Ch. 300                                          LAWS OF MARYLAND

policies and contracts, other than annuity and pure endowment
contracts, issued on or after July 1, 1978; 4 percent interest
for such policies issued prior to July 1, 1980, and 4 1/2 percent
interest for policies issued on or after July 1, 1980, and the
following tables:

(vii) For group life insurance, life insurance
issued on the substandard basis, LONG-TERM HOME HEALTH CARE AND
LONG-TERM CARE IN A NURSING HOME OR OTHER RELATED INSTITUTION,
and other special benefits — such tables as may be approved by
the Commissioner.

(b-1) Except as otherwise provided in paragraphs
(b-2) and (e), reserves according to the Commissioners reserve
valuation method, for the life and endowment insurance benefits
of policies providing for a uniform amount of insurance and
requiring the payment of uniform premiums, shall be the excess,
if any, of the present value, at the date of valuation, of such
future guaranteed benefits provided for by such policies, over
the then present value of any future modified net premiums
therefor. The modified net premiums for any such policy shall be
such uniform percentage of the respective contract premiums for
such benefits that the present value, at the date of issue of the
policy, of all such modified net premiums shall be equal to the
sum of the then present value of such benefits provided for by
the policy and the excess of (A) over (B), as follows:

(B) A net one-year term premium for such
benefits provided for in the first policy year.

Provided that for any life insurance policy issued on or
after January 1, 1986 for which the contract premium in the first
policy year exceeds that of the second year and for which no
comparable additional benefit is provided in the first year for
the excess premium, and which provides an endowment benefit or a
cash surrender value, or a combination, in an amount greater than
the excess premium, the reserve according to the Commissioners
reserve valuation method as of any policy anniversary occurring
on or before the assumed ending date defined as the first policy
anniversary on which the sum of any endowment benefit and any
cash surrender value then available is greater than the excess
premium shall, except as otherwise provided in subsection (e), be
the greater of the reserve as of the policy anniversary
calculated as described in the preceding paragraph or the reserve
as of such policy anniversary calculated as described in that
paragraph, but with (i) the amount defined in subparagraph (a) of
that paragraph being reduced by 15 percent of the amount of the
excess first year premium, (ii) all present values of benefits
and premiums being determined without reference to premiums or
benefits provided for by the policy after the assumed ending
date, (iii) the policy being assumed to mature on that date as an
endowment, and (iv) the cash surrender value provided on that
date being considered as an endowment benefit. In making the

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