3378

LAWS OF MARYLAND

Ch. 553

(10)  THE NONFORFEITURE INTEREST RATE PER ANNUM
FOR ANY POLICY ISSUED IN A PARTICULAR CALENDAR YEAR SHALL BE
EQUAL TO 125 PERCENT OF THE CALENDAR YEAR STATUTORY
VALUATION INTEREST RATE FOR THE POLICY AS DEFINED IN THE
STANDARD VALUATION LAW, ROUNDED TO THE NEARER 1/4 PERCENT.

(11)  NOTWITHSTANDING ANY OTHER PROVISION IN THIS
CODE TO THE CONTRARY, ANY REFILING OF NONFORFEITURE VALUES
OR THEIR METHODS OF COMPUTATION FOR ANY PREVIOUSLY APPROVED
POLICY FORM WHICH INVOLVES ONLY A CHANGE IN THE INTEREST
RATE OR MORTALITY TABLE USED TO COMPUTE NONFORFEITURE VALUES
SHALL NOT REQUIRE REFILING OF ANY OTHER PROVISIONS OF THAT
POLICY FORM.

(12)  AFTER THE EFFECTIVE DATE OF THIS
SUBSECTION, 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 AND BEFORE JANUARY
1, 1989, WHICH SHALL BE THE OPERATIVE DATE OF THIS
SUBSECTION FOR THE INSURER. IF AN INSURER MAKES NO SUCH
ELECTION, THE OPERATIVE DATE OF THIS SUBSECTION FOR THAT
INSURER SHALL BE JANUARY 1, 1989.

(K-2) IN THE CASE OF ANY PLAN OF LIFE INSURANCE WHICH
PROVIDES FOR FUTURE PREMIUM DETERMINATION, THE AMOUNTS OF
WHICH ARE TO BE DETERMINED BY THE INSURANCE COMPANY BASED ON
ESTIMATES OF FUTURE EXPERIENCE, OR IN THE CASE OF ANY PLAN
OF LIFE INSURANCE WHICH IS OF SUCH A NATURE THAT MINIMUM
VALUES CANNOT BE DETERMINED BY THE METHODS DESCRIBED IN
SUBSECTIONS (B) THROUGH (K-1) HEREIN, THEN:

(1)  THE COMMISSIONER MUST BE SATISFIED THAT THE
BENEFITS PROVIDED UNDER THE PLAN ARE SUBSTANTIALLY AS
FAVORABLE TO POLICYHOLDERS AND INSUREDS AS THE MINIMUM
BENEFITS OTHERWISE REQUIRED BY SUBSECTIONS (B) THROUGH
(K-l);

(2)  THE COMMISSIONER MUST BE SATISFIED THAT THE
BENEFITS AND THE PATTERN OF PREMIUMS OF THAT PLAN DO NOT
MISLEAD PROSPECTIVE POLICYHOLDERS OR INSUREDS; AND

(3)  THE CASH SURRENDER VALUES AND PAID-UP
NONFORFEITURE BENEFITS PROVIDED BY THE PLAN MUST NOT BE LESS
THAN THE MINIMUM VALUES AND BENEFITS REQUIRED FOR THE PLAN
COMPUTED BY A METHOD CONSISTENT WITH THE PRINCIPLES OF THIS
STANDARD NONFORFEITURE LAW FOR LIFE INSURANCE, AS DETERMINED
BY REGULATIONS PROMULGATED BY THE COMMISSIONER.

(1) Any cash surrender value and any paid-up
nonforfeiture benefit, available under the policy in the
event of default in a premium payment due at any time other
than on the policy anniversary, shall be calculated with
allowance for the lapse of time and the payment of
fractional premiums beyond the last preceding policy