HARRY HUGHES, Governor
3353
insurance policies and annuities; excluding certain
policies from the Standard Nonforfeiture Law for Life
Insurance; and generally relating to standard valuation
and nonforfeiture law for life insurance and annuities.
BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 83 and 414
Annotated Code of Maryland
(1979 Replacement Volume and 1981 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:
Article 48A - Insurance Code
83.
(1) The Commissioner shall annually value, or cause to
be valued, the reserve liabilities (hereinafter called
reserves or net value) for all outstanding life insurance
policies and annuity and pure endowment contracts of every
life insurer doing business in this State except that in the
case of an alien insurer, such valuation shall be limited to
its United States business, and may certify the amount of
any such reserves, specifying the mortality table or tables,
rate or rates of interest and methods (net level premium
method or other) used in the calculation of such reserves.
In calculating such reserves, he may use group methods and
approximate averages for fractions of a year or otherwise.
In lieu of the valuation of the reserves herein required of
any foreign or alien insurer, he may accept any valuation
made, or caused to be made, by the insurance supervisory
official of any state or other jurisdiction when such
valuation complied with the minimum standard herein provided
and if the official of such State or jurisdiction accepts as
sufficient and valid for all legal purposes the certificate
of valuation of the Commissioner when such certificate
states the valuation to have been made in a specified manner
according to which the aggregate reserves would be at least
as large as if they had been computed in the manner
prescribed by the law of that state or jurisdiction.
Any such insurer which at any time shall have adopted
any standard of valuation producing greater aggregate
reserves than those calculated according to the minimum
standard herein provided may, with the approval of the
Commissioner, adopt any lower standard of valuation, but not
lower than the minimum herein provided.
(2) This subsection shall apply only to those policies
and contracts issued prior to the operative date of § 414
(the Standard Nonforfeiture Law).
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