Ch. 582

LAWS OF MARYLAND

(b) If the beneficiary, assignee, or other payee under any
contract made in violation of this section receives from the
insurer any benefits thereunder accruing upon the death,
disablement, or injury of the individual insured, the individual
insured or his executor or administrator, as the case may be, may
maintain an action to recover such benefits from the person so
receiving them.

(c) (1) "Insurable interest" with reference to personal
insurance includes only interests as follows:

(1) (I) In the case of individuals related closely by
blood or by law, a substantial interest engendered by love and
affection.

(2) (I) (II) 1. In the case of other persons, a
lawful and substantial economic interest in having the life,
health, or bodily safety of the individual insured continue, as
distinguished from an interest which would arise only by, or
would be enhanced in value- by, the death, disablement or injury
of the individual insured.

(II) 2. IN THE CASE OF EMPLOYEES OF PUBLIC AND
PRIVATE CORPORATIONS, WITH RESPECT TO WHOM THE CORPORATE EMPLOYER
OR AN EMPLOYER SPONSORED TRUST FOR THE BENEFIT OF EMPLOYEES IS
THE BENEFICIARY UNDER AN INSURANCE CONTRACT, A LAWFUL AND
SUBSTANTIAL ECONOMIC INTEREST EXISTS IN:

1. A. KEY EMPLOYEES; AND

2. B. OTHER NONKEY EMPLOYEES WHO HAVE
BEEN EMPLOYED BY THE A PUBLIC CORPORATION FOR 12 CONSECUTIVE
MONTHS WHO CONSENT IN WRITING PURSUANT TO SUBSECTION (A) OF § 371
OF THIS ARTICLE , PROVIDED THAT THE AMOUNT OF INSURANCE COVERAGE
ON THE NONKEY EMPLOYEES SHALL BE LIMITED TO AN AMOUNT
COMMENSURATE WITH EMPLOYER-PROVIDED BENEFITS TO THOSE EMPLOYEES.

3. FOR THE PURPOSES OF THIS PARAGRAPH,
"PUBLIC CORPORATION" MEANS A CORPORATION WHERE STOCK IS TRADED ON
A RECOGNIZED STOCK EXCHANGE OR PURSUANT TO THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS AUTOMATED QUOTATION (NASDAQ)
SYSTEMS.

(3) (III) An individual heretofore or hereafter party
to a contract or option for the purchase or sale of an interest
in a business partnership or firm, or of shares of stock of a
closed corporation or of an interest in such shares, has an
insurable interest in the life of each individual party to such
contract and for the purposes of such contract only, in addition
to any insurable interest which may otherwise exist as to the
life of such individual.

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