§ 4217. Valuation of insurance policies and contracts. (a) (1) The\nsuperintendent shall annually value, or cause to be valued, the reserve\nliabilities (hereinafter called reserves) for all outstanding insurance\npolicies and contracts of every life insurance company doing business in\nthis state, except that, in the case of an alien company, such valuation\nshall be limited to its United States business, and may certify the\namount of any such reserves, specifying the mortality table or tables,\nrate or rates of interest and methods (net level premium method or\nother) used in the calculation of such reserves. In calculating such\nreserves, the superintendent may use group methods and approximate\naverages for fractions of a year or otherwise.\n (2) In lieu of the valuation of the reserves herein required of any\nforeign or alien company, the superintendent may accept any valuation\nmade, or caused to be made, by the insurance supervisory official of any\nstate or other jurisdiction when such valuation complies with the\nminimum standard herein provided and if the official of such state or\njurisdiction accepts as sufficient and valid for all legal purposes the\ncertificate of valuation of the superintendent when such certificate\nstates the valuation to have been made in a specified manner according\nto which the aggregate reserves would be at least as large as if they\nhad been computed in the manner prescribed by the law of that state or\njurisdiction.\n (3) (A) The superintendent may, in his discretion, vary the standards\nof mortality applicable to policies of insurance on substandard lives\nand other extra-hazardous lives issued by any life insurance company\ndoing business in this state.\n (B) He may also, in his discretion, vary the standards of interest and\nmortality applicable to contracts issued by an alien insurer in\ncountries other than the United States, if such alien insurer maintains\nthe trusteed surplus prescribed by section one thousand three hundred\ntwelve of this chapter.\n (4) (A) Any life insurance company doing business in this state which\nhas adopted as a basis for the valuation of its insurance policies and\ncontracts standards producing greater reserves in the aggregate than the\nminimum standards herein prescribed may continue to use such higher\nstandards as a basis of valuation.\n (B) After January first, nineteen hundred forty, any life insurance\ncompany doing business in this state may, subject to the provisions of\nparagraph eight of subsection (c) of this section, adopt as the basis\nfor the valuation of its insurance policies and contracts standards\nproducing greater reserves in the aggregate than the minimum standards\nherein prescribed; and any such company which shall have at any time\nadopted such higher standards of valuation may, with the approval of the\nsuperintendent, adopt lower standards of valuation, but in no case lower\nthan the minimum standards herein prescribed, provided, however, that,\nfor the purposes of this paragraph, the holding of additional reserves\ndetermined by a qualified actuary to be necessary to render the opinion\nrequired by subsection (e) of this section shall not be deemed to be the\nadoption of a higher standard of valuation.\n (C) The superintendent may approve any such change if he finds that\nthe proposed standards are for the best interests of the holders of the\npolicies and contracts and annuitants of such company.\n (D) Nothing contained herein shall be deemed to affect the contractual\nrights or obligations of the holder of any such policy or contract.\n (b) (1) This subsection shall apply only to those policies and\ncontracts issued prior to the operative date of section four thousand\ntwo hundred twenty-one of this article.\n (2) Except as provided in paragraph six hereof the legal minimum\nstandards for the valuation of life insurance contracts shall be as\nfollows:\n (A) For the valuation of all such contracts issued before th
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