1556

LAWS OF MARYLAND

Ch. 421

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 83(3) (a-1) and 414(j) and (k)

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be repealed, amended, or enacted to read as follows: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

83.

(3) This subsection shall apply to only those
policies and contracts issued on or after the operative date
of § 414 (the Standard Nonforfeiture Law), except as
otherwise provided in paragraph (a—2) of this subsection for
group annuity and pure endowment contracts issued prior to
such operative date.

(a-1) Except as otherwise provided in paragraph (a—2)
of this subsection, the minimum standard for the valuation
of all such policies and contracts shall be the
Commissioners reserve valuation method defined in paragraph
(b), three and one-half percent (3 1/2%) interest, OR IN
THE CASE OF POLICIES AND CONTRACTS, OTHER THAN ANNUITY AND
PURE ENDOWMENT CONTRACTS, ISSUED ON OR AFTER THE EFFECTIVE
DATE OF THIS AMENDATORY ACT OF 1977 1978 AND PRIOR TO
JANUARY 1, 1986, FOUR PERCENT (4%) INTEREST, and the
following tables:

(i) For all ordinary policies of life insurance issued
on the standard basis, excluding any disability and
accidental death benefits in such policies—the
Commissioners 1941 Standard Ordinary Mortality Table for
such policies issued prior to the operative date of
subsection (j) of § 414, and the Commissioners 1958 Standard
Ordinary Mortality Table for such policies issued on or
after such operative date. Any differential based on sex
shall reflect actuarial expectancies and shall be subject to
approval by the Commissioner.

(ii) For all industrial life insurance policies issued
on the standard basis, excluding any disability and
accidental death benefits in such policies—the 1941
Standard Industrial Mortality Table for such policies issued
prior to the operative date of subsection (k) of § 414, and
the Commissioners 1961 Standard Industrial Mortality Table
for such policies issued on or after such operative date.

(iii) For individual annuity and pure endowment
contracts, excluding any disability and accidental death
benefits in such policies—the 1937 Standard Annuity
Mortality Table or, at the option of the insurer, the
Annuity Mortality Table for 1949, Ultimate, or any