1180                            LAWS OF MARYLAND                       [CH. 553

(b)   A policy which contains any exclusion or restriction pursuant
to subsection (a) of this section shall also provide that in the event
of death under the circumstances to which any such exclusion or
restriction is applicable, the insurer will pay a determinable amount
which in no event shall be less than the reserve in accordance with
the Commissioners reserve valuation method upon the basis of the
mortality table and interest rate specified in the policy for the calcu-
lation of nonforfeiture benefits (or if the policy provides for no such
benefits, computed according to a mortality table and interest rate
determined by the insurer and specified in the policy), provided such
table and interest rate are acceptable as a standard for the valuation
of such policy in accordance with Section 83 with adjustment for
indebtedness or dividend credit.

(c)   This section shall not apply to group life insurance, reinsur-
ance, or to any provision in a life insurance policy relating to addi-
tional disability benefits or to additional benefits in the event of
death by accident or accidental means.

(d)   Nothing contained in this section shall prohibit any provision
which in the opinion of the Commissioner is more favorable to the
policyholder than a provision permitted by this section.

411.    Prohibited Provisions, Life Insurance.

No policy of life insurance shall contain any of the following
provisions:

(1)   A provision by which the insurer may reduce or deny liability
under the policy for the reason that the insured has previously
obtained other insurance from the same insurer.

(2)   A provision giving the insurer the right to declare the policy
void because the insured has had any disease or ailment, whether
specified or not, or because the insured has received institutional,
hospital, medical or surgical treatment or attention, except a provi-
sion which gives the insurer the right to declare the policy void if
the insured has, within two years prior to the issuance of the policy,
received institutional, hospital, medical or surgical treatment or
attention and if the insured or claimant under the policy fails to
show that the condition occasioning such treatment or attention was
not of a serious nature or was not material to the risk.

(3)   A provision giving the insurer the right to declare the policy
void because the insured has been rejected for insurance, unless such
right be conditioned upon a showing by the insurer that knowledge
of such rejection would have led to a refusal by the insurer to make
such contract.

412.    Incontestability, Limitation of Liability After Reinstatement;
Life and Annuities.

(a)   A reinstated policy of life insurance or annuity contract may
be contested on account of fraud or misrepresentation of facts mate-
rial to the reinstatement only for the same period following rein-
statement and with the same conditions and exceptions as the policy
provides with respect to contestability after original issuance.

(b)   When any life insurance policy or annuity contract is rein-
stated, such reinstated policy or contract may exclude or restrict