3222

LAWS OF MARYLAND

Ch. 876

(5)  NOTWITHSTANDING THE REQUIREMENTS OF THIS
SECTION, ANY DEFERRED ANNUITY CONTRACT MAY PROVIDE THAT IF
NO CONSIDERATIONS HAVE BEEN RECEIVED UNDER A CONTRACT FOR A
PERIOD OF 2 YEARS AND THE PORTION OF THE PAID-UP ANNUITY
BENEFIT AT MATURITY ON THE PLAN STIPULATED IN THE CONTRACT
ARISING FROM CONSIDERATIONS PAID PRIOR TO SUCH PERIOD WOULD
BE LESS THAN $20 MONTHLY, THE COMPANY MAY AT ITS OPTION
TERMINATE THE CONTRACT BY PAYMENT IN CASH OF THE THEN
PRESENT VALUE OF SUCH PORTION OF THE PAID-UP ANNUITY
BENEFIT, CALCULATED ON THE BASIS OF THE MORTALITY TABLE, IF
ANY, AND INTEREST RATE SPECIFIED IN THE CONTRACT FOR
DETERMINING THE PAID-UP ANNUITY BENEFIT, AND BY THE PAYMENT
SHALL BE RELIEVED OF ANY FURTHER OBLIGATION UNDER THE
CONTRACT.

(6)  ANY CONTRACT WHICH DOES NOT PROVIDE CASH
SURRENDER BENEFITS OR DOES NOT PROVIDE DEATH BENEFITS AT
LEAST EQUAL TO THE MINIMUM NONFORFEITURE AMOUNT PRIOR TO THE
COMMENCEMENT OF ANY ANNUITY PAYMENTS SHALL INCLUDE A
STATEMENT IN 18-POINT TYPE IN A PROMINENT PLACE IN THE
CONTRACT THAT SUCH BENEFITS ARE NOT PROVIDED.

(D) THE MINIMUM VALUES AS SPECIFIED IN SUBSECTIONS
(E), (F), (G), (H), AND (I) OF ANY PAID-UP ANNUITY, CASH
SURRENDER, OR DEATH BENEFITS AVAILABLE UNDER AN ANNUITY
CONTRACT SHALL BE BASED UPON MINIMUM NONFORFEITURE AMOUNTS
AS DEFINED IN THIS SECTION.

(1) WITH RESPECT TO CONTRACTS PROVIDING FOR
FLEXIBLE CONSIDERATIONS, THE MINIMUM NONFORFEITURE AMOUNT AT
ANY TIME AT OR PRIOR TO THE COMMENCEMENT OF ANY ANNUITY
PAYMENTS SHALL BE EQUAL TO AN ACCUMULATION UP TO THAT TIME
AT A RATE OF INTEREST OF 3 PERCENT PER YEAR OF PERCENTAGES
OF THE NET CONSIDERATIONS (AS HEREINAFTER DEFINED) PAID
PRIOR TO SUCH TIME, THAT TIME, INCREASED BY ANY EXISTING
ADDITIONAL AMOUNTS CREDITED BY THE INSURER TO THE CONTRACT
AND SUCH TIME DECREASED BY THE SUM OF:

(I)  ANY PRIOR WITHDRAWALS FROM OR PARTIAL
SURRENDERS OF THE CONTRACT ACCUMULATED AT A RATE OF INTEREST
OF 3 PERCENT PER YEAR; AND

(II)  THE AMOUNT OF ANY INDEBTEDNESS TO THE
COMPANY INSURER ON THE CONTRACT, INCLUDING INTEREST DUE AND
ACCRUED; AND INCREASED BY ANY EXISTING ADDITIONAL AMOUNTS
CREDITED BY THE INSURER TO THE CONTRACT; AND INCREASED BY
ANY EXISTING ADDITIONAL AMOUNTS CREDITED BY THE COMPANY TO
THE CONTRACT.

THE NET CONSIDERATIONS FOR A GIVEN CONTRACT YEAR USED
TO DEFINE THE MINIMUM NONFORFEITURE AMOUNT SHALL BE AN
AMOUNT NOT LESS THAN ZERO AND SHALL BE EQUAL TO THE
CORRESPONDING GROSS CONSIDERATIONS CREDITED TO THE CONTRACT
DURING THAT CONTRACT YEAR LESS AN ANNUAL CONTRACT CHARGE OF
$30 AND LESS A COLLECTION CHARGE OF $1.25 PER CONSIDERATION
CREDITED TO THE CONTRACT DURING THAT CONTRACT YEAR. THE
PERCENTAGES OF NET CONSIDERATIONS SHALL BE 65 PERCENT OF THE