3218

LAWS OF MARYLAND

Ch. 876

makes no such election, the operative date of this paragraph
for such insurer shall be January 1, 1979.

[(b)] (B-l) [Reserves] EXCEPT AS OTHERWISE
PROVIDED IN PARAGRAPHS (B-2) AND (E), RESERVES according to
the commissioners reserve valuation method, for the life and
endowment insurance benefits of policies providing for a
uniform amount of insurance and requiring the payment of
uniform premiums shall be the excess, if any, of the present
value, at the date of valuation, of such future guaranteed
benefits provided for by such policies, over the then
present value of any future modified net premiums therefor.
The modified net premiums for any such policy shall be such
uniform percentage of the respective contract premiums for
such benefits that the present value, at the date of issue
of the policy, of all such modified net premiums shall be
equal to the sum of the then present value of such benefits
provided for by the policy and the excess of (A) over (B),
as follows:

(A)  A net level annual premium equal
to the present value, at the date of issue, of such benefits
provided for after the first policy year, divided by the
present value, at the date of issue, of an annuity of one
per annum payable on the first and each subsequent
anniversary of such policy on which a premium falls due;
provided, however, that such net level annual premium shall
not exceed the net level annual premium on the nineteen year
premium whole life plan for insurance of the same amount at
an age one year higher than the age at issue of such policy.

(B)  A net one year term premium for
such benefits provided for in the first policy year.

Reserves according to the commissioners reserve
valuation method for (i) life insurance policies providing
for a varying amount of insurance or requiring the payment
of varying premiums, (ii) GROUP annuity and pure endowment
contracts PURCHASED UNDER A RETIREMENT PLAN OR PLAN OF
DEFERRED COMPENSATION, ESTABLISHED OR MAINTAINED BY AN
EMPLOYER (INCLUDING A PARTNERSHIP OR SOLE PROPRIETORSHIP) OR
BY AN EMPLOYEE ORGANIZATION, OR BY BOTH, OTHER THAN A PLAN
PROVIDING INDIVIDUAL RETIREMENT ACCOUNTS OR INDIVIDUAL
RETIREMENT ANNUITIES UNDER SECTION 408 OF THE INTERNAL
REVENUE CODE, AS AMENDED, (iii) disability and accidental
death benefits in all policies and contracts, and (iv) all
other benefits, except life and endowment insurance benefits
in life insurance policies AND BENEFITS PROVIDED BY ALL
OTHER ANNUITY AND PURE ENDOWMENT CONTRACTS, shall be
calculated by a method consistent with the principles of
[this] THE PRECEDING paragraph, except that any extra
premiums charged because of impairments or special hazards
shall be disregarded in the determination of modified net
premiums.

(B-2) THIS SECTION SHALL APPLY TO ALL ANNUITY
AND PURE ENDOWMENT CONTRACTS OTHER THAN GROUP ANNUITY AND