MARVIN MANDEL, Governor

2997

(A) EACH LIFE INSURANCE POLICY OR ANNUITY CONTRACT
SUBJECT TO THIS SUBTITLE SHALL HAVE ATTACHED OR
PROMINENTLY PRINTED ON THE FACE OF THE POLICY OR CONTRACT
THE FOLLOWING INFORMATION:

(1)     A NOTICE TO THE POLICYHOLDER THAT,
DURING THE PERIOD OF TEN DAYS FROM THE DATE THE POLICY OR
CONTRACT IS DELIVERED TO THE POLICYHOLDER, IT MAY BE
SURRENDERED TO THE INSURER FOR CANCELLATION, AND A PRO
RATA PREMIUM FOR THE UNEXPIRED TERM OF THE POLICY SHALL
BE RETURNED TO THE POLICYHOLDER. THE NOTICE SHALL BE
GIVEN TO THE INSURER IN WRITING; OR

(2)    A NOTICE TO THE POLICYHOLDER WHICH IS
SIMILAR TO THE NOTICE CONTAINED IN PARAGRAPH (1) AND
WHICH, IN THE OPINION OF THE COMMISSIONER, IS NOT LESS
FAVORABLE TO THE POLICYHOLDER.

(B) THIS SECTION SHALL NOT APPLY TO POLICIES OR
CONTRACTS ISSUED TO AN EMPLOYEE IN CONNECTION WITH THE
FUNDING OF A PENSION, ANNUITY OR PROFIT SHARING PLAN,
QUALIFIED OR EXEMPT UNDER SECTION 401, 403, 404 OR 501 OF
THE UNITED STATES INTERNAL REVENUE CODE OF 1954 IF
PARTICIPATION IN THE PLAN IS 1 CONDITION OF EMPLOYMENT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1975.

Approved May 15, 1975.

CHAPTER 651
(House Bill 148)

AN ACT concerning

Insurance — Motor Vehicle Security Fund

FOR the purpose of abolishing the Motor Vehicle Security
Fund and transferring its assets, claims, and duties
to the Maryland Insurance Guaranty Association;
clarifying definitions; eliminating the requirement
that board selections for the Association be
submitted to the Insurance Commission; eliminating
the requirement that the Insurance Commissioner be
and remain a member of the Board of Directors of the
Maryland Insurance Guaranty Association and be its
Chairman; and correcting certain language.