Ch. 36

1995 LAWS OF MARYLAND

(2) THE CONTRACTUAL RIGHTS OF ANY INSURED MEMBER MAY NOT
BE AFFECTED BY A SOCIETY ESTABLISHING AND MAINTAINING RESERVES UNDER
PARAGRAPH (1) OF THIS SUBSECTION.

(O) VALUATION STANDARDS AUTHORIZED BY TITLE 5, SUBTITLE 3.

INSTEAD OF THE PROVISIONS SET FORTH IN THIS SECTION, WITH THE
APPROVAL OF THE COMMISSIONER, A SOCIETY MAY USE THE STANDARDS FOR
VALUATION AUTHORIZED BY §§ 5-303 THROUGH 5-312 OF THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 339.

In subsection (a)(2) of this section, the reference to filing the valuation "not
later than May 1" is substituted for the former reference to extending the
filing "for not more than two (2) calendar months" for clarity.

In subsection (a)(3)(ii) of this section, the former phrase "in practice" is
deleted as surplusage.

Defined terms: "Annuity" § 1-101
"Commissioner" § 1-101
"Insurance" § 1-101
"Life insurance" § 1-101
"Premium" § 1-101
"Society" § 8-401
"State" § 1-101

8-446. IMPAIRMENT OF RESERVES.

EACH SOCIETY SHALL PROVIDE IN ITS CONSTITUTION OR LAWS THAT:

(1)      IF THE RESERVES OF THE SOCIETY AS TO ALL OR ANY CLASS OF
CERTIFICATES BECOME IMPAIRED, THE BOARD OF DIRECTORS OR EQUIVALENT
BODY OF THE SOCIETY MAY REQUIRE THAT EACH SOCIETY MEMBER PAY THE
AMOUNT OF THE MEMBER'S EQUITABLE PROPORTION OF THE DEFICIENCY AS
DETERMINED BY THE BOARD OF DIRECTORS OR EQUIVALENT BODY AND
APPROVED BY THE COMMISSIONER OF THE DOMICILIARY STATE; AND

(2)      IF THE MEMBER DOES NOT PAY THE MEMBER'S SHARE OF THE
DEFICIENCY, THAT SHARE IS AN INDEBTEDNESS AGAINST THE MEMBER'S
CERTIFICATE AND IS SUBJECT TO INTEREST NOT EXCEEDING 5% PER YEAR
COMPOUNDED ANNUALLY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 323.

In item (1) of this section, the reference to an "equivalent" body is substituted
for the former reference to a "corresponding" body for clarity and consistency
throughout this subtitle.

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

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