30                                   Laws op Maryland                           [Ch. 21

the payment of a premium as the contract holder may elect, or at the
insured's option permitted to accumulate to the credit of the contract
at such route of interest as shall be allowed by the insurer and such
other dividend option as may be provided by the insurer; provided,
however, that in the case of any deferred annuity contract, such con-
tract need not provide for participation in surplus after the period
following the deferment of annuity payments.

(g) Notwithstanding the provisions of the second sentence of
Sub-section (f) above, if an insurer authorized to transact business
in this State prior to the effective date of this Act, has used a con-
tract form restricting the dividend options to the "Cash Deferred
Accumulated Basis" described below, then the contracts issued there-
after by such insurer may, in lieu of the required dividend options.
set forth in said sentence of Subsection (f) above, provide that the
owner of the contract shall have the right to have the dividend
arising from such participation, paid in cash or payable on such
"Cash Deferred Accumulated Basis" and such other dividend options
as may be provided by the contract.

"Cash Deferred Accumulated Basis" is defined as follows:

(1) The annual dividends shall be accumulated by the insurer to
the credit of the contract at such rate of interest as shall be allowed
by the insurer, and while the contract is in force, at the end of a
specified period and at the end of each such period thereafter, the
period not to exceed five years, any accumulation of dividends and
interest then to the credit of the contract shall be paid to the owner
in cash, and (2) Upon the termination of the contract by maturity or
upon the election of a non-forfeiture option, or in the event the con-
tract shall lapse for non-payment of premium, or in the event of the
owner's death, any accumulations of dividends and interest then to the
credit of the contract shall be paid to the person or persons entitled to
such accumulations in accordance with the provisions of the contract.

(h) In the event of default in premium payments after three full
years' premiums have been paid the annuity shall, without any
further act or stipulation, be converted into a paid-up annuity for
such proportion of the original annuity as the number of completed
years⁹ premiums paid bears to the total number of premiums required
under the contract.

(i) A provision that the contract will be reinstated at any time
within one year from the date of default, during the lifetime of the
annuitant and unless the contract has been surrendered for its cash
surrender value upon the written application of the person entitled
thereto pursuant to the provisions of the contract, and the payment
of all overdue premiums and any indebtedness to the insurer upon
said contract all with a specified interest rate not exceeding six per
cent, per annum compounded annually, and in cases where applicable,
the insurer may also include a requirement of evidence of insurability
satisfactory to the insurer.

(j) This section shall not apply to contracts for deferred annuities
included in, or upon the lives of beneficiaries under life insurance
policies.

184B. (Reversionary Annuities; Uniform Provisions.) (a) No
contract for a reversionary annuity, otherwise called a survivorship