3374

LAWS OF MARYLAND

Ch. 553

After December 31, 1963, any insurer may file with the
Commissioner a written notice of its election to comply with
the provisions of this subsection after a specified date
before January 1, 1968. After the filing of notice, then
upon the specified date (which shall be the operative date
of this subsection for the insurer), this subsection shall
become operative with respect to the industrial policies
thereafter issued by the insurer. If an insurer does not
make an election, the operative date of this subsection for
the insurer shall be January 1, 1968.

(K-l) (1) THIS SUBSECTION SHALL APPLY TO ALL POLICIES
ISSUED ON OR AFTER THE OPERATIVE DATE OF THIS SUBSECTION AS
DEFINED HEREIN. EXCEPT AS PROVIDED IN SUBPARAGRAPH (7) OF
THIS SUBSECTION, THE ADJUSTED PREMIUMS FOR ANY POLICY SHALL
BE CALCULATED ON AN ANNUAL BASIS AND SHALL BE THE UNIFORM
PERCENTAGE OF THE RESPECTIVE PREMIUMS SPECIFIED IN THE
POLICY FOR EACH POLICY YEAR, EXCLUDING AMOUNTS PAYABLE AS
EXTRA PREMIUMS TO COVER IMPAIRMENTS OR SPECIAL HAZARDS, AND
ALSO EXCLUDING ANY UNIFORM ANNUAL CONTRACT CHARGE OR POLICY
FEE SPECIFIED IN THE POLICY IN A STATEMENT OF THE METHOD TO
BE USED IN CALCULATING THE CASH SURRENDER VALUES AND PAID-UP
NONFORFEITURE BENEFITS, SO THAT THE PRESENT VALUE, AT THE
DATE OF ISSUE OF THE POLICY, OF ALL ADJUSTED PREMIUMS SHALL
BE EQUAL TO THE SUM OF:

(I)  THE PRESENT VALUE OF THE FUTURE
GUARANTEED BENEFITS PROVIDED FOR BY THE POLICY;

(II)  1 PERCENT OF EITHER THE AMOUNT OF
INSURANCE, IF THE INSURANCE BE UNIFORM IN AMOUNT, OR THE
AVERAGE AMOUNT OF INSURANCE AT THE BEGINNING OF EACH OF THE
FIRST 10 POLICY YEARS; AND

(III)  125 PERCENT OF THE NONFORFEITURE NET
LEVEL PREMIUM AS HEREAFTER DEFINED.

(IV)  IN APPLYING THE PERCENTAGE SPECIFIED
IN SUBPARAGRAPH (III), NO NONFORFEITURE NET LEVEL PREMIUM
SHALL BE DEEMED TO EXCEED 4 PERCENT OF EITHER THE AMOUNT OF
INSURANCE, IF THE INSURANCE IS UNIFORM IN AMOUNT, OR THE
AVERAGE AMOUNT OF INSURANCE AT THE BEGINNING OF EACH OF THE
FIRST 10 POLICY YEARS. THE DATE OF ISSUE OF A POLICY FOR
THE PURPOSE OF THIS SUBSECTION SHALL BE THE DATE WHEN THE
RATED AGE OF THE INSURED IS DETERMINED.

(2) THE NONFORFEITURE NET LEVEL PREMIUM SHALL BE
EQUAL TO THE PRESENT VALUE, AT THE DATE OF ISSUE OF THE
POLICY, OF THE GUARANTEED BENEFITS PROVIDED FOR BY THE
POLICY DIVIDED BY THE PRESENT VALUE, AT THE DATE OF ISSUE OF
THE POLICY, OF AN ANNUITY OF 1 PER ANNUM PAYABLE ON THE DATE
OF ISSUE OF THE POLICY AND ON EACH ANNIVERSARY ON WHICH A
PREMIUM FALLS DUE.