1088                           LAWS OF MARYLAND                      [CH. 553

therewith, and whether or not to be specified in the policy or contract,
any agreement of any form or nature promising returns and profits,
or any stocks, bonds, or other securities, or interest present or con-
tingent therein or as measured thereby, of any insurance company or
other corporation, association, or partnership, or any dividends or
profits accrued or to accrue thereon; or offer, promise or give any-
thing of value whatsoever not specified in the contract.

224A. PROHIBITION AGAINST USE OF INSURANCE AS
INDUCEMENT.

(A)   NO INSURER SHALL DIRECTLY OR INDIRECTLY, OR
BY ANY OF ITS AGENTS OR REPRESENTATIVES, PARTICI-
PATE IN ANY PLAN TO OFFER OR EFFECT ANY KIND OR
KINDS OF LIFE INSURANCE, HEALTH INSURANCE, OR AN-
NUITIES IN THIS STATE AS AN INDUCEMENT TO, OR IN
COMBINATION WITH, THE PURCHASE BY THE PUBLIC OF
ANY GOODS, SECURITIES, COMMODITIES, SERVICES, OR
SUBSCRIPTIONS TO PERIODICALS, EXCEPT UPON THE PAY-
MENT OF A BONA FIDE PREMIUM BY THE INSURED.

(B)   THIS SECTION SHALL NOT APPLY TO INSURANCE
ON THE LIFE OF A DEBTOR PURSUANT TO OR IN CONNEC-
TION WITH A SPECIFIC LOAN OR OTHER CREDIT TRANS-
ACTION, OR INSURANCE ON A DEBTOR TO PROVIDE IN-
DEMNITY FOR PAYMENTS BECOMING DUE ON A SPECIFIC
LOAN OR OTHER CREDIT TRANSACTION WHILE THE
DEBTOR IS DISABLED AS DEFINED IN THE POLICY.

225. Exceptions to Discrimination, Rebates Provision—Life, Health,
and Annuity Contracts.

Nothing in sections 223 and 224 shall be construed as including
within the definition of discrimination or rebates any of the follow-
ing practices:

(a)   In the case of any contract of life insurance or life annuity,
paying bonuses to policyholders or otherwise abating their premiums
in whole or in part out of surplus accumulated from nonparticipating
insurance, provided that any such bonuses, or abatement of premiums
shall be fair and equitable to policyholders and for the best interests
of the insurer and its policyholders.

(b)   In the case of life insurance and health insurance policies
issued on the industrial debit, preauthorized check, bank draft, or
similar plans, making allowance to policyholders who have continu-
ously for a specified period made premium payments directly to an
office of the insurer or by preauthorized check, bank draft, or similar
plans, in an amount which fairly represents the saving in collection
expense.

(c)   Readjustment of the rate of premium for a group insurance
policy based on the loss or expense experience thereunder, at the end
of the first or any subsequent policy year of insurance thereunder,
which may be made retroactive only for such policy year.

(d)   Reduction of premium rate for policies of large amount, but
not exceeding savings in issuance and administration expenses
reasonably attributable to such policies as compared with policies of
similar plan issued in smaller amounts.