Oregon Code § 743.216·Enacted ·Last updated March 01, 2026
Statute Text
Adjusted premiums; applicability.
This section applies only to life insurance policies issued before the
operative date defined in ORS 743.215. For such policies:
(1) Except as
provided in subsection (3) of this section, the adjusted premiums referred to
in ORS 743.210 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:
(a) The present
value at the policy issue date of the future guaranteed benefits provided for
by the policy.
(b) Two percent
of the amount of insurance if the insurance is uniform in amount, or of the
equivalent uniform amount as defined in subsection (2) of this section if the
amount of insurance varies with duration of the policy.
(c) Forty percent
of the adjusted premium for the first policy year. For this purpose, any excess
of the adjusted premium over four percent of the amount of insurance or
equivalent uniform amount shall be disregarded.
(d) Twenty-five
percent of either the adjusted premium for the first policy year or the
adjusted premium for a whole life policy for the same uniform or the same
equivalent uniform amount of insurance with uniform premiums for the whole of
life issued at the same age, whichever is less. For this purpose, any excess of
the adjusted premium over four percent of the amount of insurance or equivalent
uniform amount shall be disregarded.
(2) In the case
of a policy providing an amount of insurance varying with duration of the
policy, the equivalent uniform amount of the subject policy for the purpose of
this section shall be the uniform amount of insurance provided by an otherwise
similar policy, containing the same endowment benefit or benefits, if any,
issued at the same age and for the same term, the amount of which does not vary
with duration and the benefits under which have the same present value at the
date of issue as the benefits under the subject policy. However, in the case of
a policy providing a varying amount of insurance issued on the life of a child
under age 10, the equivalent uniform amount may be computed as though the
amount of insurance provided by the subject policy prior to the attainment of
age 10 were the amount provided by the subject policy at age 10.
(3) The adjusted
premiums for any policy providing term insurance benefits by rider or
supplemental policy provision shall be calculated in accordance with this
subsection. The amounts specified in paragraphs (a) and (b) of this subsection
shall be calculated separately. Each such amount shall be calculated as
specified in subsections (1) and (2) of this section. However, for the purposes
of subsection (1)(b), (c) and (d) of this section, the amount of insurance or
equivalent uniform amount of insurance used in the calculation of the adjusted
premiums referred to in paragraph (b) of this subsection shall be equal to the
excess of the uniform or equivalent uniform amount determined for the entire
policy over the amount used in the calculation of the adjusted premiums in
paragraph (a) of this subsection. The adjusted premiums for the entire policy
shall equal the sum of:
(a) The adjusted
premiums for an otherwise similar policy issued at the same age without such
term insurance benefits; and
(b) During the
period for which premiums for such term insurance benefits are payable, the
adjusted premiums for such term insurance benefits.
(4) Except as
provided in paragraphs (a) and (b) of this subsection and subsection (5) of
this section, all adjusted premiums and present values referred to in the
Standard Nonforfeiture Law for Life Insurance shall for all policies of
ordinary life insurance to which this section applies be calculated on the
basis of the Commissioners 1941 Standard Ordinary Mortality Table. Such
calculations for any category of ordinary life insurance issued on female lives
may, however, be based on an age not more than six years younger than the
actual age of the insured. Except as provided in paragraphs (a) and (b) of this
subsection and subsection (7) of this section, such calculations of adjusted
premiums and present values for all policies of industrial life insurance shall
be made on the basis of the 1941 Standard Industrial Mortality Table. All
calculations shall be made on the basis of the rate of interest, not exceeding
three and one-half percent per annum, specified in the policy for calculating
cash surrender values and paid-up nonforfeiture benefits. The following
exceptions pertain:
(a) In
calculating the present value of any paid-up term insurance with accompanying
pure endowment, if any, offered as a nonforfeiture benefit, the rates of
mortality assumed may be not more than 130 percent of the rates o