|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROBERT L. EHRLICH, JR., Governor
|
|
|
|
|
|
Ch. 498
|
|
|
|
|
|
|
|
|
|
|
|
|
(D) (1) DURING THE PERIOD THAT A CONTRACT PROVIDES FOR
SUBSTANTIVE PARTICIPATION IN AN EQUITY INDEX BENEFIT, THE INSURER MAY
INCREASE THE 125 BASIS POINTS UNDER SUBSECTION (C)(1)(II) (C)(2)(II) OF THIS
SECTION UP TO AN ADDITIONAL 100 BASIS POINTS TO REFLECT THE VALUE OF THE
EQUITY INDEX BENEFIT.
(2) ON THE ISSUE DATE OF THE CONTRACT, OR AT AND ON EACH
REDEMPTION REDETERMINATION DATE, THE PRESENT VALUE OF THE ADDITIONAL
REDUCTION MAY NOT EXCEED THE MARKET VALUE OF THE EQUITY INDEX BENEFIT.
(3) (I) THE COMMISSIONER MAY REQUIRE THE INSURER TO
DEMONSTRATE THAT THE PRESENT VALUE OF THE ADDITIONAL REDUCTION DOES
NOT EXCEED THE MARKET VALUE OF THE EQUITY INDEX BENEFIT.
(II) IF THE COMMISSIONER FINDS THAT THE DEMONSTRATION
UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IS INADEQUATE, THE
COMMISSIONER MAY DISALLOW OR LIMIT THE ADDITIONAL REDUCTION.
(E) (1) THE COMMISSIONER MAY ADOPT REGULATIONS TO IMPLEMENT THE
PROVISIONS OF THIS SECTION.
(2) THE REGULATIONS UNDER PARAGRAPH (1) OF THIS SUBSECTION
MAY PROVIDE FOR:
(I) ADJUSTMENTS TO THE CALCULATION OF THE MINIMUM
NONFORFEITURE AMOUNT FOR CONTRACTS THAT PROVIDE SUBSTANTIVE
PARTICIPATION IN AN EQUITY INDEX BENEFIT; AND
(II) ADJUSTMENTS FOR OTHER CONTRACTS AS DETERMINED BY
THE COMMISSIONER
16-510.
A CONTRACT UNDER THIS SUBTITLE THAT DOES NOT PROVIDE CASH
SURRENDER BENEFITS OR DEATH BENEFITS AT LEAST EQUAL TO THE MINIMUM
NONFORFEITURE AMOUNT BEFORE THE START OF AN ANNUITY PAYMENT SHALL
INCLUDE A STATEMENT LOCATED IN A PROMINENT PLACE IN THE CONTRACT
STATING THAT CASH SURRENDER OR DEATH BENEFITS ARE NOT PROVIDED UNDER
THE CONTRACT.
[16-510.] 16-511.
This subtitle is the Maryland Standard Nonforfeiture Law for Individual
Deferred Annuities AND SHALL BE INTERPRETED IN A MANNER CONSISTENT WITH
THE STANDARD NONFORFEITURE MODEL LAW FOR INDIVIDUAL DEFERRED
ANNUITIES PUBLISHED BY THE NATIONAL ASSOCIATION OF INSURANCE
COMMISSIONERS.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:
|
|
|
|
|
|
|
|
|
|
- 2909 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
