58-15-35. Adjustment of premiums under nonforfeiture provisions. Except as provided in § 58-15-37, the adjusted premiums for any policy shall be calculated on an annual basis and shall be such uniform percentage of the respective premiums specified in the policy for each policy year, excluding any extra premiums charged because of impairments or special hazards, that the present value, at the date of issue of the policy, of all such adjusted premiums shall be equal to the sum of:

(1) The then present value of the future guaranteed benefits provided for by the policy;

(2) Two percent of the amount of the insurance, if the insurance be uniform in amount, or of the equivalent uniform amount, as defined in § 58-15-36, if the amount of insurance varies with duration of the policy;

(3) Forty percent of the adjusted premium for the first policy year;

(4) Twenty-five percent of either the adjusted premium for the first policy year or the adjusted premium for a whole life policy of the same uniform or equivalent uniform amount with uniform premiums for the whole of life issued at the same age for the same amount of insurance, whichever is less.

However, in applying the percentages specified in subdivisions (3) and (4) above, no adjusted premium shall be deemed to exceed four percent of the amount of insurance or uniform amount equivalent thereto. The date of issue of a policy for the purpose of §§ 58-15-35 to 58-15-38, inclusive, shall be the date as of which the rated age of the insured is determined. This section and §§ 58-15-36 to 58-15-38, inclusive, may not apply to policies issued on or after the operative date of §§ 58-15-43.1 to 58-15-43.11, inclusive.

Source: SL 1966, ch 111, ch 23, § 28 (5); SL 1982, ch 357, § 3.