3216

LAWS OF MARYLAND

Ch. 876

(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]
THE 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] METHODS defined in
[paragraph (b),] PARAGRAPHS (B-l), (B-2), AND (E), [three
and one-half] 3 1/2 percent [(3 1/2%)] interest, or in the
case of policies and contracts, other than annuity and pure
endowment contracts, issued on or after July 1, 1978, [and
prior to January 1, 1986, four] 4 percent [(4%)] interest
FOR SUCH POLICIES ISSUED PRIOR TO JULY 1, 1980, AND 4 1/2
PERCENT INTEREST FOR POLICIES ISSUED ON OR AFTER JULY 1,
1980, 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[.], PROVIDED THAT FOR ANY
CATEGORY OF SUCH POLICIES ISSUED ON FEMALE RISKS, ALL
MODIFIED NET PREMIUMS AND PRESENT VALUES REFERRED TO IN THIS
SUBSECTION MAY BE CALCULATED ACCORDING TO AN AGE NOT MORE
THAN 6 YEARS YOUNGER THAN THE ACTUAL AGE OF THE INSURED.
[Any differential based on sex shall reflect actuarial
expectancies and shall be subject to approval by the
Commissioner.]

(a-2) The minimum standard for the valuation of
all individual annuity and pure endowment contracts issued
on or after the operative date of this paragraph [(a-2)], as
defined herein, and for all annuities and pure endowments
purchased on or after [such] THIS operative date under group
annuity and pure endowment contracts, shall be the
commissioners reserve valuation [method] METHODS defined in
[paragraph (b)] PARAGRAPHS (B-l) AND (B-2) and the following
tables and interest rates:

(i) For individual annuity and pure
endowment contracts issued prior to [January 1, 1986] JULY
1, 1980, excluding any disability and accidental death
benefits in such contracts—the 1971 Individual Annuity
Mortality Table, or any modification of this table approved
by the Commissioner, and [six] 6 percent [(6%)] interest for
single premium immediate annuity contracts, and [four] 4
percent [(4%)] interest for all other individual annuity and
pure endowment contracts.