AI-assisted research summary: This section sets how certain insurance premiums and present values are calculated for ordinary and industrial policies, with limits on interest rates and special rules for some policies.
I. This paragraph shall not apply to ordinary policies issued on or after the operative date of RSA 409:5-b as defined in that section. In the case of ordinary policies issued on or after the operative date of this paragraph as defined in this paragraph, all adjusted premiums and present values referred to in this chapter shall be calculated on the basis of the Commissioner's 1958 Standard Ordinary Mortality Table and 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 31/2 percent per annum, except that a rate of interest not exceeding 4 percent per annum may be used for policies issued on or after September 1, 1973, and prior to August 1, 1979, and a rate of interest not exceeding 51/2 percent per annum may be used for policies issued on or after August 1, 1979, and 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 6 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 not be more than those shown in the Commissioner's 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 commissioner. After August 21, 1959, any company may file with the insurance commissioner a written notice of its election to comply with the provisions of this paragraph after a specified date before January 1, 1966. 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 with respect to the ordinary policies issued after such specified date by such company. If a company makes no such election, the operative date of this paragraph for such company shall be January 1, 1966. II. This paragraph shall not apply to industrial policies issued on or after the operative date of RSA 409:5-b as defined in that section. In the case of industrial policies issued on or after the operative date of this paragraph as defined in this paragraph, all adjusted premiums and present values referred to in this chapter shall be calculated on the basis of the Commissioner's 1961 Standard Industrial Mortality Table and 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 31/2 percent per annum, except that a rate of interest not exceeding 4 percent per annum may be used for policies issued on or after September 1, 1973, and prior to August 1, 1979, and a rate of interest not exceeding 51/2 percent per annum may be used for policies issued on or after August 1, 1979. 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 less than those shown in the Commissioner's 1961 Industrial Extended Term Insurance Table. Provided, further, that for insurance issued on a substandard basis, the calculations 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. After August 21, 1959, any company may file with the insurance commissioner a written notice of its election to comply with the provisions of this paragraph after a specified date before January 1, 1968. 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 with respect to the industrial policies thereafter issued by such company. If a company makes no such election, the operative date of this paragraph for such company shall be January 1, 1968. Source: Source. 1959, 161:3. 1963, 34:2. 1973, 221:1. 1979, 360:3. 1981, 182:12, eff. Aug. 1, 1981.