with  a  market-value  adjustment formula, a statement as to the times (which shall not be less frequently than  once  every  ten years after issuance of the policy) on which cash surrender values will be determined without the use of such a formula.  (6) A statement  that  the  cash  surrender  values  and  the  paid-up nonforfeiture  benefits available under the policy are not less than the minimum values and benefits required by any  statute  of  the  state  in which the policy is delivered; an explanation of the manner in which the cash surrender values and the paid-up nonforfeiture benefits are altered by  the existence of any paid-up additions credited to the policy or any indebtedness to the company on the policy; if a  detailed  statement  of the method of computation of the values and benefits shown in the policy is  not  stated therein, a statement that such method of computation has been filed with the insurance supervisory official of the state in which the policy is delivered; and a statement of the method  to  be  used  in calculating  the  cash surrender value and paid-up nonforfeiture benefit available under the policy on any policy  anniversary  beyond  the  last anniversary  for  which such values and benefits are consecutively shown in the policy.  (7) That the company shall deliver at issue to each holder of a policy under which additional amounts may be credited  pursuant  to  subsection (b)  of section four thousand two hundred thirty-two of this article, or under which cash surrender values and policy loan values are adjusted in accordance  with  a  market-value  adjustment   formula,   a   statement containing  such information as the superintendent prescribes, and shall mail to each such holder at least once each policy year or within  sixty days after the end of a policy year a statement as of a date during such year  as to the death benefit, cash surrender value and loan value under the policy (and any amount by which such cash surrender value  and  loan value  were  adjusted  in  accordance  with  a  market-value  adjustment formula) on such date  as  well  as  such  further  information  as  the superintendent  requires.  The  statement shall be addressed to the last post-office address of the policyholder known to the company.  (8) Any of the foregoing provisions or portions of this subsection not applicable by reason of  the  plan  of  insurance  may,  to  the  extent inapplicable, be omitted from the policy.   The  company  shall reserve the right to defer the payment of any cash surrender value for a period of six months after  demand  therefor  with surrender of the policy.  (b) (1) In the case of contracts issued on or after the operative date of  this  section  as  defined in subsection (p) hereof and prior to the operative date of section four thousand two hundred twenty-three of this article, no contract of annuity or pure endowment, except as  stated  in subsection (o) hereof, shall be delivered or issued for delivery in this state  unless  it  contains  in  substance  the following provisions, or corresponding provisions which in the opinion of the superintendent  are at least as favorable to the defaulting or surrendering contract holder:  (A) That in the event of default in any stipulated payment the company will  grant  a paid-up nonforfeiture benefit on a plan stipulated in the contract, effective as of such  due  date,  of  such  value  as  may  be hereinafter specified.  (B) A statement of the mortality table, if any, and interest rate used in  calculating  the  paid-up nonforfeiture benefits available under the contract, together with a table showing either the cash surrender  value or  the  paid-up  nonforfeiture  benefit,  if  any,  available  on  each  anniversary of the contract either  during  the  first  twenty  contract years  or  during the term of stipulated payments, whichever is shorter, such benefits to be calculated upon the assumption  that  there  are  no dividends  or  paid-up additions credited to the contract and that there is no indebtedness to the company on the contract.  (C) A statement that  the  paid-up  nonforfeiture  benefits  available under  the  contract  are not less than the minimum benefits required by any statute of  the  state  in  which  the  contract  is  delivered;  an explanation  of  the  manner in which the paid-up nonforfeiture benefits are altered by the existence of any paid-up additions  credited  to  the contract  or  any  indebtedness  to  the  company  on the contract; if a detailed statement of the method of computation of the benefits shown in the contract is not stated therein, a  statement  that  such  method  of computation  has  been  filed with the insurance supervisory official of the state in which the contract is delivered; and  a  statement  of  the method  to  be  used  in  calculating  the paid-up nonforfeiture benefit available under the contract on any contract anniversary beyond the last anniversary for which such  benefits  are  consecutively  shown  in  the contract.   If  a company shall provide for the payment of a cash surrender value, it shall reserve the right to defer the payment  of  such  value  for  a period  of  six  months  after  demand  therefor  with  surrender of the contract.  (2) Notwithstanding the requirements of this subsection, any  deferred annuity  contract  may  provide  that  if  the annuity allowed under any paid-up nonforfeiture benefit would be less than sixty dollars annually, the company may at its option grant a cash surrender value  in  lieu  of such  paid-up nonforfeiture benefit of such amount as may be required by subsection (f) hereof.  (c) (1) Any cash surrender value available under any  policy  referred to  in  subsection  (a)  hereof,  in  the  event of default in a premium payment due on any policy anniversary, whether or not required  by  such subsection,  shall be an amount not less than the excess, if any, of the present value, on such anniversary, of the  future  guaranteed  benefits which would have been provided for by the policy, including any existing paid-up additions, if there had been no default, over the sum of (i) the then  present  value  of the adjusted premiums as defined in subsections (g), (h), (i) and (k) hereof, corresponding to premiums which would have fallen due on and after such anniversary, and (ii)  the  amount  of  any indebtedness  to  the  company  on the policy, including interest due or accrued.  (2) In the case of any policy issued on or after the operative date of subsection (k) hereof, which provides  supplemental  life  insurance  or annuity  benefits  at  the option of the insured and for an identifiable additional premium by rider or supplemental policy provision,  the  cash surrender value referred to in paragraph one of this subsection shall be in  an  amount  not  less  than  the  sum of the cash surrender value as defined in such paragraph for an otherwise similar policy issued at  the same  age  without such rider or supplemental policy provision, the cash surrender value as defined in such paragraph for a policy which provides only the supplemental life insurance benefits otherwise provided by such rider or supplemental policy provision, and the cash surrender value  as defined  in  section  four  thousand  two  hundred  twenty-three of this article for a contract which  provides  only  the  supplemental  annuity benefits  otherwise  provided  by  such  rider  or  supplemental  policy provision.  (3) In the case of any family policy issued on or after the  operative date  of  subsection  (k)  hereof  as  defined  therein, which defines a  primary insured and provides term insurance on the life of the spouse of the primary insured expiring before the spouse's  age  seventy-one,  the cash  surrender  value  referred  to in paragraph one of this subsection shall  be an amount not less than the sum of the cash surrender value as defined in such paragraph for an otherwise similar policy issued at  the same  age  without such term insurance on the life of the spouse and the cash surrender value as defined in such paragraph  for  a  policy  which provides  only the benefits otherwise provided by such term insurance on the life of the spouse.  (4) Any cash surrender value available within thirty  days  after  any policy  anniversary  under  any such policy paid up by completion of all premium  payments  or  any  such  policy  continued  under  any  paid-up nonforfeiture benefit, whether or not required by subsection (a) hereof, shall be an amount not less than the present value, on such anniversary, of  the future guaranteed benefits provided for by the policy, including any existing paid-up additions, decreased by  any  indebtedness  to  the company on the policy, including interest due or accrued.  (5)  Every company must provide, to any policyowner who so requests in writing, within twenty business days from the date the  written  request is  received  by the company, a statement of the cash surrender value of the policy.  (d) Any paid-up  nonforfeiture  benefit  available  under  any  policy referred  to  in  subsection  (a)  hereof,  in the event of default in a premium payment due on any policy anniversary shall  be  such  that  its present value as of such anniversary shall be at least equal to the cash surrender  value then provided for by the policy or, if none is provided for, that cash surrender value which would have been  required  by  this section  in  the  absence of the condition that premiums shall have been paid for at least a specified period.  (e) (1) Any paid-up nonforfeiture benefit available under any  annuity or  pure endowment contract referred to in subsection (b) hereof, in the event of default in a stipulated payment due on any contract anniversary shall be such that its present value as of such anniversary shall be not less than the excess, if any, of the present value, on such anniversary, of the future guaranteed benefits which would have been provided for  by the  contract,  including  any  existing paid-up additions, if there had been no default, over the sum of (i)  the  then  present  value  of  the adjusted   stipulated   payments   defined   in  subsection  (g)  hereof corresponding to stipulated payments which would have fallen due on  and after  such  anniversary, and (ii) the amount of any indebtedness to the company on the contract, including interest due or accrued.  (2) In determining the benefits referred to in  paragraph  one  hereof and  in  calculating  the  adjusted  stipulated  payments referred to in subsection (g) hereof, in the case of annuity contracts under  which  an election  may  be  made  to  have  annuity payments commence at optional dates, the annuity payments shall be deemed to commence at a date  which shall  be  the  latest permitted by the contract for the commencement of such payments but not later than the contract  anniversary  nearest  the annuitant's   seventieth  birthday  or  the  tenth  anniversary  of  the contract, whichever is later;  and  the  stipulated  payments  shall  be deemed  to  be payable for the longest period during which they would be payable if election were made to have the annuity payments  commence  at such date.  (f)  Any cash surrender value allowed by any annuity or pure endowment contract referred to in subsection (b) hereof  and  the  present  value, under  any  optional provision, of future benefits commencing on the due date of the stipulated payment in default shall each be at  least  equal  to  the  then present value of the minimum paid-up nonforfeiture benefit required by subsection (e) hereof.  (g) (1) This subsection shall not apply to policies issued on or after the operative date of subsection (k) as defined herein.  (2) Except as provided in paragraph four hereof, the adjusted premiums for  any policy referred to in subsection (a) hereof shall be calculated on an  annual  basis  and  shall  be  such  uniform  percentage  of  the respective  premiums  specified  in  the  policy  for  each policy year, excluding amounts stated in  the  policy  as  extra  premiums  to  cover impairments  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) two percent of the amount of insurance, 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) forty percent of the adjusted premium for the first policy year; (iv) twenty-five percent 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. Provided, however, that  in applying  the  percentages  specified in items (iii) and (iv) hereof, no adjusted premium shall be deemed to exceed four percent of the amount of insurance or uniform amount equivalent thereto. The date of issue  of  a policy  for the purpose of this subsection shall be the date as of which the rated age of the insured is determined.  (3) 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, containing 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  (including policies  in  which  the  death benefit prior to a date specified in the policy does not exceed the premiums paid  with  interest,  or  the  cash value  of the policy if greater) issued on the life of a child under age ten, the equivalent uniform amount of insurance shall be  calculated  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.  (4)  The  adjusted  premiums  for  any policy providing term insurance benefits by rider or supplemental policy provision shall be equal to (i) 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 (ii) the  adjusted  premiums for such term insurance, the foregoing items (i) and (ii) being calculated separately and as specified in paragraphs  two and  three hereof except that, for the purposes of items (ii), (iii) and (iv) of paragraph two hereof, the  amount  of  insurance  or  equivalent uniform  amount  of  insurance  used  in the calculation of the adjusted premiums referred to in item (ii) of this paragraph 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 item (i) of this paragraph.  (5) The adjusted stipulated payments for any annuity or pure endowment contract referred to in subsection (b) hereof shall be calculated on  an  annual  basis  and  shall  be  such uniform percentage of the respective stipulated payments specified in the contract  for  each  contract  year that  the  present  value,  at the date of issue of the contract, of all such  adjusted  stipulated payments shall be equal to the sum of (i) the then present value of the future guaranteed benefits provided for by the contract; (ii) twenty percent of the adjusted stipulated payment for the first contract year; and (iii) two percent of  the  adjusted  stipulated payment  for  the first contract year for each year not exceeding twenty during which stipulated payments are payable.  (6) Except as otherwise provided  in  subsections  (h),  (i)  and  (j) hereof, all adjusted premiums, adjusted stipulated payments, and present values  referred  to in this section shall be calculated on the basis of (i) the rate of interest, not exceeding three and one-half  percent  per annum,  specified  in  the  policy  or  contract  for  calculating  cash surrender values, if any, and paid-up nonforfeiture benefits; and (ii) a mortality  table  which  shall   be:   for   ordinary   insurance,   the Commissioners' 1941 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  three  years younger than the actual age of the insured; for industrial insurance, the 1941 Standard Industrial Mortality Table;  for annuity  and  pure endowment contracts, either the 1937 Standard Annuity Mortality Table, the Annuity Mortality  Table  for  1949  Ultimate,  any modification of either of these tables approved by the superintendent or any  other table approved by the superintendent. 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 one hundred and thirty percent of the rates of mortality according  to  such  applicable 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.  (h) (1) This subsection shall not apply to ordinary policies issued on or after the operative date of subsection (k) hereof.  (2)  In the case of ordinary policies issued on or after the operative date of this subsection, all adjusted premiums and present values  shall be  calculated  on the basis of the Commissioners 1958 Standard Ordinary Mortality Table and the rate of interest specified  in  the  policy  for calculating cash surrender values and paid-up nonforfeiture benefits not exceeding  three and one-half percent per annum except that four percent per annum may be used for policies issued on or after  June  thirteenth, nineteen  hundred  seventy-four  and  prior  to  January first, nineteen hundred seventy-nine, and a rate of  interest  not  exceeding  five  and one-half  percent  per annum may be used for policies issued on or after January first, nineteen hundred  seventy-nine,  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; 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 those shown  in  the Commissioners  1958  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.  (3) Any company may file with the superintendent a written  notice  of its  election  to  comply with the provisions of this subsection after a specified date before January first, nineteen hundred  sixty-six.  After the filing of such notice, then upon such specified date (which shall be the operative date of this subsection for such company), this subsection shall  become operative with respect to the ordinary policies thereafter issued by such company.  If  a  company  makes  no  such  election,  the operative  date  of  this  subsection  for such company shall be January first, nineteen hundred sixty-six.  (i) (1) In the case of industrial policies  issued  on  or  after  the operative  date  of  this  subsection, all adjusted premiums and present values shall be calculated  on  the  basis  of  the  Commissioners  1961 Standard  Industrial  Mortality Table and the rate of interest specified in  the  policy  for  calculating  cash  surrender  values  and  paid-up nonforfeiture  benefits  not  exceeding  three  and one-half percent per annum except that four percent per annum may be used for policies issued on or after June thirteenth, nineteen hundred seventy-four and prior  to January  first, nineteen hundred seventy-nine and a rate of interest not exceeding five and one-half percent per annum may be used  for  policies issued  on  or  after  January  first,  nineteen  hundred  seventy-nine; 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  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.  (2)  Any  company may file with the superintendent a written notice of its election to comply with the provisions of this  subsection  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 subsection for such company), this subsection  shall  become  operative  with  respect  to  the  industrial policies  thereafter  issued by such company. If a company makes no such election, the operative date of this subsection for such  company  shall be January first, nineteen hundred and sixty-eight.  (j)  In  the  case  of individual annuity and pure endowment contracts issued on or after the operative date of paragraph three  of  subsection (c)  of section four thousand two hundred seventeen of this article, and prior to the  operative  date  of  section  four  thousand  two  hundred twenty-three  of  this  article,  all  adjusted  stipulated payments and present values referred to in this section shall be  calculated  on  the basis  of  the  Annuity  Mortality  Table  for  1949,  Ultimate,  or any modification of this table approved by the superintendent, and the  rate of  interest  not  exceeding  four  percent  per annum, specified in the contract for calculating cash surrender  values,  if  any,  and  paid-up nonforfeiture  benefits,  except  that, if such rate of interest exceeds three and one-half percent per annum, there  shall  be  substituted  for such mortality table the 1971 Individual Annuity Mortality Table, or any modification of this table approved by the superintendent.  (k) (1) This subsection shall apply to all policies issued on or after the operative date as defined in this subsection.  (2)  Except  as  provided  in  paragraph eight of this subsection, the adjusted premiums for any policy shall be calculated on an annual  basis and  shall  be  such  uniform  percentage  of  the  respective  premiums specified in the policy for each policy year, excluding amounts  payable as  extra  premiums  to  cover  impairments  or special hazards and also  excluding any uniform annual contract charge or policy fee specified  in the  policy  in  a statement of the method to be used in calculating the cash surrender values  and  paid-up  nonforfeiture  benefits,  that  the present  value,  at  the  date  of  issue of the policy, of all 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) one percent of either the amount of  insurance,  if  the  insurance  be  uniform  in amount,  or  the average amount of insurance at the beginning of each of the first ten policy years; and (iii) one hundred twenty-five percent of the nonforfeiture net level premium as  hereinafter  defined.  Provided, however,  that  in  applying  the percentage specified in (iii) above no nonforfeiture net level premium shall be deemed to exceed  four  percent of  either  the  amount  of  insurance,  if  the insurance be uniform in amount, or the average amount of insurance at the beginning of  each  of the  first  ten  policy  years.  The  date  of issue of a policy for the purpose of this subsection shall be the date as of which the  rated  age of the insured is determined.  (3)  The nonforfeiture net level premium shall be equal to the present value, at the date of issue of the policy, of  the  guaranteed  benefits provided  for by the policy divided by the present value, at the date of issue of the policy, of an annuity of one per annum payable on the  date of issue of the policy and on each anniversary of such policy on which a premium falls due.  (4)  In  the case of policies which cause on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or which provide  an option  for changes in benefits or premiums other than a change to a new policy, the adjusted premiums and  present  values  shall  initially  be calculated  on  the  assumption that future benefits and premiums do not change from those stipulated at the date of issue of the policy. At  the time  of any such change in the benefits or premiums the future adjusted premiums, nonforfeiture net level premiums and present values  shall  be recalculated  on the assumption that future benefits and premiums do not change from those stipulated by the policy immediately after the change.  (5)  Except  as  otherwise  provided  in  paragraph  eight   of   this subsection,  the  recalculated  future  adjusted  premiums  for any such policy shall  be  such  uniform  percentage  of  the  respective  future premiums specified in the policy for each policy year, excluding amounts payable  as extra premiums to cover impairments and special hazards, and also  excluding  any  uniform  annual  contract  charge  or  policy  fee specified  in  the  policy  in  a  statement of the method to be used in calculating  the  cash  surrender  values  and   paid-up   nonforfeiture benefits,  that  the  present  value, at the time of change to the newly defined benefits or premiums, of all such future adjusted premiums shall be equal to the excess of  (A) the sum of  (i) the then present value of  the  then  future  guaranteed  benefits provided for by the policy and  (ii) the additional expense allowance, if any, over  (B)  the  then  cash  surrender value, if any, or present value of any paid-up nonforfeiture benefit under the policy.  (6) The additional expense allowance, at the time of the change to the newly defined benefits or premiums, shall be the sum of (i) one  percent of  the  excess,  if positive, of the average amount of insurance at the beginning of each of the first ten policy years subsequent to the change over the average  amount  of  insurance  prior  to  the  change  at  the beginning  of  each of the first ten policy years subsequent to the time of the most recent previous change, or, if there has  been  no  previous change,  the  date  of  issue  of  the  policy;  and  (ii)  one  hundred  twenty-five percent of the increase, if positive, in  the  nonforfeiture net level premium.  (7) The recalculated nonforfeiture net level premium shall be equal to the  result  obtained  by  dividing subparagraph (A) by subparagraph (B) hereof where:  (A) equals the sum of  (i) the nonforfeiture net level premium applicable prior to the change times the present value of an annuity of one per annum payable  on  each anniversary  of the policy on or subsequent to the date of the change on which a premium would have fallen due had the change not occurred, and  (ii) the present value of the increase in future  guaranteed  benefits provided for by the policy, and  (B) equals the present value of an annuity of one per annum payable on each anniversary of the policy on or subsequent to the date of change on which a premium falls due.  (8)  Notwithstanding  any  other  provision  of this subsection to the contrary, in the case of a policy issued on a  substandard  basis  which provides  reduced  graded  amounts  of insurance so that, in each policy year, such policy has the same tabular mortality cost  as  an  otherwise similar  policy  issued  on  the  standard  basis  which provides higher uniform amounts of insurance, adjusted premiums and present  values  for such  substandard  policy  may  be  calculated  as  if it were issued to provide such higher uniform amounts of insurance on the standard basis.  (9) All adjusted premiums and  present  values  referred  to  in  this section  shall  for  all policies of ordinary insurance be calculated on the basis of  (A) the Commissioners 1980 Standard Ordinary Mortality Table, or  (B) at the election of the company for any one or more specified plans of life insurance, the Commissioners 1980  Standard  Ordinary  Mortality Table with Ten-Year Select Mortality Factors; and shall for all policies issued  in  a  particular  calendar year be calculated on the basis of a rate of interest  not  exceeding  the  nonforfeiture  interest  rate  as defined  in  this  subsection for policies issued in that calendar year. Provided, however, that:  (i) At the option of the company, calculations for all policies issued in a particular calendar year may be made on the  basis  of  a  rate  of interest  not  exceeding  the nonforfeiture interest rate, as defined in this subsection,  for  policies  issued  in  the  immediately  preceding calendar year.  (ii)  Under  any  paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether  or  not required  by  subsection (a) hereof, shall be calculated on the basis of the mortality table and rate of interest used in determining the  amount of such paid-up nonforfeiture benefit and paid-up dividend additions, if any.  (iii)  A  company  may  calculate the amount of any guaranteed paid-up nonforfeiture benefit including any paid-up additions under  the  policy on  the  basis  of  an interest rate no lower than that specified in the policy for calculating cash surrender values.  (iv) 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 those shown in the Commissioners 1980 Extended Term Insurance Table.  (v) For insurance issued on a substandard basis,  the  calculation  of any   such  adjusted  premiums  and  present  values  may  be  based  on appropriate modifications of the aforementioned tables.  (vi) Any ordinary mortality tables,  adopted  after  nineteen  hundred eighty  by  the  National Association of Insurance Commissioners (or any  modifications thereof for any specified class or classes of risks), that are approved by the superintendent for use in  determining  the  minimum nonforfeiture  standard  may  be  substituted for the Commissioners 1980 Standard  Ordinary  Mortality  Table  with  or  without  Ten-Year Select Mortality Factors or for the Commissioners 1980 Extended Term  Insurance Table.  (10)  The  nonforfeiture interest rate per annum for any policy issued in a particular  calendar  year  shall  be  equal  to  one  hundred  and twenty-five  percent  of  the calendar year statutory valuation interest rate for such policy as defined in section  four  thousand  two  hundred seventeen  of  this  article  rounded  to  the nearer one quarter of one percent, computed, with respect  to  a  single  premium  life  insurance policy  of  the  kind  referred  to  in item (vi) of subparagraph (B) of paragraph four of subsection (c) of such section, on  a  year  of  issue basis  by  using  a  reference  interest rate defined for such policy in subparagraph (F) of such paragraph for the  year  immediately  preceding the  year  of  issue on the assumption that the company has submitted an opinion and memorandum,  in  form  and  substance  satisfactory  to  the superintendent,  of  a  qualified  actuary  with  respect to such single premium  life  insurance  policies  in  accordance  with  item  (vi)  of subparagraph (B) of such paragraph.  (11)  Notwithstanding  any  other  provision  in  this  chapter to the contrary, any refiling of  nonforfeiture  values  or  their  methods  of computation  for any previously approved policy form which involves only a change in the  interest  rate  or  mortality  table  used  to  compute nonforfeiture  values shall not require refiling of any other provisions of that policy form.  (12) After May twenty-fourth, nineteen hundred eighty-two, any company may file with the superintendent a written notice  of  its  election  to comply,  with  respect  to any plan of insurance, with the provisions of this subsection after a specified date before  January  first,  nineteen hundred   eighty-nine,  which  shall  be  the  operative  date  of  this subsection for that plan of insurance for such  company;  the  operative dates  of  this subsection for other plans of insurance for such company shall be any dates not later than January first of the third  subsequent calendar  year,  but  in  no  event  later  than January first, nineteen hundred eighty-nine. If a company makes no such election with respect to any plan of insurance, the operative date of this  subsection  for  such company shall be January first, nineteen hundred eighty-nine.  (l)  In  the  case  of  any  plan of life insurance which provides for future premium determination, the amounts of which are to be  determined by  the  insurance company based on then estimates of future experience, or in the case of any plan of life insurance which is of such  a  nature that  minimum  values  cannot  be determined by the methods described in subsection (a), (c), (d), (g), (h), (i) or (k) of this section, then:  (1) the superintendent must be satisfied that  the  benefits  provided under  the  plan  are  substantially  as  favorable to policyholders and insureds as the minimum benefits otherwise required by  subsection  (a), (c), (d), (g), (h), (i) or (k) hereof;  (2)  the  superintendent  must  be satisfied that the benefits and the pattern of premiums of that plan are not such as to mislead  prospective policyholders or insureds;  (3)  the  cash  surrender  values  and  paid-up nonforfeiture benefits provided by such plan must not be  less  than  the  minimum  values  and benefits  required for the plan computed by a method consistent with the principles of this section, as determined by the superintendent.  (m) (1)  Any  cash  surrender  value  and  any  paid-up  nonforfeiture benefit,  available  under  any  such policy or contract in the event of  default in the payment of any premium or stipulated payment due  at  any time  other  than  on  the  policy  or  contract  anniversary,  shall be calculated with allowance for the lapse  of  time  and  the  payment  of fractional  premiums  or stipulated payments beyond the beginning of the policy or contract year in which the default occurs.  (2) All values referred to in subsections (c) through (k) hereof,  may be  calculated  upon the assumption that any death benefit is payable at the end of the policy or contract year of death.  (3) Notwithstanding the provisions of subsections (c) and (e)  hereof, additional  benefits  payable (i) in the event of death or dismemberment by accident, (ii) in the event of total and permanent disability,  (iii) as  reversionary annuity or deferred reversionary annuity benefits, (iv) as term insurance benefits provided by a rider  or  supplemental  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, endowment, and annuity benefits, and premiums for all such additional  benefits,  shall be  disregarded  in ascertaining cash surrender values and nonforfeiture benefits required by this section, and no such additional benefits shall be required to be included in any paid-up nonforfeiture benefits.  (n)  (1)  This  subsection,  in  addition  to  all  other   applicable provisions  of  this  section,  shall apply to all policies issued on or after January first, nineteen hundred eighty-six.  (2) Any cash surrender value available under the policy in  the  event of  default  in a premium payment due on any policy anniversary shall be in an amount which does not  differ  by  more  than  two-tenths  of  one percent  of  either the amount of insurance, if the insurance be uniform in amount, or the average amount of insurance at the beginning  of  each of  the  first ten policy years, from the sum of (i) the greater of zero and the basic cash value hereinafter  specified  and  (ii)  the  present value  of  any  existing  paid-up  additions  less  the  amount  of  any indebtedness to the company under the policy.  (3) The basic cash value shall be equal to the present value, on  such anniversary,  of  the  future  guaranteed benefits which would have been provided for by the policy, excluding any existing paid-up additions and before deduction of any indebtedness to the company, if there  had  been no default, less the then present value of the nonforfeiture factors, as hereinafter  defined,  corresponding to premiums which would have fallen due on and after such anniversary. Provided, however, that  the  effects on  the  basic  cash  value  of  supplemental  life insurance or annuity benefits or of family coverage, as described in subsection  (c)  or  (g) hereof,  whichever  is  applicable, shall be the same as are the effects specified in such subsection,  whichever  is  applicable,  on  the  cash surrender values defined in that subsection.  (4)  The  nonforfeiture factor for each policy year shall be an amount equal to a percentage of the adjusted premium for the  policy  year,  as defined in subsection (g) or (k) hereof, whichever is applicable. Except as  is  required by the next succeeding sentence of this paragraph, such percentage:  (A) must be the same percentage  for  each  policy  year  between  the second  policy  anniversary  and  the  later  of  (i)  the  fifth policy anniversary and (ii) the first policy  anniversary  at  which  there  is available  under  the policy a cash surrender value in an amount, before including any paid-up additions and before deducting  any  indebtedness,  of at least two-tenths of one percent of either the amount of insurance, if  the  insurance  be  uniform  in  amount,  or  the  average amount of insurance at the beginning of each of the first ten policy years; and  (B)  must be such that no percentage after the later of the two policy anniversaries specified in subparagraph (A) hereof may  apply  to  fewer than five consecutive policy years.   Provided,  that  no  basic cash value may be less than the value which would be obtained if the adjusted premiums for the policy, as defined in subsection (g) or (k) hereof, whichever is applicable, were  substituted for  the  nonforfeiture  factors  in  the  calculation of the basic cash value.  (5) All adjusted premiums and  present  values  referred  to  in  this subsection  shall  for  a  particular  policy  be calculated on the same mortality and interest bases as are used in demonstrating  the  policy's compliance with the other subsections of this section.  (6) (A) The cash surrender values referred to in this subsection shall include any endowment benefits provided for by the policy.  (B)  Any  cash  surrender  value  available other than in the event of default in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit available under the policy  in  the event  of  default  in  a premium payment shall be determined in manners consistent with the manners  specified  for  determining  the  analogous minimum amounts in subsections (a), (c), (d), (k) and (m) hereof.  (C)  The  amounts  of  any  cash  surrender  values and of any paid-up nonforfeiture benefits granted in connection  with  additional  benefits such  as  those  listed  as items (i) through (vi) in paragraph three of subsection  (m)  hereof  shall  conform  with  the  principles  of  this subsection.  (n-1)  (1)  Notwithstanding  any  other provision in this section, any policy that meets the requirements of this subsection shall be deemed to provide the minimum nonforfeiture benefits  and  cash  surrender  values required  by this section. Any policy which is issued by a company after the operative date of this subsection for the company  and  under  which additional amounts may be credited pursuant to subsection (b) of section four  thousand  two  hundred  thirty-two  of  this article must meet the requirements of this subsection.  (2) In this subsection,  (A) "Policy value" means an amount equal to gross premiums paid  under a  policy  (excluding  separately  identified  premiums  for  riders  or supplementary benefits that are not credited to the policy  value)  plus interest  credited  less  the  amount of any partial withdrawals and the following charges as specified in the policy: (i) expense charges,  (ii) benefits  charges,  (iii)  service  charges,  and (iv) partial surrender charges.  (B) "Benefit charges" means mortality charges made for life  insurance on  the  insured  person  or  persons and any charges made for riders or supplementary benefits.  (C) "Service charges" means  charges  for  the  cost  of  transactions requested  by  the  policyowner  such as partial withdrawals and benefit illustrations.  Transactional  charges  made  under   mandatory   policy provisions shall not be assessed unless specifically permitted by law or regulation for such transactions.  (D) "Expense  charges"  means  charges  (other  than  service charges) deducted from gross premiums before premiums are credited to the  policy value or otherwise deducted from the policy value.  (E) "Excess  first  year expense charges" means the greatest amount by which (x) can exceed (y) based, for stipulated premium policies, on  the premiums  set  forth  in  the  policy  and,  for  other policies, on the  assumption that any premium (other than a single premium) payable in the first policy year is also  payable  during  the  entire  premium  paying period, where  (x) is the amount of the expense charges made in the first policy year and  (y)  is  the arithmetic average of the corresponding charges which the policy states would be imposed in policy years two through twenty or the premium paying period, if shorter.  (F) "Excess expense charges for a  face  amount  increase"  means  the greatest  amount  by  which  (x)  can  exceed  (y) based, for stipulated premium policies, on the premiums set forth in the policy and, for other policies, on the assumption that the net level whole life annual premium for the increase applies throughout the remaining premium paying period, where  (x) is the amount of the expense charges attributable to  an  increase in  face  amount  of insurance in the first policy year of the increase, and  (y)  is  the  arithmetic  average   of   the   corresponding   charges attributable to the increase which the policy states would be imposed in the  nineteen  policy years following the increase or the premium paying period, if shorter.  (G) "Interest credited" means the amount of interest credited  to  the policy  value  but, with respect to policies meeting the requirements of subparagraph (A) of paragraph three of this subsection,  not  less  than three percent in any year.  (H) "Net  level  whole  life  annual premium at issue" means an annual premium based on face amounts of insurance set forth in the  policy  and on the assumption of level annual premiums for life, the mortality table rate  used  to  calculate the maximum mortality charges (but not greater than that permitted under item (iv) of  subparagraph  (A)  of  paragraph three  of  this  subsection) and an interest rate based on the higher of four percent or that specified in the policy.  (I) "Net level whole life annual premium for an increase in  the  face amount  of insurance" means an additional annual premium for an increase in the face amount of  insurance  determined  as  of  the  date  of  the increase in accordance with subparagraph (H) of this paragraph as though such increase were a separate policy.  (J) "Increase  in  face  amount of insurance" means an increase in the schedule of face amounts of insurance provided for  in  the  policy  and made  at the request of the policyholder and shall not include increases in face amount resulting from a change in the death  benefit  option  or changes in death benefit pursuant to policy terms that do not affect the face amount.  (K) "Surrender  charge"  means  a  deferred  charge made to the policy value in the event of  a  full  or  partial  surrender  of  the  policy, reduction  in the face amount of insurance or premium, or a default in a premium payment.  (L) "Cash surrender value" means an amount equal to the  policy  value less  any  surrender  charge,  before reduction for outstanding loans or other amounts due under the policy.  (M) "Deferred first year expense charge", at issue or for an  increase in  the  face  amount  of  insurance, means any portion of the allowable first year expense charge that is not deducted from premiums or  charged to  the  policy  value  in the year of issue, or in the policy year of a face amount increase, but deferred and charged to the  policy  value  in subsequent years.  (N) "Consumer  price ratio" means the ratio (not to exceed two) of (x) the consumer price index (for all urban households)  for  the  September  preceding the policy year in which the ratio is being applied to (y) the consumer price index for September, nineteen hundred eighty-five.  (3)  A  policy  that  meets  the  requirements of this subsection must provide for cash surrender values that meet the requirements  of  either subparagraph  (A)  or subparagraph (B) and comply with the provisions of subparagraphs (C) and (D) of this paragraph.  (A) Cash surrender values shall be deemed to meet the requirements  of this subparagraph, if the following conditions are met:  (i)  Expense  charges  for  any  policy  year  shall  not  exceed  the following:  (I) ninety percent of premiums received up to the net level whole life annual premium at issue (regardless of when received),  (II) ten percent of all other premiums received,  (III) ninety percent of any net level whole life  annual  premium  for increases   in   the  face  amount  of  insurance  (including  increases offsetting previous decreases),  (IV) ten dollars per one thousand dollars of initial  face  amount  in the first policy year,  (V)  one  dollar  per  one  thousand  dollars of the first one hundred thousand dollars of face amount in subsequent policy years,  (VI) ten dollars per one thousand dollars of any increase in the  face amount  of  insurance  in  the  year  of  increase  (including increases offsetting previous decreases),  (VII) a charge per policy in  the  first  policy  year  equal  to  the product of one hundred fifty dollars and the consumer price ratio, and  (VIII)  in policy years after the first, a charge per policy per month equal to the product of five dollars and the consumer price ratio.  (ii) Any surrender charge provided in the policy shall  be  such  that the  initial  surrender charge together with the expense charges made in the first policy year (and on premiums up to the net  level  whole  life annual  premium  if received after the first year) do not exceed the sum of the amounts determined in accordance with clauses (I) and  (II)  (for premiums  received in the first year) and clauses (IV) and (VII) of item (i) of this subparagraph. The surrender charge at any time shall not  be greater than the difference between the maximum initial surrender charge permitted  under  this  subparagraph  and  the  sum  of all the deferred expense charges made up to that time. Any additional  surrender  charges that  are  imposed  in connection with an increase in face amount of the policy shall be such that such  additional  charges  together  with  any expense  charges made in connection with such increase do not exceed the sum of the amounts determined in accordance with clauses (III) and  (VI) of item (i) of this subparagraph.  (iii)  Deferred first year expense charges shall be such that: (I) the charge for any one year shall not exceed the maximum allowable surrender charge for that year, and (II) the total of all such charges at any time plus the surrender charge at that time  shall  not  exceed  the  maximum initial surrender charge. Any deferred first year expense charge imposed with  respect  to  an  increase in the face amount of insurance shall be subject to comparable limitations.  (iv) A policy meeting the requirements of this subparagraph if  issued before  the  operative  date  of  subsection (k) of this section may not impose mortality charges in excess of those based on  the  commissioners 1958  standard  ordinary  mortality  table  in  the  case  of a standard medically underwritten insured or the commissioners 1958  extended  term insurance table in the case of any other standard insured, and if issued on  or  after  such  operative  date may not impose mortality charges in excess of those  based  on  the  commissioners  1980  standard  ordinary mortality table in the case of a standard medically underwritten insured  or  the  commissioners 1980 extended term insurance table in the case of any other standard insured.  At  the  option  of  the  company,  maximum charges  based  on  the  commissioners  1980 standard ordinary mortality table  may  be computed using ten-year select mortality factors. Maximum charges may also be based on any other table  (or  modification  thereof for the specified class of risk) approved by the superintendent pursuant to  item (vi) of subparagraph (B) of paragraph nine of subsection (k) of this section. For insurance issued on a substandard basis, such  charges may be based on appropriate modifications of such tables.  (B)  Cash surrender values shall be deemed to meet the requirements of this subparagraph, if the following conditions are met:  (i) Policy values shall not be less than a minimum policy value  which reflects  the same transactions, the same interest credited and the same benefit charges that are reflected in the actual  policy  value,  except that the excess first year expense charges shall not be greater than the initial  expense  allowance,  and  any excess expense charges for a face amount increase after issue shall  not  be  greater  than  the  increase expense  allowance.  For  purposes  of  this  item,  the initial expense allowance shall be (I)  the  lesser  of  (aa)  one  hundred  twenty-five percent  of  the  net  level whole life annual premium at issue and (bb) four percent of the average face amount of insurance provided under  the policy  during  the first ten policy years plus (II) one percent of such average face amount, and the increase expense allowance shall be (I) the lesser of (aa) one hundred twenty-five percent of the  net  level  whole life  annual premium for an increase in the face amount of insurance and (bb) four percent of the average increase in face  amount  of  insurance over  a  period  of ten policy years (excluding any increases previously taken into account in determining an expense allowance under this  item) plus (II) one percent of any such average increase.  (ii)  Any  surrender  charge provided in the policy shall be such that the initial surrender charge together with any excess first year expense charges do not exceed the  initial  expense  allowance.  Any  additional surrender  charges  that  are  imposed in connection with an increase in face amount shall be such that any such additional charge together  with any  excess expense charges made in connection with such increase do not exceed the increase expense allowance.  (iii) The policy shall provide that at least once each policy year the policyholder has the option to apply the portion of the  cash  surrender value  necessary  to  provide  an  amount  of  guaranteed  paid-up  life insurance at least as great as the lesser of (I) and (II), where (I)  is the  amount  of  paid-up  life  insurance  provided by applying the cash surrender value to provide such paid-up insurance, computed on the basis of an interest rate (not less  than  four  percent)  guaranteed  in  the policy  for  this  purpose, and a mortality basis (not less favorable to the policyholder than the mortality basis specified for an  insured  not medically  underwritten  in  item  (iv)  of  subparagraph  (A)  of  this paragraph) guaranteed in the policy for this purpose, and  (II)  is  the amount  of  paid-up  life  insurance such that the amount at risk on the paid-up insurance is the same as the amount at risk under the policy. If the option is elected, the portion  of  the  cash  surrender  value  not applied  to  provide  the  paid-up  life  insurance shall be paid to the policyholder. The guaranteed  paid-up  life  insurance  benefit  may  be provided  under the policy or by means of a separate single premium life insurance policy issued by the company or  an  affiliate  or  subsidiary thereof.  For  purposes of this item, the term "cash surrender value" is after reduction for outstanding loans or other  amounts  due  under  the policy.  (C)  The  surrender  charge  in policy years after the first shall not exceed  the  maximum  initial  surrender  charge  permitted  under  this subsection  multiplied  by  the ratio of (i) the value of a life annuity due of one dollar per year for the balance of the amortization period to (ii)  the  corresponding  annuity value at issue, based on the mortality table and interest rate used in calculating the  net  level  whole  life annual  premiums.  For  all  policies the maximum amortization period is twenty years.  (D) Any surrender charge that is imposed on  an  increase  in  premium payments under a policy meeting the requirements of this subsection that does  not  result in any increase in face amount of the policy shall not exceed the difference between (I) the maximum initial  surrender  charge computed on the assumption that premiums were paid at the increased rate from  the  date  of  issuance of the policy and (II) the maximum initial surrender charge permitted under this subsection.  (4)  The  superintendent  may  issue  regulations  to  implement  this subsection.  (5)  The  operative  date  of  this  subsection for a company shall be January first, nineteen hundred eighty-eight, or the operative  date  of this act for the company, whichever is earlier.  (n-2)  Notwithstanding any other provision of this section, any policy that provides for  the  crediting  of  additional  amounts  pursuant  to subsection  (b)  of section four thousand two hundred thirty-two of this article may provide for cash surrender benefits determined in accordance with a market-value adjustment formula,  provided,  however,  that  such policy   provides   for   cash  surrender  benefits  determined  without adjustment in accordance with such a formula at specified  times  (which shall  not  be less frequent than once every ten years after issuance of the policy). For  purposes  hereof,  "market-value  adjustment  formula" means  a  formula  which  is  described in the policy for increasing and decreasing cash surrender values that would otherwise meet  the  minimum requirements  of  subsection  (n-1) of this section and which takes into account (1) changes in interest rates on publicly-traded obligations  or other investments or in interest rates provided in, or declared pursuant to,  policies  of the same class as the policy being surrendered and (2) the length of time between the date on which the policy  is  surrendered and the next date on which the policy would have provided cash surrender benefits  determined  without  the  use  of  any market-value adjustment formula. The superintendent may  promulgate  reasonable  regulations  to define permissible forms or market-value adjustment formulae.  (o) (1) This section shall not apply to any of the following:  (A) Reinsurance.  (B) Group insurance.  (C) Group annuity contract.  (D) A single premium pure endowment or annuity contract.  (E) A reversionary annuity contract.  (F)  A  term  policy  of  uniform amount, which provides no guaranteed nonforfeiture or endowment benefits, or renewal thereof, of thirty years or less expiring before age eighty-one, for which uniform  premiums  are payable during the entire term of the policy.  (G)  A  term policy of decreasing amount, which provides no guaranteed nonforfeiture or endowment benefits, on  which  each  adjusted  premium, calculated  as specified in subsections (g), (h), (i) and (k) hereof, is less than the adjusted premium  so  calculated,  on  a  term  policy  of uniform  amount,  or  renewal  thereof,  which  provides  no  guaranteed nonforfeiture or endowment benefits, issued at the same age and for  the same initial amount of insurance, and for a term of twenty years or less  expiring  before age seventy-one, for which uniform premiums are payable during the entire term of the policy.  (H)  A policy, which provides no guaranteed nonforfeiture or endowment benefits, for which no cash surrender value, if any, or present value of any paid-up nonforfeiture benefit, at the beginning of any policy  year, calculated  as  specified in subsections (c), (d), (g), (h), (i) and (k) hereof, exceeds two and one-half percent of the amount of  insurance  at the beginning of the same policy year.  (I) A policy or contract delivered outside this state through an agent or  other  representative of the company issuing the policy or through a broker.  (2) For purposes of determining the applicability of this section, the age at expiry for a joint term life insurance policy shall be the age at expiry of the oldest life.  (p) (1) Any company 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 first, nineteen hundred forty-eight.  (2) After the filing of such notice, then  upon  such  specified  date (which shall be the operative date for such company), this section shall become  operative  with respect to the policies and contracts thereafter issued by such company.  If  a  company  makes  no  such  election,  the operative  date of this section for such company shall be January first, nineteen hundred forty-eight.  (q) The provisions of this section  shall  not  apply  to  any  policy qualified for special tax treatment under subsection (b) of section four hundred  three  of the Internal Revenue Code of 1986, as amended, to the extent such application would prevent such qualification.