CHAPTER 47
AN ACT TO AMEND CHAPTER 9, TITLE 18, DELAWARE CODE, RELATING TO VALUATION AND NON-FORFEITURE REQUIREMENTS OF LIFE INSURANCE POLICIES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. § 903 (b), Title 18, Delaware Code, is amended by striking out paragraph (1) and inserting in lieu thereof:
(1) For all ordinary policies of life insurance issued on the standard basis, excluding any disability and accidental death benefits in such policies,--the Commissioners' 1941 Standard Ordinary Mortality Table for such policies issued prior to the operative date of section 951 (d-1) of this Title, and the Commissioners' 1958 Standard Ordinary Mortality Table for such policies issued on or after such operative 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;
Section 2. § 951 (b), Title 18, Delaware Code, is amended by striking out the words "subsection (d)" in the eighth line of said subsection and inserting in lieu thereof the words "subsections (d) and (d-1)".
Section 3. § 951 (d), Title 18, Delaware Code, is amended by striking out the third paragraph and inserting in lieu thereof the following:
Except as otherwise provided in subsection (d-1), 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 three years younger than the actual age of the insured. Such calculations for 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 3-1/2% per annum, specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits. 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 130% of the rates of mortality according to such applicable table. 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.
Section 4. § 951, Title 18, Delaware Code, is amended by adding after subsection (d) a new subsection to read as follows:
(d-1) In the case of Ordinary policies issued on or after the operative date of this subsection (d-1) 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 3-1/2% per annum, specified in the policy for calculating cash surrender values and paid-up nonforfeiture 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 in calculating the present value of any paid-up term insurance with accompanying pure endowment, if any, offered as a non-forfeiture 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 commissioner.
After the enactment of this Act, 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 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 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 operate date of this subsection for such company shall be January first, nineteen hundred and sixty-six.
Section 5. § 951 (e), Title 18, Delaware Code, is amended by striking out the words "subsections (b), (c) and (d)" in the sixth line of said subsection and inserting in lieu thereof the words "subsections (b), (c), (d) and (d-1)".
Section 6. § 951 (f), Title 18, Delaware Code, is amended by striking out the word "subsection (d)" in the seventh line of said subsection and inserting in lieu thereof the words "subsections (d) and (d-1)".
Approved May 21, 1959.