82(1)The valuation of contracts of life insurance issued by insurers incorporated and licensed under the law of the Province, except contracts of fraternal societies licensed under this Act, shall be based on the British Officers’ Life Tables, 1893, OM (5), and on a rate of interest of three and one-half per cent per annum; but any such insurer may, with the approval of the Superintendent, adopt the American Men Ultimate Table of Mortality AM (5), with interest at three and one-half per cent per annum for the valuation of contracts issued on and after January first, 1929.

82(2)In computing such valuation a deduction may be allowed from the value of a policy in the first policy year of an amount ascertained in the following manner, namely: In the case of a twenty payment life policy or any other form of policy, except a term policy, the net annual premium upon which is less than the corresponding net annual premium of a twenty payment life policy, the difference between the net annual premium for such policy and the corresponding net premium for a one year term insurance, and in the case of a policy with a net annual premium greater than that of a twenty payment life policy an amount equal to the deduction allowed in respect of a twenty payment life policy.

82(3)After the first policy year the deduction allowed by subsection (2) shall be diminished each year by an amount not less than one-ninth of the deduction in the first policy year so that in the tenth year from the date of issue, the value of the policy shall be not less than that ascertained in accordance with subsection (1).

82(4)In case of policies subject to less than ten annual premiums the deduction ascertained as provided in subsection (2) shall, in each year after the first policy year, be reduced by an amount not less than the equal parts thereof required to provide that the value of the policy at the end of the premium paying period shall be not less than that ascertained in accordance with subsection (1).

82(5)No insurer shall issue any contract of life insurance that does not appear to be self-supporting upon reasonable assumption as to interest, mortality and expenses.

82(6)Where a contract of life insurance provides for accident or sickness insurance benefits, the Superintendent may prescribe the basis for valuing such benefits, but no deduction shall be allowed from the basis so fixed under the provisions of subsection (2) hereof, and in the valuation of the life insurance benefits under such contracts, the amount of the net annual premium upon which the deduction provided for in subsections (1) to (5) is to be based, shall be the net annual premium exclusive of the premium for such accident or sickness benefits.

82(7)In the case of annuity contracts, whether immediate or deferred, the valuation shall be the British Officers’ Select Life Annuity Table, 1893, male or female according to the sex of the nominee, with interest at three and one-half per cent per annum.

82(8)Notwithstanding subsection (1) or (7), an insurer may adopt

82(1)The valuation of contracts of life insurance issued by insurers incorporated and licensed under the law of the Province, except contracts of fraternal societies licensed under this Act, shall be based on the British Officers’ Life Tables, 1893, OM (5), and on a rate of interest of three and one-half per cent per annum; but any such insurer may, with the approval of the Superintendent, adopt the American Men Ultimate Table of Mortality AM (5), with interest at three and one-half per cent per annum for the valuation of contracts issued on and after January first, 1929.

82(2)In computing such valuation a deduction may be allowed from the value of a policy in the first policy year of an amount ascertained in the following manner, namely: In the case of a twenty payment life policy or any other form of policy, except a term policy, the net annual premium upon which is less than the corresponding net annual premium of a twenty payment life policy, the difference between the net annual premium for such policy and the corresponding net premium for a one year term insurance, and in the case of a policy with a net annual premium greater than that of a twenty payment life policy an amount equal to the deduction allowed in respect of a twenty payment life policy.

82(3)After the first policy year the deduction allowed by subsection (2) shall be diminished each year by an amount not less than one-ninth of the deduction in the first policy year so that in the tenth year from the date of issue, the value of the policy shall be not less than that ascertained in accordance with subsection (1).

82(4)In case of policies subject to less than ten annual premiums the deduction ascertained as provided in subsection (2) shall, in each year after the first policy year, be reduced by an amount not less than the equal parts thereof required to provide that the value of the policy at the end of the premium paying period shall be not less than that ascertained in accordance with subsection (1).

82(5)No insurer shall issue any contract of life insurance that does not appear to be self-supporting upon reasonable assumption as to interest, mortality and expenses.

82(6)Where a contract of life insurance provides for accident or sickness insurance benefits, the Superintendent may prescribe the basis for valuing such benefits, but no deduction shall be allowed from the basis so fixed under the provisions of subsection (2) hereof, and in the valuation of the life insurance benefits under such contracts, the amount of the net annual premium upon which the deduction provided for in subsections (1) to (5) is to be based, shall be the net annual premium exclusive of the premium for such accident or sickness benefits.

82(7)In the case of annuity contracts, whether immediate or deferred, the valuation shall be the British Officers’ Select Life Annuity Table, 1893, male or female according to the sex of the nominee, with interest at three and one-half per cent per annum.

82(8)Notwithstanding subsection (1) or (7), an insurer may adopt