Section 4218. When actual premium is less than net premium; minimum reserve

(a)  (1)  When  the  actual  premium  or  consideration charged for life
  insurance under any life insurance policy, issued by any life  insurance
  company  doing  business  in  this  state, is less than the modified net
  premium calculated on the basis of the commissioners  reserve  valuation
  method  as  defined  in  paragraph six of subsection (c) of section four
  thousand two hundred seventeen of this article and  using  the  rate  of
  interest  and  mortality  tables  contained  in  the  minimum  valuation
  standards in paragraphs two and four of such subsection, or in the  case
  of  future renewals under a renewable term insurance policy issued prior
  to the operative date of subsection (k) of  section  four  thousand  two
  hundred  twenty-one  of  this  article,  the  Modern CSO Mortality Table
  published in the Transactions of the Society of  Actuaries,  Vol.  XXVII
  (1975),  the  minimum  reserve  required  for  such  policy shall be the
  greater of either the reserve  calculated  according  to  the  mortality
  table,  rate  of  interest, and method actually used for such policy, or
  the reserve calculated by the commissioners reserve valuation method  as
  defined  in paragraph six of subsection (c) of section four thousand two
  hundred seventeen of this article and using the mortality table and rate
  of interest prescribed in this section for calculating the commissioners
  reserve  valuation  method  modified  net  premium  and  replacing  such
  modified  net  premium  by  the actual premium charged for the policy in
  each contract year for which  such  modified  net  premium  exceeds  the
  actual premium.
    (2)  This  section  shall  not authorize any such company to issue any
  policy or contract in violation of any other provision of this chapter.
    (b) (1) In the case of any life insurance policy issued  on  or  after
  January first, nineteen hundred eighty-six, for which the actual premium
  in  the  first policy year exceeds that of the second year and for which
  no comparable additional benefit is provided in the first year for  such
  excess and which provides an endowment benefit or a cash surrender value
  or  a combination thereof in an amount greater than such excess premium,
  the foregoing provisions of subsection (a) hereof shall be applied as if
  the method actually used in calculating the reserve for such policy were
  the method described in paragraph six of subsection (c) of section  four
  thousand  two hundred seventeen of this article, ignoring the proviso of
  such paragraph.
    (2) The minimum reserve at each policy anniversary of  such  a  policy
  shall  be  the  greater  of the minimum reserve calculated in accordance
  with paragraph six of  subsection  (c)  of  section  four  thousand  two
  hundred  seventeen  of  this  article,  including  the  proviso  of that
  paragraph, and the minimum reserve calculated in  accordance  with  this
  section.