§ 4232. Amounts credited on certain contracts or life insurance
policies. (a) (1) If any contract subject to section four thousand two
hundred twenty-three of this article, provides for additional amounts to
be credited to the contract during any period in accordance with the
provisions of paragraph one of subsection (g) of section four thousand
two hundred thirty-one of this article, then any additional amounts to
be so credited must be determined for each year during such period.
Except as otherwise provided in the contract in accordance with section
four thousand two hundred twenty-three of this article, the total amount
so credited shall be available to the contract holder upon surrender of
the contract for its cash surrender benefits.

(2) No such additional amounts shall be guaranteed or credited except
upon: (i) reasonable assumptions as to investment income, mortality, and
expenses; (ii) a basis equitable to all contract holders of a given
class; and (iii) written criteria approved by the board of directors of
the company or a committee thereof.

(3) Any such additional amounts credited under a group annuity
contract for which certificates are subject to section four thousand two
hundred twenty-three of this article shall be credited to such
certificates.

(b) (1) Any individual life insurance policy may provide that in
addition to any minimum benefits guaranteed in the policy, additional
amounts may be credited to the policy.

(2) No such additional amounts shall be guaranteed or credited except
upon reasonable assumptions as to investment income, mortality,
persistency, and expenses. The declaration of such additional amounts by
an insurer must be made prospectively; no such additional amounts shall
be credited retroactively to apply to any period prior to such
declaration.

(3) Such additional amounts are required to be credited to any policy,
providing for the crediting of additional amounts, while continued under
a reduced paid-up insurance option, with respect to the period after the
termination or lapse of such policy by reason of default in payment of
any premium, installment or interest on any policy loan and before the
reinstatement of such policy, if it is reinstated. However, an insurer
may use reasonable assumptions as to investment income, mortality,
persistency, and expenses which differ from the assumptions used for
policies in force on a premium paying basis.

(4) Any such additional amounts shall be credited on a basis equitable
to all policyholders of a given class and shall be based on written
criteria approved by the board of directors of the company or a
committee thereof.