Ch. 36

1995 LAWS OF MARYLAND

2. SUBJECT ONLY TO A FIXED SURRENDER CHARGE
STIPULATED IN THE CONTRACT AS A PERCENTAGE OF THE FUND.

(2)      FOR THE PURPOSES OF THIS SUBSECTION, AN INSURER:

(I)       MAY ELECT TO VALUE ANNUITIES OR GUARANTEED INTEREST
CONTRACTS THAT HAVE CASH SETTLEMENT OPTIONS ON AN ISSUE YEAR BASIS OR A
CHANGE IN FUND BASIS; AND

(II)     SHALL VALUE ANNUITIES OR GUARANTEED INTEREST
CONTRACTS THAT DO NOT HAVE CASH SETTLEMENT OPTIONS ON AN ISSUE YEAR
BASIS.

(3)      THE WEIGHTING FACTOR IN THE FORMULAS UNDER SUBSECTION
(D) OF THIS SECTION SHALL BE DETERMINED AS PROVIDED IN THIS SUBSECTION.

(4)      THE WEIGHTING FACTOR FOR LIFE INSURANCE IS DETERMINED
BASED ON THE GUARANTEE DURATION OF THE LIFE INSURANCE AS FOLLOWS:

GUARANTEE DURATION                               WEIGHTING

(YEARS)                                                                 FACTOR

10 OR LESS                                                           .50

MORE THAN 10, BUT NOT
MORE THAN 20                                                   .45

MORE THAN 20                                                   .35

(5)      THE WEIGHTING FACTOR 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 .80.

(6)      EXCEPT AS PROVIDED IN PARAGRAPHS (5) AND (8) OF THIS
SUBSECTION, THE WEIGHTING FACTOR FOR AN ANNUITY OR GUARANTEED
INTEREST CONTRACT VALUED ON AN ISSUE YEAR BASIS IS DETERMINED BASED ON
THE GUARANTEE DURATION OF THE ANNUITY OR CONTRACT AS FOLLOWS:

GUARANTEE

DURATION

(YEARS)

5 OR LESS:

MORE THAN 5, BUT NOT

MORE THAN 10:

MORE THAN 10, BUT NOT

MORE THAN 20:

MORE THAN 20:

(7)      EXCEPT AS PROVIDED IN PARAGRAPHS (5) AND (S) OF THIS
SUBSECTION, THE WEIGHTING FACTOR FOR AN ANNUITY OR GUARANTEED
INTEREST CONTRACT VALUED ON A CHANGE IN FUND BASIS IS THE WEIGHTING
FACTOR AS DETERMINED UNDER PARAGRAPH (6) OF THIS SUBSECTION. INCREASED
BY:

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WEIGHTING	FACTOR
FOR PLAN TYPE
A B	C
.80 .60	.50
.75 .60	.50
.65 .50	.45
.45 .35	.35