Ch. 36

1995 LAWS OF MARYLAND

(II)     AN INDIVIDUAL PARTY TO A CONTRACT OR OPTION
DESCRIBED IN SUBPARAGRAPH (I) OF THIS PARAGRAPH HAS AN INSURABLE
INTEREST IN THE LIFE OF EACH INDIVIDUAL PARTY TO THE CONTRACT OR OPTION.

(III)   THE INSURABLE INTEREST SPECIFIED IN SUBPARAGRAPH (II)
OF THIS PARAGRAPH:

1.        IS ONLY FOR THE PURPOSES OF THE CONTRACT OR
OPTION; AND

2.        IS IN ADDITION TO ANY OTHER INSURABLE INTEREST
THAT MAY EXIST ON THE LIFE OF AN INDIVIDUAL PARTY TO THE CONTRACT OR
OPTION.

(C)     INSTITUTIONS AND TRUSTS.

(1)      THIS SUBSECTION APPLIES ONLY TO A CHARITABLE, BENEVOLENT,
EDUCATIONAL, GOVERNMENTAL, OR RELIGIOUS INSTITUTION THAT IS DESCRIBED
IN § 170(B)(1)(A) OR § 501(C)(3) OF THE INTERNAL REVENUE CODE, OR A TRUST FOR
THE BENEFIT OF THAT INSTITUTION THAT IS QUALIFIED AS A POOLED INCOME
FUND UNDER § 642(C)(5) OR A CHARITABLE REMAINDER TRUST UNDER § 664 OF THE
INTERNAL REVENUE CODE.

(2)      AN INSTITUTION OR TRUST DESCRIBED IN PARAGRAPH (1) OF THIS
SUBSECTION MAY PROCURE OR CAUSE TO BE PROCURED AN INSURANCE POLICY ON
THE LIFE OF AN INDIVIDUAL IF:

(I)      THE INSTITUTION OR TRUST IS DESIGNATED IRREVOCABLY AS
THE BENEFICIARY OF THE INSURANCE POLICY; AND

(II)     THE APPLICATION FOR THE INSURANCE POLICY IS SIGNED BY
THE INDIVIDUAL WHOSE LIFE IS TO BE INSURED OR THE INDIVIDUAL'S LEGAL
GUARDIAN.

(3)      THIS SUBSECTION DOES NOT PROHIBIT THE INSTITUTION OR
INDIVIDUAL FROM BEING THE BENEFICIARY OR OWNER OF THE POLICY OR PAYING
THE PREMIUMS FOR THE POLICY.

(D)     ACTION TO RECOVER BENEFITS.

IF A BENEFICIARY, ASSIGNEE, OR OTHER PAYEE UNDER AN INSURANCE
CONTRACT MADE IN VIOLATION OF THIS SECTION RECEIVES FROM THE INSURER
BENEFITS THAT ACCRUE ON THE INSURED'S DEATH, DISABLEMENT, OR INJURY, THE
INSURED OR THE INSURED'S EXECUTOR OR ADMINISTRATOR MAY BRING AN
ACTION TO RECOVER BENEFITS FROM THE PAYEE THAT RECEIVES THEM.

(E)     RETALIATORY ACTION.

NOTWITHSTANDING SUBSECTION (B)(4) OF THIS SECTION, A CORPORATE
EMPLOYER WITH AN INSURABLE INTEREST IN EMPLOYEES DESCRIBED IN
SUBSECTION (B)(3) OR (4) OF THIS SECTION MAY NOT RETALIATE AGAINST AN
EMPLOYEE WHO REFUSES TO CONSENT TO AN INSURANCE CONTRACT BEING
PURCHASED IN THE EMPLOYEE'S NAME.

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