3362

LAWS OF MARYLAND

Ch. 553

CASH SETTLEMENT OPTIONS, THE GUARANTEE DURATION IS THE
NUMBER OF YEARS FOR WHICH THE CONTRACT GUARANTEES INTEREST
RATES IN EXCESS OF THE CALENDAR YEAR STATUTORY VALUATION
INTEREST RATE FOR LIFE INSURANCE POLICIES WITH GUARANTEE
DURATION IN EXCESS OF 20 YEARS. FOR OTHER ANNUITIES WITH NO
CASH SETTLEMENT OPTIONS AND FOR GUARANTEED INTEREST
CONTRACTS WITH NO CASH SETTLEMENT OPTIONS, THE GUARANTEE
DURATION IS THE NUMBER OF YEARS FROM THE DATE OF ISSUE OR
DATE OF PURCHASE TO THE DATE ANNUITY BENEFITS ARE SCHEDULED
TO COMMENCE.

5.  PLAN TYPE AS USED IN THE ABOVE
TABLES IS DEFINED AS FOLLOWS:

PLAN TYPE A: AT ANY TIME POLICYHOLDER MAY WITHDRAW
FUNDS ONLY (A) WITH AN ADJUSTMENT TO REFLECT CHANGES IN
INTEREST RATES OR ASSET VALUES SINCE RECEIPT OF THE FUNDS BY
THE INSURER, OR (B) WITHOUT SUCH ADJUSTMENT BUT IN
INSTALLMENTS OVER 5 YEARS OR MORE, OR (C) AS AN IMMEDIATE
LIFE ANNUITY, OR (D) NO WITHDRAWAL PERMITTED.

PLAN TYPE B: BEFORE EXPIRATION OF THE INTEREST RATE
GUARANTEE, POLICYHOLDER MAY WITHDRAW FUNDS ONLY (A) WITH AN
ADJUSTMENT TO REFLECT CHANGES IN INTEREST RATES OR ASSET
VALUES SINCE RECEIPT OF THE FUNDS BY THE INSURER, OR (B)
WITHOUT SUCH ADJUSTMENT BUT IN INSTALLMENTS OVER 5 YEARS OR
MORE, OR (C) NO WITHDRAWAL PERMITTED. AT THE END OF
INTEREST RATE GUARANTEE, FUNDS MAY BE WITHDRAWN WITHOUT SUCH
ADJUSTMENT IN A SINGLE SUM OR INSTALLMENTS OVER LESS THAN 5
YEARS.

PLAN TYPE C: POLICYHOLDER MAY WITHDRAW FUNDS BEFORE
EXPIRATION OF INTEREST RATE GUARANTEE IN A SINGLE SUM OR
INSTALLMENTS OVER LESS THAN 5 YEARS EITHER (A) WITHOUT
ADJUSTMENT TO REFLECT CHANGES IN INTEREST RATES OR ASSET
VALUES SINCE RECEIPT OF THE FUNDS BY THE INSURER, OR (B)
SUBJECT ONLY TO A FIXED SURRENDER CHARGE STIPULATED IN THE
CONTRACT AS A PERCENTAGE OF THE FUND.

6.  AN INSURER MAY ELECT TO VALUE
GUARANTEED INTEREST CONTRACTS WITH CASH SETTLEMENT OPTIONS
AND ANNUITIES WITH CASH SETTLEMENT OPTIONS ON EITHER AN
ISSUE YEAR BASIS OR ON A CHANGE IN FUND BASIS. GUARANTEED
INTEREST CONTRACTS WITH NO CASH SETTLEMENT OPTIONS AND OTHER
ANNUITIES WITH NO CASH SETTLEMENT OPTIONS MUST BE VALUED ON
AN ISSUE YEAR BASIS. AS USED IN THIS SUB-SUBPARAGRAPH, AN
ISSUE YEAR BASIS OF VALUATION REFERS TO A VALUATION BASIS
UNDER WHICH THE INTEREST RATE USED TO DETERMINE THE MINIMUM
VALUATION STANDARD FOR THE ENTIRE DURATION OF THE ANNUITY OR
GUARANTEED INTEREST CONTRACT IS THE CALENDAR YEAR VALUATION
INTEREST RATE FOR THE YEAR OF ISSUE OR YEAR OF PURCHASE OF
THE ANNUITY OR GUARANTEED INTEREST CONTRACT, AND THE CHANGE
IN FUND BASIS OF VALUATION REFERS TO A VALUATION BASIS UNDER
WHICH THE INTEREST RATE USED TO DETERMINE THE MINIMUM
VALUATION STANDARD APPLICABLE TO EACH CHANGE IN THE FUND