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§4218
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§4218 . When actual premium is less than net premium; minimum reserve.
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§4218(a)
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(a)
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§4218(a)(1)
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(1) When the actual premium or consideration charged for life insurance under any life insurance policy, issued by any life insurance company doing business in this state, is less than the modified net premium calculated on the basis of the CRVM as defined in paragraph §4217(c)(6) of this article and using the rate of interest and mortality tables contained in the minimum valuation standards in paragraphs 2 and 4 such subsection , or in the case of future renewals under a renewable term insurance policy issued prior to the operative date of subsection §4221(k) of this article, the Modern CSO Mortality Table published in the Transactions of the Society of Actuaries, Vol. XXVII (1975), the minimum reserve required for such policy shall be the greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for such policy, or the reserve calculated by the CRVM as defined in paragraph §4217(c)(6) of this article and using the mortality table and rate of interest prescribed in (this §) for calculating the CRVM modified net premium and replacing such modified net premium by the actual premium charged for the policy in each contract year for which such modified net premium exceeds the actual premium.
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§4218(a)(2)
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(2) (this §) shall not authorize any such company to issue any policy or contract in violation of any other provision of this chapter.
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§4218(b)
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(b)
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§4218(b)(1)
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(1) In the case of any life insurance policy issued on or after January 1st, 1986, for which the actual premium in the 1st policy year exceeds that of the 2nd year and for which no comparable additional benefit is provided in the 1st year for such excess and which provides an endowment benefit or a cash surrender value or a combination thereof in an amount greater than such excess premium, the foregoing provisions of (sub§ (a)) hereof shall be applied as if the method actually used in calculating the reserve for such policy were the method described in paragraph §4217(c)(6) of this article, ignoring the proviso of such paragraph .
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§4218(b)(2)
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(2) The minimum reserve at each policy anniversary of such a policy shall be the greater of the minimum reserve calculated in accordance with paragraph §4217(c)(6) of this article, including the proviso of that paragraph , and the minimum reserve calculated in accordance with (this §) . Source Data downloaded: 2009-04-19 12: 33: 26; Processed: 2009-05-08 15: 36: 07
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