|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ROBERT L. EHRLICH, JR., Governor
|
|
|
|
|
|
H.B.1192
|
|
|
|
|
|
|
|
|
|
|
|
|
(2002 Replacement Volume and 2004 Supplement)
BY adding to
Article - Insurance
Section 16-504(b), (c), (d), and (e) and 16-510
Annotated Code of Maryland
(2002 Replacement Volume and 2004 Supplement)
BY repealing and reenacting, with amendments,
Chapter 82 of the Acts of the General Assembly of 2003
Section 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
16-503.
(b) Each annuity contract shall contain a provision that when payment of
considerations under the annuity contract stops OR ON THE WRITTEN REQUEST OF
THE CONTRACT OWNER, the insurer will grant a paid-up annuity benefit on a plan
stipulated in the annuity contract in compliance with §§ 16-505 through 16-509 of
this subtitle.
(c) (1) Each annuity contract shall contain a provision that if the annuity
contract provides for a lump-sum settlement at maturity or at any other time, on
surrender of the annuity contract on or before the start of annuity payments, the
insurer will pay a cash surrender benefit in accordance with §§ 16-505, 16-506,
16-508, and 16-509 of this subtitle instead of a paid-up annuity benefit.
(2) (I) The annuity contract shall MAY state that the insurer shall
reserve the right to defer the payment of the cash surrender value for up to 6 months
after demand for payment with surrender of the annuity contract.
(II) 1. BEFORE MAKING A DEFERMENT UNDER SUBPARAGRAPH
(I) OF THIS PARAGRAPH, THE INSURER SHALL MAKE A WRITTEN REQUEST TO THE
COMMISSIONER TO DEFER THE PAYMENT OF THE CASH SURRENDER VALUE FOR UP
TO 6 MONTHS AFTER A DEMAND FOR PAYMENT WITH SURRENDER OF THE ANNUITY
CONTRACT MAKE THE DEFERMENT UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH.
2. THE REQUEST UNDER SUBSUBPARAGRAPH 1 OF THIS
SUBPARAGRAPH, SHALL CONTAIN A STATEMENT AS TO ADDRESS THE NECESSITY OF
THE DEFERRAL AND THE EFFECT THE DEFERRAL WILL HAVE ON THE EQUITABILITY
TO ALL POLICYHOLDERS OF THE DEFERRAL.
(III) AFTER RECEIVING WRITTEN APPROVAL FROM THE
COMMISSIONER ON THE REQUEST MADE UNDER SUBPARAGRAPH (II)2 OF THIS
PARAGRAPH, THE INSURER MAY RESERVE THE RIGHT TO DEFER THE PAYMENT OF
THE CASH SURRENDER VALUE FOR UP TO 6 MONTHS AFTER DEMAND FOR PAYMENT
WITH SURRENDER OF THE ANNUITY CONTRACT.
- 4367 -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
