Ch. 515

1997 LAWS OF MARYLAND

health insurance and annuity life and health insurance and annuity contracts.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 27-209 and 27-212(b)
Annotated Code of Maryland
(1995 Volume and 1996 Supplement)

(As enacted by Chapter ___ (H.B. 11) of the Acts of the General Assembly of 1997)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article — Insurance

27-209.

Except as otherwise expressly provided by law, a person may not knowingly:

(1) allow, make, or offer to make a contract of life insurance or health
insurance or an annuity contract or an agreement as to the contract other than as plainly
expressed in the contract;

(2) pay, allow, give, or offer to pay, allow, or give directly or indirectly as an
inducement to the insurance or annuity:

(i) a rebate of premiums payable on the contract;

(ii) a special favor or advantage in the dividends or other benefits
under the contract;

(iii) paid employment or a contract for services of any kind; or

(iv) any valuable consideration or other inducement not specified in

the contract;

(3) directly or indirectly give, sell, purchase, offer or agree to give, sell, or
purchase, or allow as inducement to the insurance or annuity or in connection with the
insurance or annuity, regardless of whether specified in the policy or contract, an
agreement that promises returns and profits, or stocks, bonds, or other securities, or a
present or contingent interest in or measured by stocks, bonds, or other securities, of an
insurer or other corporation, association, or partnership, or dividends or profits accrued
or to accrue on stocks, bonds, or other securities; or

(4) offer, promise, or give [anything of value] ANY VALUABLE
CONSIDERATION not specified in the contract, EXCEPT FOR EDUCATIONAL
MATERIALS, PROMOTIONAL MATERIALS, OR ARTICLES OF MERCHANDISE, OF
NOMINAL VALUE THAT COST LESS THAN $10 (ADJUSTED FOR INFLATION, USING THE
CONSUMER PRICE INDEX - ALL URBAN CONSUMERS). REGARDLESS OF WHETHER A
POLICY IS PURCHASED.

27-212.

(b) Except to the extent provided for in an applicable filing with the

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