BLAIR LEE III, Acting Governor                         1527

(House Bill 1780)

AN ACT concerning

Life Insurance — Benefits

FOR the purpose of requiring insurers to include a provision
in life insurance contracts which provide for certain
refunds of premiums.

BY repealing and reenacting, with amendments,

Article 48A — Insurance Code

Section 397

Annotated Code of Maryland

(1972 Replacement Volume and 1977 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 48A — Insurance Code

3 97.

There shall be a provision that when benefits under a
policy become payable by reason of the death of an insured,
settlement shall be made upon receipt of due proof of death
and, at the insurer's option, surrender of the policy and/or
proof of the interest of the claimant. THE PROVISION SHALL
STATE THAT THE BENEFITS INCLUDE THE REFUND OF PREMIUMS PAID
BEYOND THE MONTH IN WHICH DEATH OCCURRED.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1978.

Approved May 2, 1978.

CHAPTER 405

(House Bill 1832)

AN ACT concerning

Mental Health Facilities - Hearings

FOR the purpose of permitting a parent or legal guardian or
next of kin to testify at an administrative release
hearing; and providing notification of the hearing to
the parent or legal guardian or next of kin.

BY repealing and reenacting, with amendments,