All adjusted premiums and present values referred to in §§ 58-15-31 to 58-15-43, inclusive, are calculated for all policies of ordinary insurance on the basis of the commissioner’s 1980 standard ordinary mortality table or, at the election of the insurer, for any one or more specified plans of life insurance, the commissioner’s 1980 standard ordinary mortality table with ten-year select mortality factors are calculated for all policies of industrial insurance on the basis of the commissioner’s 1961 standard industrial mortality table; and are calculated for all policies issued in a particular calendar year on the basis of a rate of interest not exceeding the nonforfeiture interest rate as defined in this section for policies issued in that calendar year. However, the following procedures apply:

(1) At the option of the insurer, calculations for all policies issued in a particular calendar year may be made on the basis of a rate of interest not exceeding the nonforfeiture interest rate, as defined in this section, for policies issued in the immediately preceding calendar year;

(2) Under any paid-up nonforfeiture benefit, including any paid-up dividend additions, any cash surrender value available, whether or not required by § 58-15-31, shall be calculated on the basis of the mortality table and rate of interest used in determining the amount of the paid-up nonforfeiture benefit and paid-up dividend additions, if any;

(3) An insurer may calculate the amount of any guaranteed paid-up nonforfeiture benefit including any paid-up additions under the policy on the basis of an interest rate no lower than that specified in the policy for calculating cash surrender values;

(4) 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 commissioner’s 1980 extended term insurance table for policies of ordinary insurance and not more than the commissioner’s 1961 industrial extended term insurance table for policies of industrial insurance;

(5) For insurance issued on a substandard basis, the calculation of any adjusted premiums and present values may be based on appropriate modifications of the aforementioned tables;

(6) For policies issued prior to the operative date of the valuation manual, any commissioner’s standard ordinary mortality tables, adopted after 1980 by the national association of insurance commissioners, that are approved by rules promulgated by the director for use in determining the minimum nonforfeiture standard may be substituted for the commissioner’s 1980 standard ordinary mortality table with or without ten-year select mortality factors or for the commissioner’s 1980 extended term insurance table. For policies issued on or after the operative date of the valuation manual, the valuation manual shall provide the commissioner’s standard mortality table for use in determining the minimum nonforfeiture standard that may be substituted for the commissioner’s 1980 standard ordinary mortality table with or without ten-year select mortality factors or for the commissioner’s 1980 extended term insurance table. If the director approves by regulation any commissioner’s standard ordinary mortality table adopted by the national association of insurance commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual; and

(7) For policies issued prior to the operative date of the valuation manual, any commissioner’s standard industrial mortality tables, adopted after 1980 by the national association of insurance commissioners, that are approved by rules promulgated by the director for use in determining the minimum nonforfeiture standard may be substituted for the commissioner’s 1961 standard industrial mortality table or the commissioner’s 1961 industrial extended term insurance table. For policies issued on or after the operative date of the valuation manual the valuation manual shall provide the commissioner’s standard mortality table for use in determining the nonforfeiture standard that may be substituted for the commissioner’s 1961 standard industrial mortality table or the commissioner’s 1962 industrial extended term insurance table. If the director approves by regulation any commissioner’s standard industrial mortality table adopted by the national association of insurance commissioners for use in determining the minimum nonforfeiture standard for policies issued on or after the operative date of the valuation manual then that minimum nonforfeiture standard supersedes the minimum nonforfeiture standard provided by the valuation manual.

Source: SL 1982, ch 357, § 12; SL 1986, ch 22, § 29; SL 2015, ch 254, § 41.