Ch. 36

1995 LAWS OF MARYLAND

(I)       ISSUED, REINSTATED, OR RENEWED THE POLICY OR
CONTRACT;

(II)     ISSUED THE POLICY OR CONTRACT IN AS LARGE AN AMOUNT
OR AT THE SAME PREMIUM OR RATE; OR

(III)    PROVIDED COVERAGE WITH RESPECT TO THE HAZARD
RESULTING IN THE LOSS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 374.

In subsection (a) of this section, . the former specific reference to
"descriptions" is deleted as unnecessary in light of the general reference to
"statement[s]".

In subsection (b)(2) of this section, the word "correct" is substituted for the
former word "true" for clarity.

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

12-208. DISCHARGE ON PAYMENT.

(A)     PAYMENT OF PROCEEDS AND RELEASE.

WHENEVER THE PROCEEDS OF OR PAYMENTS UNDER A LIFE INSURANCE OR
HEALTH INSURANCE POLICY OR ANNUITY CONTRACT BECOME PAYABLE IN
ACCORDANCE WITH THE POLICY OR CONTRACT OR IN ACCORDANCE WITH THE
EXERCISE OF ANY RIGHT OR PRIVILEGE UNDER THE POLICY OR CONTRACT, AND
THE INSURER MAKES PAYMENT IN ACCORDANCE WITH THE POLICY OR CONTRACT
OR IN ACCORDANCE WITH A WRITTEN ASSIGNMENT OF THE POLICY OR CONTRACT,
THE PERSON THEN DESIGNATED IN THE POLICY OR CONTRACT OR BY THE
ASSIGNMENT AS BEING ENTITLED TO THE PROCEEDS OR PAYMENTS IS ENTITLED TO
RECEIVE THE PROCEEDS OR PAYMENTS AND TO GIVE A FULL RELEASE.

(B)     DISCHARGE OF INSURER.

PAYMENT SHALL DISCHARGE THE INSURER FULLY FROM ALL CLAIMS UNDER
THE POLICY OR CONTRACT UNLESS, BEFORE PAYMENT IS MADE, THE INSURER HAS
RECEIVED AT ITS HOME OFFICE NOTICE WRITTEN BY OR ON BEHALF OF ANOTHER
PERSON THAT THE OTHER PERSON CLAIMS TO BE ENTITLED TO THE PAYMENT OR
TO SOME INTEREST IN THE POLICY OR CONTRACT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 381.

In subsection (a) of this section, the former reference to a policy or contract
"heretofore or hereafter issued" is deleted as surplusage.

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