WILLIAM DONALD SCHAEFER, Governor

Ch. 582

CHAPTER 582

(Senate Bill 483)

AN ACT concerning

Life Insurance -
Insurable Interest of Corporations in Employees

FOR the purpose of permitting a corporation certain corporations
to purchase a life insurance policy on certain employees;
and defining a certain term; requiring a corporation that
purchases a life insurance policy on an employee to provide
written notice of the purchase to the employee obtain
written consent from the employee; and prohibiting any
corporation from taking retaliatory action against an
employee who refuses to consent to the purchase of the
policy.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 366 and 371(a)

Annotated Code of Maryland

(1986 Replacement Volume and 1988 Supplement)

BY repealing and reenacting, without amendments,

Article 48A - Insurance Code

Section 371(a)

Annotated Code of Maryland

(1986 Replacement Volume and 1988 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

366.

(a) Any individual of competent legal capacity may procure
or effect an insurance contract upon his own life or body for the
benefit of any person. But no person shall procure or cause, to
be procured any insurance contract upon the life or body of
another individual unless the benefits under such contract are
payable to the individual insured or his personal
representatives, or to a person having, at the time when such
contract was made, an insurable interest in the individual
insured.

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