Ch. 36

1995 LAWS OF MARYLAND

(II)     THE CALENDAR YEAR STATUTORY VALUATION INTEREST
RATE FOR LIFE INSURANCE IS:

I = .03 + W(R1 -..03) + W/2(R2 - .09).

(III)    THE CALENDAR YEAR STATUTORY VALUATION INTEREST
RATE FOR A SINGLE PREMIUM IMMEDIATE ANNUITY OR FOR AN ANNUITY BENEFIT
INVOLVING A LIFE CONTINGENCY ARISING FROM ANOTHER ANNUITY OR
GUARANTEED INTEREST CONTRACT THAT HAS A CASH SETTLEMENT OPTION IS:

I = .03 + W(R - .03).

(IV)    EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS
PARAGRAPH, FOR AN ANNUITY OR GUARANTEED INTEREST CONTRACT THAT HAS A
CASH SETTLEMENT OPTION AND IS VALUED ON AN ISSUE YEAR BASIS:

1.        THE FORMULA FOR LIFE INSURANCE UNDER
SUBPARAGRAPH (II) OF THIS PARAGRAPH APPLIES IF THE ANNUITY OR
GUARANTEED INTEREST CONTRACT HAS A GUARANTEE DURATION GREATER
THAN 10 YEARS; AND

2.        THE FORMULA FOR SINGLE PREMIUM ANNUITIES UNDER
SUBPARAGRAPH (III) OF THIS PARAGRAPH APPLIES IF THE ANNUITY OR
GUARANTEED INTEREST CONTRACT HAS A GUARANTEE DURATION OF 10 YEARS OR
LESS.

(V)     THE FORMULA FOR SINGLE PREMIUM ANNUITIES UNDER
SUBPARAGRAPH (III) OF THIS PARAGRAPH APPLIES TO ANY OTHER ANNUITY OR.
GUARANTEED INTEREST CONTRACT THAT DOES NOT HAVE A CASH SETTLEMENT
OPTION.

(VI)    THE FORMULA FOR SINGLE PREMIUM ANNUITIES UNDER
SUBPARAGRAPH (III) OF THIS PARAGRAPH APPLIES TO ANY OTHER ANNUITY OR
GUARANTEED INTEREST CONTRACT THAT HAS A CASH SETTLEMENT OPTION AND IS
VALUED ON A CHANGE IN FUND BASIS.

(3) (I) IF THE CALENDAR YEAR STATUTORY VALUATION INTEREST
RATE FOR A LIFE INSURANCE POLICY ISSUED IN ANY CALENDAR YEAR
DETERMINED WITHOUT REFERENCE TO THIS PARAGRAPH DIFFERS FROM THE
CORRESPONDING ACTUAL RATE FOR A SIMILAR POLICY ISSUED IN THE
IMMEDIATELY PRECEDING CALENDAR YEAR BY LESS THAN 0.5%, THE CALENDAR
YEAR STATUTORY VALUATION INTEREST RATE FOR THAT LIFE INSURANCE POLICY
SHALL EQUAL THE CORRESPONDING ACTUAL RATE FOR THE IMMEDIATELY
PRECEDING CALENDAR YEAR.

(II) FOR PURPOSES OF THIS PARAGRAPH, THE CALENDAR YEAR
STATUTORY VALUATION INTEREST RATE FOR A LIFE INSURANCE POLICY ISSUED IN
A CALENDAR YEAR SHALL BE:

1. DETERMINED FOR 1980 USING THE REFERENCE INTEREST
RATE DETERMINED FOR 1979; AND

- 922 -