An actuaryinvesting the financial condition of an insurer shall, in addition tothe reports, statements and abstracts, required to be furnished underSec. 13 or Cl. (c) of subsection (2) of Sec. 16 of the Act, furnishstatement with regard to the following matters:
(a) whether he has taken steps to prevent the policy reservevalues from being less than the minimum surrender values;
(b) the proportion of renewal premium income spent in payment ofcommission and other expenses in each year during the period sincethe last investigation after allowing, as the cost of the newbusiness of the year, seven and a half per cent of single premiumsincluding consideration for annuities granted and seven and a halfper cent for each year of the maximum premiums-paying period, but notexceeding ninety per cent in all, of first year's premium falling duein the year after deduction of those unpaid under policies allowed tolapse in the year:
Provided that in respect of any year or accounting period endingon a date earlier than the 31st day of December, 1946, the allowanceout of first year's premiums as the cost of the new business shall beninety per cent irrespective of the premium-paying period.
Explanation 1.- Where the maximum premiums-paying period includesa fraction of a year, such fraction shall be ignored.
Explanation 2.- In the case of a whole life policy with premiumpayable throughout the duration of the policy the maximumpremiums-paying period shall be assumed to be twelve years.
25-A. Conditions to be complied.- The conditions with which aMutual Insurance company shall comply for the purposes of sub-section(2) of Sec, 4 are that such company shall confine its activities tomembers of any one profession only or to employees under one employeronly and that if any question arises whether or not a particulargroup of persons belongs to any one profession or is employed underany one employer, the Controller of Insurance shall decide thequestion and his decision shall be final.