PARRIS N. GLENDENING, Governor

Ch. 36

(1)      (I) AFTER PREMIUMS HAVE BEEN PAID FOR 3 FULL YEARS, OR
FOR A LESSER PERIOD AS PROVIDED BY THE CONTRACT, THE VALUE OF EACH
PAID-UP NONFORFEITURE BENEFIT AND THE AMOUNT OF ANY CASH SURRENDER
VALUE, LOAN, OR OTHER OPTION GRANTED BY A CERTIFICATE MAY NOT BE LESS
THAN ANY EXCESS OF:

1.        THE RESERVE UNDER THE CERTIFICATE, DETERMINED
ON THE BASIS SPECIFIED IN THE CERTIFICATE; MINUS

2.        THE SUM OF ANY INDEBTEDNESS TO THE SOCIETY ON
THE CERTIFICATE, INCLUDING INTEREST DUE AND ACCRUED, AND A SURRENDER
CHARGE EQUAL TO 2.5% OF THE FACE AMOUNT OF THE CERTIFICATE.

(II)     FOR INSURANCE ON THE LIVES OF CHILDREN, THE FACE
AMOUNT OF THE CERTIFICATE IS THE ULTIMATE FACE AMOUNT OF THE
CERTIFICATE IF DEATH BENEFITS PROVIDED IN THE CERTIFICATE ARE GRADED.

(III)    SUBPARAGRAPH (I) OF THIS PARAGRAPH DOES NOT APPLY TO
CERTIFICATES FOR WHICH RESERVES ARE COMPUTED ON:

1.        THE COMMISSIONERS 1941 STANDARD ORDINARY
MORTALITY TABLE;

2.        THE 1941 STANDARD INDUSTRIAL TABLE;

3.        THE COMMISSIONERS 1958 STANDARD ORDINARY
MORTALITY TABLE; OR

4.        ANY MORTALITY TABLE THAT IS AUTHORIZED FOR USE
UNDER § 5-304(B) OF THIS ARTICLE FOR POLICIES ISSUED ON OR AFTER THE
OPERATIVE DATE OF § 15-309 [48A § 414(K-1)] OF THIS ARTICLE.

(2)      THE TERM OF ANY EXTENDED INSURANCE BENEFIT GRANTED,
INCLUDING ANY ACCOMPANYING PURE ENDOWMENT, MAY BE COMPUTED ON THE
RATES OF MORTALITY NOT GREATER THAN 130% OF THOSE SHOWN BY THE
MORTALITY TABLE SPECIFIED IN THE CERTIFICATE FOR THE COMPUTATION OF THE
RESERVE, IF:

(I)      THE CERTIFICATE IS ISSUED ON A SUBSTANDARD BASIS; OR

(II)     THE RESERVES FOR THE CERTIFICATE ARE COMPUTED ON
THE AMERICAN MEN ULTIMATE TABLE OF MORTALITY.

(C) SAME — RESERVES COMPUTED ON TABLES.

(1) EACH PAID-UP NONFORFEITURE BENEFIT AND THE AMOUNT OF
ANY CASH SURRENDER VALUE, LOAN, OR OTHER OPTION GRANTED UNDER A
CERTIFICATE MAY NOT BE LESS THAN THE CORRESPONDING AMOUNT
ASCERTAINED UNDER THE LAWS OF THE STATE THAT APPLY TO LIFE INSURERS
ISSUING POLICIES CONTAINING LIKE INSURANCE BENEFITS BASED ON THE SAME
TABLES.

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