CHAPTER 347
AN ACT TO AMEND CHAPTER 9, TITLE 18, DELAWARE CODE, RELATING TO VALUATION AND NON-FORFEITURE REQUIREMENTS OF INDUSTRIAL LIFE INSURANCE POLICIES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. § 951, Title 18, Delaware Code, is amended by adding after subsection (d-1) a new subsection to read as follows:
(d-2) In the case of Industrial policies issued on or after the operative date of this subsection (d-2) 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 three and one-half per cent (31/2%) per annum, specified in the policy for calculating cash surrender values 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 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 commissioner.
After the enactment of this subsection, any company may file with the commissioner a written notice of its election to comply with the provisions of this subsection 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 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 1, 1968.
Section 2. § 903 (b), Title 18, Delaware Code, is amended by striking out all of sub-paragraph (2) and inserting in lieu thereof a new sub-paragraph (2) to read:
(2) 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 Section 951 (d-2) of this Title, and the Commissioners 1961 Standard Industrial Mortality Table for such policies issued on or after such operative date.
Section 3. § 951 (b), Title 18, Delaware Code, is amended by striking out the words "subsections (d) and (d-1)" in the eighth line of said subsection and inserting in lieu thereof the words "subsections (d), (d-1) and (d-2)".
Section 4. § 951 (d), Title 18, Delaware Code, is amended by striking out the first and second sentences of the last paragraph therein and substituting in lieu thereof the following:
Except as otherwise provided in subsections (d-1) and (d-2) of this section, all adjusted premiums and present values referred to in this section shall for all policies of Ordinary insurance be calculated on the basis of 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 3 years younger than the actual age of the insured, and such calculations for all policies of Industrial insurance shall be made on the basis of the 1941 Standard Industrial Mortality Table.
Section 5. § 951 (e), Title 18, Delaware Code, is amended by striking out the words "subsections (b), (c), (d) and (d-1)" in the sixth line of said subsection and inserting in lieu thereof the words "subsections (b), (c), (d), (d-1) and (d-2)".
Section 6. § 951 (f), Title 18, Delaware Code, is amended by striking out the words "subsections (d) and (d-1)" in the seventh line of said subsection and inserting in lieu thereof the words "subsections (d), (d-1) and (d-2)".
Approved July 7, 1964.