PARRIS N. GLENDENING, Governor

Ch. 36

In subsections (a)(2) and (b)(2) of this section, references to "proceeding" are
substituted for the former references to an "action" and an "action or
proceeding" for consistency.

Also in subsection (a)(2) of this section, the reference to a "complete" copy is
substituted for the former reference to a "true" copy for clarity.

The Insurance Article Review Committee notes, for the consideration of the
General Assembly, that subsection (b) of this section applies only to life or
health insurance policies. The General Assembly may wish to make subsection
(b) of this section applicable also to annuity contracts to conform to other
similar provisions in this subtitle.

In subsection (b)(1) of this section, the former reference to the requirement
that the insurer furnish a copy "to the person making such request" is deleted
as surplusage.

In subsection (c)(1) of this section, the reference to a "life insurance or health
insurance policy or annuity contract" is substituted for the former reference to
"a life or health insurance or annuity policy" to conform to similar references
in other sections of this subtitle.

Defined terms: "Annuity contract" § 1-101
"Health insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Person" § 1-101
"Policy" § 1-101

12-207. STATEMENTS IN APPLICATIONS FOR LIFE OR HEALTH INSURANCE OR
ANNUITIES.

(A)     CONSIDERED TO BE REPRESENTATIONS.

EACH STATEMENT BY OR ON BEHALF OF THE INSURED OR ANNUITANT IN AN
APPLICATION FOR THE ISSUANCE, RENEWAL, OR REINSTATEMENT OF A LIFE
INSURANCE OR HEALTH INSURANCE POLICY OR ANNUITY CONTRACT IS
CONSIDERED TO BE A REPRESENTATION AND NOT A WARRANTY.

(B)     MISREPRESENTATIONS PREVENTING RECOVERY.

A MISREPRESENTATION, OMISSION, CONCEALMENT OF FACTS, OR INCORRECT
STATEMENT DOES NOT PREVENT A RECOVERY UNDER THE POLICY OR CONTRACT
UNLESS:

(1)     THE MISREPRESENTATION, OMISSION, CONCEALMENT, OR
STATEMENT IS FRAUDULENT OR MATERIAL TO THE ACCEPTANCE OF THE RISK OR
TO THE HAZARD THAT THE INSURER ASSUMES; OR

(2)     IF THE CORRECT FACTS HAD BEEN MADE KNOWN TO THE INSURER,
AS REQUIRED BY THE APPLICATION FOR THE POLICY OR CONTRACT OR
OTHERWISE, THE INSURER IN GOOD FAITH WOULD NOT HAVE:

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