3224

LAWS OF MARYLAND

Ch. 876

INDEBTEDNESS TO THE COMPANY ON THE CONTRACT, INCLUDING
INTEREST DUE AND ACCRUED, AND INCREASED BY ANY EXISTING
ADDITIONAL AMOUNTS CREDITED BY THE COMPANY TO THE CONTRACT
INCREASED BY ANY EXISTING ADDITIONAL AMOUNTS CREDITED BY THE
INSURER TO THE CONTRACT AND DECREASED BY THE AMOUNT OF ANY
INDEBTEDNESS TO THE INSURER ON THE CONTRACT, INCLUDING
INTEREST DUE AND ACCRUED DECREASED BY THE AMOUNT OF ANY
INDEBTEDNESS TO THE COMPANY ON THE CONTRACT, INCLUDING
INTEREST DUE AND ACCRUED, AND INCREASED BY ANY EXISTING
ADDITIONAL AMOUNTS CREDITED BY THE COMPANY TO THE CONTRACT.
ANY CASH SURRENDER BENEFIT MAY NOT BE LESS THAN THE MINIMUM
NONFORFEITURE AMOUNT AT THAT TIME. THE DEATH BENEFIT UNDER
THESE CONTRACTS SHALL BE AT LEAST EQUAL TO THE CASH
SURRENDER BENEFIT.

(G) FOR CONTRACTS WHICH DO NOT PROVIDE CASH SURRENDER
BENEFITS, THE PRESENT VALUE OF ANY PAID-UP ANNUITY BENEFIT
AVAILABLE AS A NONFORFEITURE OPTION AT ANY TIME PRIOR TO
MATURITY MAY NOT BE LESS THAN THE PRESENT VALUE OF THAT
PORTION OF THE MATURITY VALUE OF THE PAID-UP ANNUITY BENEFIT
PROVIDED UNDER THE CONTRACT ARISING FROM CONSIDERATIONS PAID
PRIOR TO THE TIME THE CONTRACT IS SURRENDERED IN EXCHANGE
FOR, OR CHANGED TO, A DEFERRED PAID-UP ANNUITY, SUCH PRESENT
VALUE BEING CALCULATED FOR THE PERIOD PRIOR TO THE MATURITY
DATE ON THE BASIS OF THE INTEREST RATE SPECIFIED IN THE
CONTRACT FOR ACCUMULATING THE NET CONSIDERATIONS TO
DETERMINE THE MATURITY VALUE, AND INCREASED BY ANY EXISTING
ADDITIONAL AMOUNTS CREDITED BY THE COMPANY TO THE CONTRACT.
FOR CONTRACTS WHICH DO NOT PROVIDE ANY DEATH BENEFITS PRIOR
TO THE COMMENCEMENT OF ANY ANNUITY PAYMENTS, SUCH PRESENT
VALUES SHALL BE CALCULATED ON THE BASIS OF THE INTEREST RATE
AND THE MORTALITY TABLE SPECIFIED IN THE CONTRACT FOR
DETERMINING THE MATURITY VALUE OF THE PAID-UP ANNUITY
BENEFIT. HOWEVER, THE PRESENT VALUE OF A PAID-UP ANNUITY
BENEFIT MAY NOT BE LESS THAN THE MINIMUM NONFORFEITURE
AMOUNT AT THAT TIME.

(H) FOR THE PURPOSE OF DETERMINING THE BENEFITS
CALCULATED UNDER SUBSECTIONS (F) AND (G), IN THE CASE OF
ANNUITY CONTRACTS UNDER WHICH AN ELECTION MAY BE MADE TO
HAVE ANNUITY PAYMENTS COMMENCE AT OPTIONAL MATURITY DATES,
THE MATURITY DATE SHALL BE DEEMED TO BE THE LATEST DATE FOR
WHICH ELECTION SHALL BE PERMITTED BY THE CONTRACT, BUT MAY
NOT BE LATER THAN THE ANNIVERSARY OF THE CONTRACT NEXT
FOLLOWING THE ANNUITANT'S SEVENTIETH BIRTHDAY OR THE TENTH
ANNIVERSARY OF THE CONTRACT, WHICHEVER IS LATER.

(I) ANY PAID-UP ANNUITY, CASH SURRENDER, OR DEATH
BENEFITS AVAILABLE AT ANY TIME, OTHER THAN ON THE CONTRACT
ANNIVERSARY UNDER ANY CONTRACT WITH FIXED SCHEDULED
CONSIDERATIONS, SHALL BE CALCULATED WITH ALLOWANCE FOR THE
LAPSE OF TIME AND THE PAYMENT OF ANY SCHEDULED
CONSIDERATIONS BEYOND THE BEGINNING OF THE CONTRACT YEAR IN
WHICH CESSATION OF PAYMENT OF CONSIDERATIONS UNDER THE
CONTRACT OCCURS.