Chap.  399.         AN ACT AUTHORIZING THE USE OF LATER MOR-
TALITY TABLES BY FRATERNAL BENEFIT SOCIETIES.
Be it enacted,  etc.,  as follows:
SECTION 1. Section 20 of chapter 176 of the General Laws, as amended by section 2 of chapter 321 of the acts of 1960, is hereby further amended by striking out the second paragraph and inserting in place thereof the following paragraph:-
In the  case of certificates other than those for which reserves are  computed on the Commissioners 1941 Standard Ordinary Mortality   Table,   the  Commissioners  1941  Standard Industrial Mortality  Table,  the Commissioners 1958 Standard Ordinary Mortality Table,  or such later tables as are authorized for use by domestic life   insurers   and  approved by  the commissioner,   the  value  of every paid-up nonforfeiture benefit and the amount of any cash surrender value,  loan or other option granted shall not be less than the excess,  if any,  of (a) over (b) as follows:
(a)     The reserve under the certificate determined on the basis specified in the certificate; and
(b)     The sum of any indebtedness to the society on the certificate,   including  interest due and accrued,  and a surrender charge equal to two and one-half per cent of the face amount of the certificate,  which,  in the case of insurance on the lives of children,   shall be the ultimate face amount of the certificate, if death benefits provided therein are graded.
SECTION 2.    Said   section 20   of  said   chapter 176 is  hereby further amended by striking out the fourth paragraph and inserting in place thereof the following paragraph :-
In  the  case of certificates for which reserves are computed on the  Commissioners  1941  Standard  Ordinary Mortality Table,  the Commissioners 1941 Standard Industrial Mortality Table, the Commissioners  1958 Standard Ordinary Mortality Table, or such later tables as are authorized for use by domestic life insurers and approved by the commissioner, every paid-up nonforfeiture benefit and the amount of any cash surrender value, loan or other option  granted  shall not be less than the corresponding amount ascertained in accordance with the provisions of the laws of the commonwealth applicable to life insurance companies issuing policies containing like insurance benefits based upon such tables.
SECTION 3.    Subsection (6) of section 41  of said chapter 176, as amended by  section 4  of  chapter 321 of the acts of 1960, is hereby further amended by striking out the third paragraph and inserting in place thereof the following paragraph :-
The minimum standard of valuation for certificates issued on or after said January first shall be three and one-half per cent interest and the following tables, or such interest assumptions and
tables as are authorized for use by domestic life insurers and approved by the commissioner:-
(a)    For  certificates  of life insurance-American Men Ultimate Tables of Mortality, with Bowerman's or Davis' Extension thereof or with the consent of the commissioner, the Commissioners 1941 Standard Ordinary Mortality Table, the Commissioners 1941 Standard Industrial Mortality Table or the Commissioners 1958 Standard Ordinary Mortality Table,  using actual age of the insured for male risks and an age not more than three years younger than the actual age of the insured for female risks;
(b)    For annuity certificates, including life annuities provided or available under optional modes of settlement in such certifi-cates-the 1937 Standard Annuity Table;
(c)    For disability benefits issued in connection with life benefit certificates-Hunter's Disability Table, which, for active lives, shall be combined with a mortality table permitted for calculating the reserves on life insurance certificates, except that the table known as Class III Disablity Table (1926) modified to conform to the contractual waiting period,   shall be used in computing reserves for disability benefits under a contract which presumes that total disability shall be considered to be permanent after a specified period;
(d)    For accidental  death benefits issued in connection with life benefit certificates-the Inter-Company Double Indemnity Mortality Table combined with a mortality table permitted for calculating the reserves for life insurance certificates; and
(e)    For   non-cancellable   accident   and   health   benefits-the Class III Disability Table (1926) with conference modifications or, with the consent of the commissioner, tables based upon the society's own experience.
Approved    July   20,    1979.