1174                           LAWS OF MARYLAND                      [CH. 553

may also provide that if interest on any indebtedness is not paid
when due it shall then be added to the existing indebtedness and
shall bear interest at the same rate, and that if and when the total
indebtedness on the policy, including interest due or accrued, equals
or exceeds the amount of the loan value thereof, then the policy shall
terminate and become void, but not until at least 30 days notice
shall have been mailed by the insurer to the last known address of
the insured or policy owner and of any assignee of record at the
home office of the insurer. The policy shall reserve to the insurer the
right to defer the granting of a loan, other than for the payment of
any premium to the insurer, for six (6) months after application
therefor. The policy, at the insurer's option, may provide for auto-
matic premium loan, subject to an election of the party entitled to
elect.

This section shall not apply to term policies nor to term insurance
benefits provided by rider or supplemental policy provisions, or to
industrial life insurance policies.

395.    Table of Installments.

In case the policy provides that the proceeds may be payable in
installments or as annuity, a provision to that effect, together with
a table showing the amount and period of such installment or
annuity, if determinable at issue, shall be included in the policy.

396.    Reinstatement.

There shall be a provision that unless:

(1)   The policy has been surrendered for its cash surrender value,
or

(2)   Its cash surrender value has been exhausted by reason of
policy indebtedness, or

(3)   The paid-up term insurance, if any, has expired,

the policy will be reinstated at any time within three (3) years (or
two (2) years in the case of industrial life insurance policies) from
the due date of the first premium in default upon written applica-
tion therefor, the production of evidence of insurability satisfactory
to the insurer, the payment of all premiums in arrears and the pay-
ment or reinstatement of any other indebtedness to the insurer upon
the policy, all with interest at a specified rate not exceeding an effec-
tive rate of six percent (6%) per annum compounded annually.

397.    Payment of Claims.

There shall be a provision that when benefits under a policy be-
come payable by reason of the death of an insured, settlement shall
be made upon receipt of due proof of death and, at the insurer's
option, surrender of the policy and/or proof of the interest of the
claimant.

398.    Beneficiary.

(a) A life insurance policy shall have the name of the beneficiary
designated thereon, or in the application or other form if attached to
the policy, with a reservation of the right to designate or change the
beneficiary after the issuance of the policy, unless such beneficiary