Ch. 36                                     1995 LAWS OF MARYLAND

A SOCIETY MAY PROVIDE FOR:

(1)     THE DESIGNATION AND CHANGING OF DESIGNATION OF
BENEFICIARIES IN CERTIFICATES;

(2)     THE REGULATION OF CERTIFICATES; AND

(3)     ALL RIGHTS, OBLIGATIONS, AND LIABILITIES INCIDENT TO THE
CERTIFICATES.

REVISOR'S NOTE: Subsection (a) of this section is new language added based on
the language describing children in the first sentence of former Art. 48A, §
325(a).

Subsections (b) through (e) of this section are new language derived without
substantive change from former Art. 48A, § 325.

In subsection (c)(3) of this section, the word "participate" is substituted for
the former words "have a voice" for clarity.

In subsection (e)(2) of this section, the former reference to the "government"
and "control" of certificates is deleted as redundant in light of the broad
reference to the "regulation" of certificates.

Defined terms: "Insurance" § 1-101
"Society" § 8-401

8-429. NONFORFEITURE BENEFITS, CASH SURRENDER VALUES, CERTIFICATE LOANS,
AND OTHER OPTIONS.

(A)     AUTHORIZED AND REQUIRED OPTIONS.

(1)     A SOCIETY MAY GRANT PAID-UP NONFORFEITURE BENEFITS, CASH
SURRENDER VALUES, CERTIFICATE LOANS, AND OTHER OPTIONS AS ITS LAWS
ALLOW.

(2)      (I) A SOCIETY SHALL GRANT AT LEAST ONE PAID-UP
NONFORFEITURE BENEFIT FOR CERTIFICATES ISSUED BY THE SOCIETY ON OR
AFTER DECEMBER 31, 1963.

(II) SUBPARAGRAPH (I) OF THIS PARAGRAPH DOES NOT APPLY TO:

1.       PURE ENDOWMENT CONTRACTS;

2.       ANNUITY CONTRACTS;

3.       REVERSIONARY ANNUITY CONTRACTS;

4.       REDUCING TERM INSURANCE CONTRACTS; OR

5.       CONTRACTS OF TERM INSURANCE OF UNIFORM AMOUNT
OF 15 YEARS OR LESS THAT EXPIRE BEFORE AGE 66.

(B)     VALUATION OF OPTIONS — RESERVES NOT COMPUTED ON TABLES.

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