Ch. 36

1995 LAWS OF MARYLAND

(1)      IN THIS SUBSECTION, "GUARANTEED BENEFITS" MEANS FUTURE
GUARANTEED LIFE INSURANCE AND ENDOWMENT BENEFITS.

(2)      FOR THE LIFE INSURANCE AND ENDOWMENT BENEFITS OF A
CERTIFICATE THAT PROVIDES FOR A UNIFORM AMOUNT OF INSURANCE AND
REQUIRES THE PAYMENT OF UNIFORM PREMIUMS, THE RESERVE ACCORDING TO
THE COMMISSIONERS' RESERVE VALUATION METHOD SHALL BE THE AMOUNT, IF
ANY, THAT THE PRESENT VALUE, AT THE DATE OF VALUATION, OF THE
GUARANTEED BENEFITS UNDER THE CERTIFICATE EXCEEDS THE PRESENT VALUE,
AT THE DATE OF VALUATION, OF ANY FUTURE MODIFIED NET PREMIUMS FOR THE
CERTIFICATE, AS DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION.

(3)      (I) FOR PURPOSES OF THIS SUBSECTION, THE MODIFIED NET
PREMIUMS FOR A CERTIFICATE EQUAL A UNIFORM PERCENTAGE OF THE
RESPECTIVE CONTRACT PREMIUMS FOR THE GUARANTEED BENEFITS UNDER THE
CERTIFICATE CALCULATED SO THAT THE PRESENT VALUE, AT THE DATE OF ISSUE
OF THE CERTIFICATE, OF THE SUM OF ALL MODIFIED NET PREMIUMS EQUALS THE
SUM OF:

1.    THE PRESENT VALUE, AT THE DATE OF ISSUE, OF THE
GUARANTEED BENEFITS UNDER THE CERTIFICATE; AND

2.        THE AMOUNT BY WHICH THE NET LEVEL ANNUAL
PREMIUM DETERMINED UNDER PARAGRAPH (3) OF THIS SUBSECTION EXCEEDS A
NET 1-YEAR TERM PREMIUM FOR THE GUARANTEED BENEFITS PROVIDED FOR IN
THE FIRST CERTIFICATE YEAR.

(II) 1. EXCEPT AS PROVIDED IN SUB-SUBPARAGRAPH (2) OF
THIS PARAGRAPH, THE NET LEVEL ANNUAL PREMIUM TO BE USED IN THE
CALCULATION IN THIS PARAGRAPH EQUALS A FRACTION:

A.       THE NUMERATOR OF WHICH IS THE PRESENT VALUE, AT
THE DATE OF ISSUE, OF THE GUARANTEED BENEFITS PROVIDED FOR AFTER THE
FIRST CERTIFICATE YEAR; AND

B.       THE DENOMINATOR OF WHICH IS THE PRESENT VALUE,
AT THE DATE OF ISSUE, OF AN ANNUITY OF ONE PER YEAR PAYABLE ON THE FIRST
AND EACH SUBSEQUENT ANNIVERSARY OF THE CERTIFICATE ON WHICH A
PREMIUM FALLS DUE.

2. THE NET LEVEL ANNUAL PREMIUM DETERMINED UNDER
THIS SUBPARAGRAPH MAY NOT EXCEED THE NET LEVEL ANNUAL PREMIUM ON THE
19-YEAR PREMIUM WHOLE LIFE PLAN FOR INSURANCE OF THE SAME AMOUNT AT
AN AGE 1 YEAR HIGHER THAN THE AGE AT ISSUE OF THE CERTIFICATE FOR WHICH
THE RESERVE IS CALCULATED UNDER THIS SUBSECTION.

(C) SAME — OTHER BENEFITS.

(1) THIS SUBSECTION APPLIES TO:

(I) LIFE INSURANCE BENEFITS THAT PROVIDE FOR VARYING
AMOUNTS OF BENEFITS OR REQUIRE THE PAYMENT OF VARYING PREMIUMS;

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