PARRIS N. GLENDENING, Governor                                   Ch. 36

(1)      FOR ACCIDENTAL DEATH BENEFITS IN OR SUPPLEMENTARY TO A
LIFE INSURANCE CERTIFICATE, THE APPLICABLE TABLE FOR THE MINIMUM
STANDARD FOR THE VALUATION OF THE CERTIFICATE IS:

(I)       THE INTERCOMPANY DOUBLE INDEMNITY MORTALITY TABLE;
OR

(II)     THE 1959 ACCIDENTAL DEATH BENEFITS TABLE.

(2)      THE TABLE USED UNDER THIS SUBSECTION SHALL BE COMBINED
WITH A MORTALITY TABLE ALLOWED FOR CALCULATING THE RESERVES FOR LIFE
INSURANCE CERTIFICATES.

(L) SAME — SAME — NONCANCELLABLE ACCIDENT AND HEALTH BENEFITS.

FOR NONCANCELLABLE ACCIDENT AND HEALTH BENEFITS, THE APPLICABLE
TABLE FOR THE MINIMUM STANDARD FOR THE VALUATION OF THE CERTIFICATE
IS:

(1)      THE CLASS (3) DISABILITY TABLE (1926) WITH CONFERENCE
MODIFICATIONS; OR

(2)      WITH THE CONSENT OF THE COMMISSIONER, TABLES BASED ON THE
SOCIETY'S OWN EXPERIENCE.

(M) OTHER STANDARDS FOR VALUATION.

THE COMMISSIONER MAY:

(1)      ACCEPT OTHER STANDARDS FOR VALUATION IF THE
COMMISSIONER FINDS THAT THE RESERVES PRODUCED BY THOSE OTHER
STANDARDS WILL NOT BE LESS IN THE AGGREGATE THAN RESERVES COMPUTED IN
ACCORDANCE WITH THE MINIMUM VALUATION STANDARD PRESCRIBED IN THIS
SECTION;

(2)      VARY THE STANDARDS OF MORTALITY APPLICABLE TO ALL
CERTIFICATES OF INSURANCE ON SUBSTANDARD LIVES OR OTHER
EXTRA-HAZARDOUS LIVES BY ANY SOCIETY AUTHORIZED TO DO BUSINESS IN THE
STATE; AND

(3)      REQUIRE ADDITIONAL RESERVES AS NECESSARY ON ACCOUNT OF
THE CERTIFICATES WHENEVER THE MORTALITY EXPERIENCE UNDER ALL
CERTIFICATES VALUED ON THE SAME MORTALITY TABLE EXCEEDS THE EXPECTED
MORTALITY ACCORDING TO THE TABLE FOR A PERIOD OF 3 CONSECUTIVE YEARS.

(N) EXCESS RESERVES.

(1) WITH THE CONSENT OF THE INSURANCE SUPERVISORY OFFICIAL OF
THE STATE OF DOMICILE OF THE SOCIETY, AND SUBJECT TO ANY CONDITIONS THE
OFFICIAL MAY IMPOSE, A SOCIETY MAY ESTABLISH AND MAINTAIN RESERVES ON
ITS CERTIFICATES THAT EXCEED THE RESERVES REQUIRED UNDER THIS SECTION.

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