PARRIS N. GLENDENING, Governor                                   Ch. 36

approve the use of new mortality tables adopted by the National Association
of Insurance Commissioners for annuities and pure endowment contracts
after 1980. See COMAR 09.30.68 and .69. These regulations mandate the use
of the new tables for contracts issued on or after January 1, 1987, (or annuities
and pure endowments purchased after that date, in the case of annuities and
pure endowments purchased under group annuity and pure endowment
contracts) but make the new tables optional for contracts issued (or annuities
or pure endowments purchased) before January 1, 1987.

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

5-305. SAME — COMPUTATION OF MINIMUM STANDARD FOR ANNUITIES.

(A)     SCOPE OF SECTION.

(1)      EXCEPT AS PROVIDED IN § 5-306 OF THIS SUBTITLE AND SUBJECT TO
PARAGRAPH (3) OF THIS SUBSECTION, THIS SECTION APPLIES TO:

(I)       ALL INDIVIDUAL ANNUITY CONTRACTS AND PURE
ENDOWMENT CONTRACTS ISSUED ON OR AFTER THE OPERATIVE DATE OF THIS
SECTION; AND

(II)     ALL ANNUITIES AND PURE ENDOWMENTS PURCHASED ON OR
AFTER THE OPERATIVE DATE UNDER GROUP ANNUITY CONTRACTS AND PURE
ENDOWMENT CONTRACTS.

(2)      THIS SECTION DOES NOT APPLY TO ANY DISABILITY OR
ACCIDENTAL DEATH BENEFIT IN A CONTRACT.

(3)      THE OPERATIVE DATE OF THIS SECTION IS:

(I)      JANUARY 1, 1979; OR

(II)     THE DATE OR DATES BEFORE JANUARY 1, 1979, SPECIFIED BY
THE INSURER IN A WRITTEN NOTICE FILED WITH THE COMMISSIONER BEFORE
JANUARY 1, 1979, OF THE INSURER'S ELECTION OF AN EARLIER DATE OR DATES.

(B)     APPLICABLE TABLE AND INTEREST RATE — INDIVIDUAL CONTRACTS
ISSUED ON OR BEFORE JUNE 30, 1980.

FOR AN INDIVIDUAL ANNUITY CONTRACT OR PURE ENDOWMENT CONTRACT
ISSUED ON OR BEFORE JUNE 30, 1980, THE APPLICABLE TABLE AND INTEREST RATE
FOR THE MINIMUM STANDARD FOR THE VALUATION OF THE CONTRACT ARE:

(1)      THE 1971 INDIVIDUAL ANNUITY MORTALITY TABLE OR A
MODIFICATION OF THAT TABLE APPROVED BY THE COMMISSIONER; AND

(2)      INTEREST AT:

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