NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 791

SENATE BILL 332

 

 

AN ACT TO AMEND CHAPTER 58, ARTICLE 22 OF THE GENERAL STATUTES RELATING TO RESERVE VALUATION AND NONFORFEITURE BENEFITS OF LIFE INSURANCE POLICIES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Paragraph (c) of G.S. 58-201.1, as the same appears in the 1961 Supplement to 1960 Replacement Volume 2B, is amended by inserting preceding the period at the end of subparagraph (2) thereof, the following:

"for such policies issued prior to the operative date of subdivision (e)(3) of § 58-201.2, and the Commissioners 1961 Standard Industrial Mortality Table for such policies issued on or after such operative date."

Sec. 2.  Paragraph (c) of G.S. 58-201.1 is further amended by striking out the word "determination" in the fourth line of subparagraph (5) and substituting therefor the word "termination".

Sec. 3.  Paragraph (e) of G.S. 58-201.2, as the same appears in the 1961 Supplement to the 1960 Replacement Volume 2B, is amended by striking out the words "subdivision (2)" in the first line of the last paragraph of subdivision (1) and substituting therefor the words "subdivisions (2) and (3)"; and by striking out the period at the end of the first sentence of said last paragraph and the word "such" at the beginning of the second sentence, and substituting therefor the words ", and such".

Sec. 4.  Paragraph (e) of G.S. 58-201.2 is further amended by inserting at the end thereof the following new subdivision:

"(3)      In the case of industrial policies issued on or after the operative date of this subdivision (3) 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 (3 ˝ %) 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 effective date of this Act, any company may file with the Commissioner a written notice of its election to comply with the provisions of this subdivision (3) after a specified date before January 1st, 1968. After the filing of such notice, then upon such specified date (which shall be the operative date of this subdivision (3) for such company), this subdivision (3) 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 subdivision (3) for such company shall be January 1, 1968.

Sec. 5.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 6.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 11th day of June, 1963.