1028                                LAWS OF MARYLAND                          [CH. 630

discontinues membership in the association, the insurance of his em-
ployees shall cease solely by reason of such discontinuance.

(d) The amounts of insurance under the policy must be based
upon some plan precluding individual selection either by the insured
persons or by the policyholder, employers, or unions.

(5) No group life insurance policy conforming to one of the de-
scriptions as contained in Paragraphs (1), (3) or (4) may be issued
which provides term insurance on any person which together with
any other term insurance under any group life insurance policy or
policies issued to the employer or employers of such person or to a
labor union or labor unions of which such person is a member or to
the trustees of a fund or funds established in whole or in part by such
employer or employers or such labor union or labor unions, exceeds
$20,000, unless 150% of the annual compensation of such person
from his employer or employers exceeds $20,000, in which event all
such term insurance shall not exceed $40,000, or 150% of such an-
nual compensation, whichever is the lesser.

185 1185B. Group—Life Insurance. Uniform Provisions. No pol-
icy of group insurance shall be delivered, or issued for delivery, in
this State unless it contains in substance the provisions as required
by subsections (1) to (10) inclusive and subsection (11) if applicable,
or provisions which in the opinion of the Commissioner are not less
favorable to the persons insured, or at least as favorable to the per-
sons insured and more favorable to the policyholder, provided, how-
ever, (a) that the provisions of subsections (6) to (10) inclusive of
this Section, shall not apply to policies issued to a creditor to insure
debtors of such creditor; (b) that the uniform provisions required
for individual life insurance policies shall not apply to group life in-
surance policies; and (c) that if the group life insurance policy is on
a plan of insurance other than the term plan, it shall contain a non-
forfeiture provision or provisions which in the opinion of the Com-
missioner is, or are, equitable to the insured persons and to the policy-
holder, but nothing herein shall be construed to require that group
life insurance policies contain the same non-forfeiture provisions as
are required for individual life insurance policies:

(1)  A provision that the policyholder is entitled to a grace period
of thirty-one days for the payment of any premium due except the
first, during which grace period the death benefit coverage shall con-
tinue in force, unless the policyholder shall have given the insurer
written notice of discontinuance in advance of the date of discontin-
uance and in accordance with the terms of the policy. The policy may
provide that the policyholder shall be liable to the insurer for the pay-
ment of a pro rata premium for the time the policy was in force
during such grace period.

(2)  A provision that the validity of the policy shall not be con-
tested, except for non-payment of premiums, after it has been in
force for two years from its date of issue, and that no statement
made by any person insured under the policy relating to his insur-
ability shall be used in contesting the validity of the insurance with
respect to which such statement was made after such insurance has
been in force prior to the contest for a period of two years during
such person's lifetime or unless it is contained in a written instru-
ment signed by him.

(3) A provision that a copy of the application, if any, of the policy-