Section 10486.9 Of Article 3. Valuation Of Life Policies From California Insurance Code >> Division 2. >> Part 2. >> Chapter 5. >> Article 3.

. (a) As prescribed in subdivision (b), an insurer may maintain reserves on a one year preliminary term basis on a life, term or endowment policy if by its terms such policy expressly provides that the first year's insurance under such policy is term insurance purchased by part or the whole of the premium to be received during the first year.
  (b) If the actuarial net preliminary term renewal premium in the case of
  (1) insurance under a limited-payment life preliminary term policy providing for the payment of all premiums thereon within less than 20 years from the date thereof; or
  (2) endowment insurance under an endowment preliminary term policy,