714 LAWS OF MARYLAND. [CH. 561

the lapse of time and the payment of fractional premiums be-
yond the last preceding policy anniversary. All values re-
ferred to in Sub-sections (2), (3) and (4) may be calculated
upon the assumption that any death benefit is payable at the
end of the policy year of death. The net value of any paid-up
additions, other than paid-up term additions, shall be not less
than the dividends used to provide such additions. Notwith-
standing the provisions of Sub-section (2), additional benefits
payable (i) in the event of death or dismemberment by acci-
dent or accidental means, (ii) in the event of total and per-
manent disability, (iii) as reversionary annuity or deferred
reversionary annuity benefits, (iv) as decreasing term insur-
ance benefits provided by a rider or supplemental policy pro-
vision to which, if issued as a separate policy, this section
would not apply, and (v) as other policy benefits additional
to life insurance and endowment benefits, and premiums for all
such additional benefits, shall be disregarded in ascertaining
cash surrender values and non-forfeiture benefits required by
this section, and no such additional benefits shall be required to
be included in any paid-up non-forfeiture benefits.

(6) This section, shall not apply to any reinsurance, group
insurance, pure endowment, annuity or reversionary annuity
contract, nor to any term policy of uniform amount, or re-
newal thereof, of fifteen years or less expiring before age sixty-
six, for which uniform premiums are payable during the entire
term of the policy, nor to any term policy of decreasing amount
on which each adjusted premium, calculated as specified in
Sub-section (4), is less than the adjusted premium so calcu-
lated, on such fifteen year term policy issued at the same age
and for the same initial amount of insurance, nor to any
policy which shall be delivered outside this State through an
agent or other representative of the company issuing the policy.

(7) After the effective date of this Act, any company may
file with the Commissioner a written notice of its election to
comply with the provisions of this section after a specified date
before January first, nineteen hundred and forty-eight. After
the filing of such notice, then upon such specified date (which
shall be the operative date for such company), this section shall
become operative with respect to the policies thereafter issued
by such company. If a company makes no such election, the
operative date of this section for such company shall be Janu-
ary first, nineteen hundred and forty-eight.

SEC. 3. And be it further enacted, That this Act shall take
effect June 1, 1943.

Approved May 4, 1943.