§ 4218. When actual premium is less than net premium; minimum reserve.
(a) (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 commissioners reserve valuation
method as defined in paragraph six of subsection (c) of section four
thousand two hundred seventeen of this article and using the rate of
interest and mortality tables contained in the minimum valuation
standards in paragraphs two and four of such subsection, or in the case
of future renewals under a renewable term insurance policy issued prior
to the operative date of subsection (k) of section four thousand two
hundred twenty-one 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 commissioners reserve valuation method as
defined in paragraph six of subsection (c) of section four thousand two
hundred seventeen of this article and using the mortality table and rate
of interest prescribed in this section for calculating the commissioners
reserve valuation method 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.

(2) This section shall not authorize any such company to issue any
policy or contract in violation of any other provision of this chapter.

(b) (1) In the case of any life insurance policy issued on or after
January first, nineteen hundred eighty-six, for which the actual premium
in the first policy year exceeds that of the second year and for which
no comparable additional benefit is provided in the first 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 subsection (a) hereof shall be applied as if
the method actually used in calculating the reserve for such policy were
the method described in paragraph six of subsection (c) of section four
thousand two hundred seventeen of this article, ignoring the proviso of
such paragraph.

(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 six of subsection (c) of section four thousand two
hundred seventeen of this article, including the proviso of that
paragraph, and the minimum reserve calculated in accordance with this
section.