Marvin Mandel, Governor                          1001

Section 1. Be it enacted by the General Assembly of Maryland,
That new Section 362 be and it is hereby added to Article 48A of the
Annotated Code of Maryland (1968 Replacement Volume and 1969
Supplement), title "Insurance Code," to follow immediately after
Section 361A thereof, to be under the new subtitle "Variable Con-
tracts," and to read as follows:

21. Variable Contracts

362. Variable Contracts

(a)    Any stock or mutual life insurer authorized to issue life in-
surance and/or annuities in this State may also issue individual and
group variable life insurance and annuity contracts which provide
for payment varying directly with the investment experience of a
segregated asset account, upon being specifically authorized by the
Commissioner to issue such variable contracts, such authorization
being based on the insurer's compliance with rules and regulations
promulgated by the Commissioner. Such rules and regulations may
include requirements for a minimum capital and surplus in excess
of the amount otherwise required for the issuance of life insurance
and/or annuities which are not variable contracts, and such other
requirements which the Commissioner deems appropriate to safe-
guard the interests of variable contract holders, other policy holders,
insurers, and the public.

(b)    The investments in any such segregated asset account shall
be subject to the provisions of this article except that preferred and
common stock investments of amounts allocated to any such account
shall not be included in applying the 10% limitations provided in the
first proviso of Section 96, subsection (6) of this article. Such in-
vestments shall also comply with rules and regulations promulgated
by the Commissioner in regard to such segregated asset accounts.

(c)    No variable life insurance policies and annuity contracts
shall be delivered, or issued for delivery, in this State until the form
thereof has been filed with and approved by the Commissioner. The
Commissioner shall, by regulation, determine the grace, reinstate-
ment and non-forfeiture provisions and other pertinent required
policy provisions which shall be appropriate to such variable con-
tracts.

Sec. 2. And be it further enacted, That this Act shall take effect
July 1, 1970.

Approved April 28, 1970

CHAPTER 428
(House Bill 565)

AN ACT to repeal and re-enact, with amendments, Section 376 of
Article 48A of the Annotated Code of Maryland (1968 Replace-
ment Volume and 1969 Supplement), title "Insurance Code," sub-
title "The Insurance Contract; General GENERALLY," to pro-