1172                              LAWS OF MARYLAND                        [CH. 553

391.    Entire Contract.

There shall be a provision that the policy, or the policy and the
application therefor if a copy of such application is endorsed upon
or attached to the policy when issued, shall constitute the entire con-
tract between the parties, and if the application is so made a
part of the policy, that all statements contained in the application
shall, in the absence of fraud, be deemed representations and not
warranties.

392.    Misstatement of Age.

There shall be a provision that if the age of the insured or of any
other person whose age is considered in determining the premium
or benefit has been misstated, any amount payable or benefit accru-
ing under the policy shall be such as the premium would have pur-
chased at the correct age or ages.

392A. MISSTATEMENT OF AGE; OPTION TO RESCIND.

IF THE APPLICATION OR POLICY EXPRESSLY LIMITS
THE INSURABLE AGE OR AGES AND THE CORRECT AGE
OR AGES AT THE DATE OF ISSUE IS NOT WITHIN SUCH
AGE LIMITS, THE POLICY MAY, DURING THE LIFETIME OF
THE INSURED, BUT NOT LATER THAN THREE YEARS
AFTER THE DATE OF ISSUE OF THE POLICY, BE VOIDABLE
AT THE OPTION OF THE INSURER, UPON RETURN TO THE
INSURED OF THE AGGREGATE OF GROSS PREMIUMS
CHARGED ON THE POLICY, LESS DIVIDENDS PAID IN
CASH, OR USED IN THE PAYMENT OF PREMIUMS THERE-
ON, AND LESS ANY INDEBTEDNESS TO THE INSURER ON
THE POLICY INCLUDING INTEREST DUE AND ACCRUED;
BUT IN NO CASE MAY SUCH OPTION BE EXERCISED BE-
YOND THIRTY DAYS AFTER THE CORRECT AGE IS ESTAB-
LISHED. IF SUCH OPTION IS NOT EXERCISED BY THE IN-
SURER OR IF NO AGE DISCREPANCY IS DISCOVERED
WITHIN THREE YEARS AFTER THE DATE OF ISSUE OF
THE POLICY, THEN SUCH POLICY CANNOT BE VOIDED BY
THE INSURER, BUT THE AMOUNT PAYABLE SHALL BE
DETERMINED IN ACCORDANCE WITH SECTION 392; PRO-
VIDED, HOWEVER, IF THE RATES OF PREMIUM OF THE
INSURER AT THE DATE OF ISSUE OF THE POLICY DO NOT
INCLUDE THE RATE FOR SUCH CORRECT AGE OR AGES,
THEN THE AMOUNT PAYABLE SHALL BE DETERMINED IN
ACCORDANCE WITH ESTABLISHED ACTUARIAL PRIN-
CIPLES.

393.    Dividends.

(a) In a participating ordinary life insurance policy, there shall
be a provision that the insurer shall annually ascertain and appor-
tion any divisible surplus under the policy which will accrue on the
policy anniversary or other dividend date specified in the policy, and
that dividends arising from such apportionment shall be credited
annually beginning not later than the end of the third policy year.
The payment of any dividend payable on or after the end of the third
policy year shall not be made contingent upon the payment of any
premium due on or after the date when such dividend becomes pay-
able. The policy shall provide that the party entitled thereto shall