1. In the case of industrial policies issued on or after the operative date of this section, as provided in subsection 2, all adjusted premiums and present values referred to in NRS 688A.290 to 688A.360, inclusive, must be calculated on the basis of the Commissioners 1961 Standard Industrial Mortality Table and the rate of interest specified in the policy for calculating cash surrender values and paid-up nonforfeiture benefits, but that rate of interest must not exceed 3.5 percent per annum, or 4 percent per annum for policies issued on or after July 1, 1973, and before July 1, 1977, and a rate of interest not exceeding 5.5 percent per annum may be used for policies issued on or after July 1, 1977, other than single premium whole life or endowment insurance policies, and for the latter policies a rate of interest not exceeding 6.5 percent per annum may be used, except that:

(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 those shown in the Commissioners 1961 Industrial Extended Term Insurance Table.

(b) For insurance issued on a substandard basis or a special underwriting basis, the calculations of any such adjusted premiums and present values may be based on such other table of mortality as may be specified by the insurer and approved by the Commissioner.

2. After July 1, 1963, any insurer may file with the Commissioner a written notice of its election to comply with the provisions of this section after a specified date before January 1, 1968. After the filing of a notice, upon the specified date, this section is operative with respect to the industrial policies thereafter issued by the insurer. If an insurer makes no such election, the operative date of this section for the insurer is January 1, 1968.

3. This section does not apply to policies issued on or after the operative date of NRS 688A.325.

(Added to NRS by 1971, 1738; A 1973, 723; 1977, 691; 1983, 954; 1995, 1627)