J. MILLARD TAWES. Governor                     1177

for delivery in this State unless it contains in substance each of the
provisions specified in sections 403 to 408, inclusive, of this subtitle.
Any of such provisions not applicable to single premium annuities
or single premium pure endowment contracts shall not, to that
extent, be incorporated therein.

(b) This section shall not apply to contracts for deferred annui-
ties included in or upon the lives of beneficiaries under, life insur-
ance policies.

403.    Grace Period—Annuities.

There shall be a provision that there shall be a period of grace of
not less than thirty (30) days, within which any stipulated payment
to the insurer falling due after the first may be made, subject at the
option of the insurer to an interest charge thereon at a rate to be
specified in the contract but not exceeding six percent (6%) per
annum for the number of days of grace elapsing before such payment,
during which period of grace the contract shall continue in full
force; but in case a claim arises under the contract on account of
death prior to expiration of the period of grace before the overdue
payment to the insurer or the deferred payments of the current
contract year, if any, are made, the amount of such payments, with
interest on any overdue payments, may be deducted from any amount
payable under the contract in settlement.

404.    Incontestability—Annuities.

If any statements, other than those relating to age, sex and identity
are required as a condition to issuing an annuity or pure endowment
contract, and subject to section 406 of this subtitle, there shall be a
provision that the contract shall be incontestable after it has been in
force during the lifetime of the person or of each of the persons as
to whom such statements are required, for a period of two (2) years
from its date of issue, except for nonpayment of stipulated payments
to the insurer; and at the option of the insurer such contract may
also except any provisions relative to benefits in the event of dis-
ability and any provisions which grant insurance specifically
against death by accident or accidental means.

405.    Entire Contract—Annuities.

There shall be a provision that the contract shall constitute the
entire contract between the parties or, if a copy of the application is
endorsed upon or attached to the contract when issued, a provision
that the contract and the application therefor shall constitute the
entire contract between the parties.

406.    Misstatement of Age or Sex—Annuities.

There shall be a provision that if the age or sex of the person or
persons upon whose life or lives the contract is made, or of any of
them, has been misstated, the amount payable or benefits accruing
under the contract shall be such as the stipulated payment or pay-
ments to the insurer would have purchased according to the correct
age or sex and that if the insurer shall make or has made any over-
payment or overpayments on account of any such misstatement, the
amount thereof, with interest at the rate to be specified in the con-
tract but not exceeding six percent (6%) per annum, may be