§ 4515. Conditions for avoiding separate funds. (a) Any authorized\nsociety which maintains reserves, including deficient premium reserves,\nat least equal to those required by the minimum standards of valuation\nhereinafter specified and which does not exceed the expense limits\nhereinafter specified shall not be required, if its constitution or\nby-laws so permit, to create or maintain a separate fund or funds, for\nthe payment of insurance benefits as required by subsection (a) of\nsection four thousand five hundred fourteen of this article nor to\ncomply with the provisions of subsections (b) and (d) of such section\nand subsection (d) of section four thousand five hundred seven of this\narticle.\n (b) (1) Such minimum standards of valuation shall be:\n (A) as to all contracts for life insurance benefits issued prior to\nJanuary first, nineteen hundred forty-eight, the American Experience\nTable of Mortality or the American Men Ultimate Table of Mortality with\ninterest at three and one-half per centum,\n (B) as to all contracts for life insurance benefits issued on and\nafter January first, nineteen hundred forty-eight, and prior to January\nfirst, nineteen hundred fifty-six, the American Experience Table of\nMortality or the American Men Ultimate Table of Mortality with interest\nat three per centum, and\n (C) as to all contracts for life insurance benefits issued on and\nafter January first, nineteen hundred fifty-six, the applicable\nmortality tables as specified in subsection (c) of section four thousand\nfive hundred seventeen of this article.\n (2) The deficient premium reserve as to all such contracts issued\nprior to January first, nineteen hundred forty-eight, shall be\ndetermined in the manner prescribed in subsection (b) of section four\nthousand five hundred seventeen of this article and as to all such\ncontracts issued on and after January first, nineteen hundred\nforty-eight, shall be determined in the manner prescribed in section\nfour thousand two hundred eighteen of this chapter.\n (3) Such minimum standard of valuation as to all contracts for annuity\nbenefits issued on and after January first, nineteen hundred\nforty-eight, shall be the 1937 Standard Annuity Mortality Table with\ninterest at three per centum.\n (c) No such society shall, except as provided for in subsection (f)\nhereof, make or incur in any calendar year, or permit to be made or\nincurred on its behalf or under any agreement with it, total life\ninsurance expenses as defined in subsection (d) hereof in excess of the\ntotal life insurance expense limit as defined in subsection (e) hereof.\n (d) The total life insurance expenses of any such society within the\nmeaning of this section, shall include all expenses, made or incurred on\nits behalf with its permission or under any agreement with it, in the\nbusiness of fraternal life insurance, except:\n (1) taxes, licenses and fees,\n (2) disbursements for altruistic, educational, fraternal or\nrecreational activities which are made from funds collected solely for\nsuch purposes and in addition thereto disbursements for like purposes in\nan amount not exceeding one and one-half per centum of the premiums\nreceived for life insurance contracts during such calendar year,\n (3) that portion of its total investment expenses not exceeding\none-fourth of one per centum of the mean amount of its total invested\nassets during such calendar year,\n (4) taxes and other outlays exclusively in connection with real estate\nand commissions, or salaries and expenses in lieu of commissions, on\nmortgage loans, and\n (5) outlays representing the accrued liability for services rendered\nby the society's employees prior to coverage under employees pension\nplans.\n (e) The total life insurance expense limit, within the meaning of this\nsection, shall be the sum of the following items:\n (1) seven per centum of all life insurance premiums received by such\nsociety during such calendar year,\n (2
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