Ch. 36

1995 LAWS OF MARYLAND

(II) A MATERIAL MISREPRESENTATION IN THE MEMBER'S
APPLICATION FOR MEMBERSHIP THAT IS DISCOVERED WITHIN THE CONTESTABLE
PERIOD.

(D)     OPTIONAL PROVISIONS.

A LIFE BENEFIT CERTIFICATE MAY CONTAIN THE FOLLOWING PROVISIONS:

(1)      A PROVISION THAT DEFAULT WILL NOT OCCUR IF PREMIUMS ARE
PAID UNDER AN ARRANGEMENT FOR AN AUTOMATIC PREMIUM LOAN AS SET
FORTH IN THE CERTIFICATE, IF:

(I)      THE SOCIETY'S LAWS SO ALLOW; OR

(II)     THE MEMBER ELECTS TO APPLY THE AUTOMATIC PREMIUM
LOAN BEFORE THE GRACE PERIOD OF AN OVERDUE PREMIUM EXPIRES;

(2)      A SUPPLEMENTAL PROVISION THAT RELATES TO BENEFITS IN THE
EVENT OF TEMPORARY OR PERMANENT DISABILITY OR HOSPITALIZATION AND A
PROVISION THAT GRANTS ADDITIONAL INSURANCE SPECIFICALLY AGAINST DEATH
BY ACCIDENT OR ACCIDENTAL MEANS MAY ALSO BE EXCEPTED FROM THE
INCONTESTABILITY PROVISION OF SUBSECTION (C)(8) OF THIS SECTION; AND

(3)      A PROVISION THAT, SUBJECT TO SUBSECTIONS (C)(8) AND (D)(2) OF
THIS SECTION, WITH REGARD TO STATEMENTS MADE TO PROCURE
REINSTATEMENT, THE SOCIETY HAS THE RIGHT TO CONTEST A REINSTATED
CERTIFICATE WITHIN 2 YEARS AFTER THE DATE OF REINSTATEMENT.

(E)     OMISSION OF PROVISIONS AUTHORIZED.

ANY PROVISION OR PART OF A PROVISION REQUIRED BY SUBSECTION (C) OF
THIS SECTION MAY BE OMITTED FROM A LIFE BENEFIT CERTIFICATE TO THE
EXTENT IT IS INAPPLICABLE BECAUSE OF THE PLAN OF INSURANCE OR BECAUSE
THE CERTIFICATE IS AN ANNUITY CERTIFICATE.

(F)      PROHIBITED PROVISIONS.

AFTER DECEMBER 31, 1963, A LIFE BENEFIT CERTIFICATE MAY NOT BE
DELIVERED OR ISSUED FOR DELIVERY IN THE STATE IF THE CERTIFICATE
CONTAINS IN SUBSTANCE ANY OF THE FOLLOWING PROVISIONS:

(1)      A PROVISION THAT LIMITS THE TIME WITHIN WHICH AN ACTION
MAY BE COMMENCED TO LESS THAN 3 YEARS AFTER THE CAUSE OF ACTION
ACCRUES;

(2)      A PROVISION IN WHICH THE CERTIFICATE PURPORTS TO BE ISSUED
OR TO TAKE EFFECT MORE THAN 6 MONTHS BEFORE THE ORIGINAL APPLICATION
FOR THE CERTIFICATE WAS MADE, EXCEPT IN CASE OF TRANSFER FROM ONE FORM
OF CERTIFICATE TO ANOTHER BY WHICH THE MEMBER IS TO RECEIVE CREDIT FOR
ANY RESERVE ACCUMULATION UNDER THE FORM OF CERTIFICATE FROM WHICH
THE TRANSFER IS MADE; OR

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