Ch. 203

1995 LAWS OF MARYLAND

[(b)](2) Regardless of the [person's] INDIVIDUAL'S residence, a
beneficiary, assignee, or payee of any [person] INDIVIDUAL covered under paragraph
[(a)] (1) of this subsection.

(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION.
COVERAGE SHALL BE PROVIDED UNDER THIS SUBTITLE TO INDIVIDUALS SPECIFIED
IN SUBSECTION (A) OF THIS SECTION FOR:

(I)      DIRECT, NONGROUP LIFE, HEALTH, ANNUITY (INCLUDING
STRUCTURED SETTLEMENTS), AND SUPPLEMENTAL POLICIES OR CONTRACTS; OR

(II)     CERTIFICATES UNDER DIRECT, GROUP POLICIES OR
CONTRACTS ISSUED BY MEMBER INSURERS, EXCEPT AS LIMITED BY THIS SUBTITLE.

(2) COVERAGE MAY NOT BE PROVIDED UNDER THIS SUBTITLE FOR:

(I)       ANY PORTION OF A POLICY OR CONTRACT:

1.        A. NOT GUARANTEED BY THE INSURER; OR

B. UNDER WHICH THE RISK IS BORNE BY THE
POLICYHOLDER OR CONTRACT HOLDERS; AND

2.        WHICH,           UNDER           THE           PROVISIONS           OF
SUB-SUBPARAGRAPH 1 OF THIS SUBPARAGRAPH, SHALL INCLUDE BUT NOT BE
LIMITED TO THE FOLLOWING TYPES OF POLICIES:

A.       VARIABLE ANNUITY CONTRACTS;

B.        VARIABLE LIFE INSURANCE CONTRACTS EXCEPT TO THE
EXTENT OF GUARANTEED DEATH BENEFITS IN THE CONTRACT;

C.       THE VALUE OF ANY ANNUITY CONTRACT IN EXCESS OF
THE VALUES GUARANTEED IN THE CONTRACT; OR

D.       THE VALUE OF ANY UNIVERSAL LIFE AND INTEREST
SENSITIVE LIFE AND SIMILAR PRODUCTS IN EXCESS OF THE VALUES GUARANTEED
IN THE CONTRACT;

(II)     ANY POLICY OR CONTRACT OF REINSURANCE, UNLESS
ASSUMPTION CERTIFICATES HAVE BEEN ISSUED;

(III)    ANY PORTION OF A POLICY OF OR CONTRACT TO THE EXTENT
THAT THE RATE OF INTEREST ON WHICH IT IS BASED:

1. AVERAGED OVER THE PERIOD OF 4 YEARS PRIOR TO THE
DATE ON WHICH THE CORPORATION BECOMES OBLIGATED WITH RESPECT TO THE
POLICY OR CONTRACT, EXCEEDS A RATE OF INTEREST DETERMINED BY
SUBTRACTING 2 PERCENTAGE POINTS FROM MOODY'S CORPORATE BOND YIELD
AVERAGE FOR THE 4-YEAR PERIOD PRIOR TO THE DATE ON WHICH THE
CORPORATION BECAME OBLIGATED OR, IF THE POLICY OR CONTRACT WAS ISSUED
LESS THAN 4 YEARS BEFORE THE CORPORATION BECAME OBLIGATED, FOR THAT
PERIOD; OR

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