3360

LAWS OF MARYLAND

Ch. 553

(IV)  FOR OTHER ANNUITIES WITH NO CASH
SETTLEMENT OPTIONS AND FOR GUARANTEED INTEREST. CONTRACTS
WITH NO CASH SETTLEMENT OPTIONS, THE FORMULA FOR SINGLE
PREMIUM IMMEDIATE ANNUITIES SET OUT IN (II) ABOVE SHALL
APPLY;

(V)  FOR OTHER ANNUITIES WITH CASH
SETTLEMENT OPTIONS AND GUARANTEED INTEREST CONTRACTS WITH
CASH SETTLEMENT OPTIONS, VALUED ON A CHANGE IN FUND BASIS,
THE FORMULA FOR SINGLE PREMIUM IMMEDIATE ANNUITIES SET OUT
IN (II) ABOVE SHALL APPLY.

HOWEVER, IF THE CALENDAR YEAR STATUTORY VALUATION
INTEREST RATE FOR ANY LIFE INSURANCE POLICY ISSUED IN ANY
CALENDAR YEAR DETERMINED WITHOUT REFERENCE TO THIS SENTENCE
DIFFERS FROM THE CORRESPONDING ACTUAL RATE FOR A SIMILAR
POLICY ISSUED IN THE IMMEDIATELY PRECEDING CALENDAR YEAR BY
LESS THAN 1/2 PERCENT, THE CALENDAR YEAR STATUTORY VALUATION
INTEREST RATE FOR THAT LIFE INSURANCE POLICY SHALL BE EQUAL
TO THE CORRESPONDING ACTUAL RATE FOR THE IMMEDIATELY
PRECEDING CALENDAR YEAR. FOR PURPOSES OF APPLYING THE
IMMEDIATELY PRECEDING SENTENCE, THE CALENDAR YEAR STATUTORY
VALUATION INTEREST RATE FOR A LIFE INSURANCE POLICY ISSUED
IN A CALENDAR YEAR SHALL BE DETERMINED FOR 1980 (USING THE
REFERENCE INTEREST RATE DEFINED FOR 1979) AND SHALL BE
DETERMINED FOR EACH SUBSEQUENT CALENDAR YEAR REGARDLESS OF
WHEN SUBSECTION (K-l) OF SECTION 414 BECOMES OPERATIVE.

(3) THE WEIGHTING FACTORS REFERRED TO IN THE
FORMULAS SET OUT ABOVE ARE:

(I)  FOR LIFE INSURANCE:

GUARANTEE

DURATION                          WEIGHTING

(YEARS)                               FACTORS

10 OR LESS                             .50

MORE THAN 10,   BUT NOT

MORE THAN 20                         .45

MORE THAN 20                         .35

FOR LIFE INSURANCE, THE GUARANTEE
DURATION IS THE MAXIMUM NUMBER OF YEARS THE LIFE INSURANCE
CAN REMAIN IN FORCE ON A BASIS GUARANTEED IN THE POLICY OR
UNDER OPTIONS TO CONVERT TO PLANS OF LIFE INSURANCE WITH
PREMIUM RATES OR NONFORFEITURE VALUES, OR BOTH, WHICH ARE
GUARANTEED IN THE ORIGINAL POLICY;

(II)  FOR SINGLE PREMIUM IMMEDIATE
ANNUITIES AND FOR ANNUITY BENEFITS INVOLVING LIFE
CONTINGENCIES ARISING FROM OTHER ANNUITIES WITH CASH
SETTLEMENT OPTIONS AND GUARANTEED INTEREST CONTRACTS WITH
CASH SETTLEMENT OPTIONS: