3364

LAWS OF MARYLAND

Ch. 553

CASH SETTLEMENT OPTIONS, VALUED ON A CHANGE IN FUND BASIS,
EXCEPT AS STATED IN SUBPARAGRAPH (II) ABOVE, THE AVERAGE
OVER A PERIOD OF 12 MONTHS, ENDING ON JUNE 30 OF THE
CALENDAR YEAR OF THE CHANGE IN THE FUND, OF MOODY'S
CORPORATE BOND YIELD AVERAGE - MONTHLY AVERAGE CORPORATES,
AS PUBLISHED BY MOODY'S INVESTORS SERVICE, INC.

(5) IN THE EVENT THAT MOODY'S CORPORATE BOND
YIELD AVERAGE - MONTHLY AVERAGE CORPORATES IS NO LONGER
PUBLISHED BY MOODY'S INVESTORS SERVICE, INC., OR IN THE
EVENT THAT THE NATIONAL ASSOCIATION OF INSURANCE
COMMISSIONERS DETERMINES THAT MOODY'S CORPORATE BOND YIELD
AVERAGE - MONTHLY AVERAGE CORPORATES AS PUBLISHED BY MOODY'S
INVESTORS SERVICE, INC., IS NO LONGER APPROPRIATE FOR THE
DETERMINATION OF THE REFERENCE INTEREST RATE, THEN AN
ALTERNATIVE METHOD FOR DETERMINATION OF THE REFERENCE
INTEREST RATE, WHICH IS ADOPTED BY THE NATIONAL ASSOCIATION
OF INSURANCE COMMISSIONERS AND APPROVED BY REGULATION
PROMULGATED BY THE COMMISSIONER, MAY SHALL BE SUBSTITUTED.

(b-1) 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.

PROVIDED THAT FOR ANY LIFE INSURANCE POLICY ISSUED ON
OR AFTER JANUARY 1, 1986 FOR WHICH THE CONTRACT PREMIUM IN
THE FIRST POLICY YEAR EXCEEDS THAT OF THE SECOND YEAR AND
FOR WHICH NO COMPARABLE ADDITIONAL BENEFIT IS PROVIDED IN