J. MILLARD TAWES, Governor                     1187

existing indebtedness to the insurer on or secured by the policy.
Provided, however, that after premiums have been paid for ten full
years, the policy may be surrendered to the insurer at its home office,
within the period of grace, after the due date of the defaulted pre-
mium, for a specified cash value at least equal to the sum which would
otherwise be available for the purchase of insurance as aforesaid;
and provided, further, that the company may defer payment for not
more than six months after the application therefor is made. In the
event that such application is not made within the required period, it
shall be provided that a stipulated form of insurance shall automati-
cally become effective. This section shall not apply to term insurance
of twenty years or less.

416.    Prohibited Policy Plans; Tie-in Sales With Life Insurance.

No life insurer shall deliver in this State, as a part of or in com-
bination with any insurance, endowment or annuity contract, any
agreement or plan, additional to the rights, dividends, and benefits
arising out of any such insurance, endowment, or annuity contract:

(1)   Which provides for the accumulation of profits over a period
of years and for payment of all or any part of such accumulated
profits only to members or policyholders of a designated group or
class who continue as members or policyholders until the end of a
specified period of years; or

(2)   Which provides that on the death of anyone, other than a
beneficiary or a person insured thereunder, the owner or beneficiary
of the policy shall receive the payment or granting of anything of
value; or

(3)   Which provides that the whole or any part of the premiums
or consideration for the policy, dividends, coupons, reserves, special
reserves, or the excess interest therefrom or any funds or money in
excess of the normal reserve required to meet the contractual guar-
antees of the policy, are to be placed or invested in special funds or
segregated accounts not involving insurance or life contingency fea-
tures, and the funds or earnings therefrom divided among those
taking the policy, their beneficiaries or assignees; or

(4)   Which provides for the sale, solicitation, or delivery of any
stock or shares of stock in any company, or provides for a benefit
certificate, securities or any special advisory board contract, or other
contracts or resolutions of similar nature, or provides for policy
dividends bearing a stated relationship to dividends on the stock of
any company, as an inducement to or in connection with the sale or
acceptance of such policy.

24. GROUP LIFE INSURANCE

417.    Group Contracts Must Meet Group Requirements.

(a)   No life insurance policy shall be delivered in this State in-
suring the lives of more than one individual unless to one of the
groups as provided for in sections 418 through 424 of this subtitle,
and unless in compliance with the other applicable provisions of
this subtitle.

(b)   Subsection (a) above, shall not apply to life insurance
policies: