3376

LAWS OF MARYLAND

Ch. 553

(6)  THE RECALCULATED NONFORFEITURE NET LEVEL
PREMIUM SHALL BE EQUAL TO THE RESULT OBTAINED BY DIVIDING
(I) BY (II) WHERE:

(I)  EQUALS THE SUM OF

1.  THE NONFORFEITURE NET LEVEL
PREMIUM APPLICABLE PRIOR TO THE CHANGE TIMES THE PRESENT
VALUE OF AN ANNUITY OF 1 PER ANNUM PAYABLE ON EACH
ANNIVERSARY OF THE POLICY ON OR SUBSEQUENT TO THE DATE OF
THE CHANGE ON WHICH A PREMIUM WOULD HAVE FALLEN DUE HAD THE
CHANGE NOT OCCURRED; AND

2.  THE PRESENT VALUE OF THE INCREASE
IN FUTURE GUARANTEED BENEFITS PROVIDED FOR BY THE POLICY,
AND

(II)  EQUALS THE PRESENT VALUE OF AN
ANNUITY OF 1 PER ANNUM PAYABLE ON EACH ANNIVERSARY OF THE
POLICY ON OR SUBSEQUENT TO THE DATE OF CHANGE ON WHICH A
PREMIUM FALLS DUE.

(7)  NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
SUBSECTION TO THE CONTRARY, IN THE CASE OF A POLICY ISSUED
ON A SUBSTANDARD BASIS WHICH PROVIDES REDUCED GRADED AMOUNTS
OF INSURANCE SO THAT, IN EACH POLICY YEAR, THAT POLICY HAS
THE SAME TABULAR MORTALITY COST AS AN OTHERWISE SIMILAR
POLICY ISSUED ON THE STANDARD BASIS WHICH PROVIDES HIGHER
UNIFORM AMOUNTS OF INSURANCE, ADJUSTED PREMIUMS AND PRESENT
VALUES FOR THE SUBSTANDARD POLICY MAY BE CALCULATED AS IF
THE POLICY WAS ISSUED TO PROVIDE THE HIGHER UNIFORM AMOUNTS
OF INSURANCE ON THE STANDARD BASIS.

(8)  ALL ADJUSTED PREMIUMS AND PRESENT VALUES
REFERRED TO IN THIS SECTION SHALL:

(I)  FOR ALL POLICIES OF ORDINARY INSURANCE
BE CALCULATED ON THE BASIS OF:

1.  THE COMMISSIONERS 1980 STANDARD
ORDINARY MORTALITY TABLE; OR

2.  AT THE ELECTION OF THE INSURER
FOR ANY ONE OR MORE SPECIFIED PLANS OF LIFE INSURANCE, THE
COMMISSIONERS 1980 STANDARD ORDINARY MORTALITY TABLE WITH
10 YEAR SELECT MORTALITY FACTORS;

(II)  FOR ALL POLICIES OF INDUSTRIAL
INSURANCE BE CALCULATED ON THE BASIS OF THE COMMISSIONERS
1961 STANDARD INDUSTRIAL MORTALITY TABLE; AND

(III)  FOR ALL POLICIES ISSUED IN A
PARTICULAR CALENDAR YEAR BE CALCULATED ON THE BASIS OF A
RATE OF INTEREST NOT EXCEEDING THE NONFORFEITURE INTEREST