PARRIS N. GLENDENING, Governor

Ch. 36

Also in subsection (a) of this section, the former reference to "giv[ing] full
acquittance therefor" is deleted as unnecessary in light of subsection (b) of
this section, which allows the insurer to be discharged from all claims under
the policy or contract.

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

12-209. PROHIBITED PROVISIONS IN POLICY OR CONTRACT.

A LIFE INSURANCE OR HEALTH INSURANCE POLICY OR ANNUITY CONTRACT
MAY NOT BE DELIVERED OR ISSUED FOR DELIVERY IN THE STATE IF THE POLICY
OR CONTRACT:

(1)     STATES THAT THE POLICY OR CONTRACT IS TO BE CONSTRUED
ACCORDING TO THE LAWS OF ANOTHER STATE OR COUNTRY;

(2)      STATES THAT THE RIGHTS AND OBLIGATIONS OF THE INSURED OR
OF A PERSON WITH A CLAIM UNDER THE POLICY OR CONTRACT ARE TO BE
GOVERNED BY LAWS OTHER THAN THE LAWS OF THIS STATE;

(3)     PROVIDES A PERIOD SHORTER THAN 3 YEARS WITHIN WHICH AN
ACTION MAY BE BROUGHT ON THE POLICY OR CONTRACT;

(4)     DEPRIVES THE COURTS OF THE STATE OF THE JURISDICTION OF
ANY ACTION AGAINST THE INSURER;

(5)     PROVIDES THAT THE AGENT WHO SOLICITS THE INSURANCE OR
ANNUITY IS THE AGENT OF THE INSURED; OR

(6)     MAKES THE ACTS OR REPRESENTATIONS OF THE AGENT WHO
SOLICITS THE INSURANCE OR ANNUITY BINDING ON THE INSURED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 377A.

In items (1) and (2) of this section, the references to a "policy" are added for
consistency. Similarly, in item (3) of this section, the reference to a "contract"
is added for consistency.

In items (3) and (4) of this section, the former reference to an action "at law
or in equity" is deleted as obsolete.

In items (5) and (6) of this section, the reference to the "insured" is
substituted for the former references to "the person covered under such
contract" and "the person so covered" for brevity.

- 1291 -