PARRIS N. GLENDENING, Governor

Ch. 36

(I)      FOR PLAN TYPE A, .15;

(II)     FOR PLAN TYPE B, .25; AND

(III)    FOR PLAN TYPE C, .05.

(8) THE WEIGHTING FACTOR AS DETERMINED UNDER PARAGRAPH (6)
OR (7) OF THIS SUBSECTION SHALL BE INCREASED BY .05 FOR:

(I)       AN ANNUITY OR GUARANTEED INTEREST CONTRACT THAT IS
VALUED ON AN ISSUE YEAR BASIS, HAS A CASH SETTLEMENT OPTION, AND DOES
NOT GUARANTEE INTEREST RATES ON AMOUNTS RECEIVED MORE THAN 12
MONTHS AFTER ISSUE OR PURCHASE; OR

(II)     AN ANNUITY OR GUARANTEED INTEREST CONTRACT THAT IS
VALUED ON A CHANGE IN FUND BASIS AND DOES NOT GUARANTEE INTEREST
RATES ON AMOUNTS RECEIVED MORE THAN 12 MONTHS BEYOND THE VALUATION
DATE.

(F) REFERENCE INTEREST RATE.

(1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(II)     "MOODY'S CORPORATE BOND YIELD AVERAGE" MEANS
MOODY'S CORPORATE BOND YIELD AVERAGE - MONTHLY AVERAGE CORPORATES,
AS PUBLISHED BY MOODY'S INVESTORS SERVICE, INC.

(III)    "12-MONTH MOODY'S CORPORATE BOND YIELD AVERAGE"
MEANS THE AVERAGE OF MOODY'S CORPORATE BOND YIELD AVERAGE OVER THE
12-MONTH PERIOD THAT ENDS:

1.        FOR LIFE INSURANCE, ON JUNE 30 OF THE CALENDAR
YEAR IMMEDIATELY PRECEDING THE YEAR OF ISSUE;

2.        FOR AN ANNUITY OR GUARANTEED INTEREST
CONTRACT OTHER THAN ONE DESCRIBED IN ITEM 3 OF THIS SUBPARAGRAPH, ON
JUNE 30 OF THE CALENDAR YEAR OF ISSUE OR PURCHASE; AND

3.        FOR AN ANNUITY OR GUARANTEED INTEREST
CONTRACT THAT HAS A CASH SETTLEMENT OPTION, IS VALUED ON A CHANGE IN
FUND BASIS, IS NOT A SINGLE PREMIUM IMMEDIATE ANNUITY, AND IS NOT AN
ANNUITY BENEFIT INVOLVING A LIFE CONTINGENCY ARISING FROM ANOTHER
ANNUITY OR GUARANTEED INTEREST CONTRACT THAT HAS A CASH SETTLEMENT
OPTION, ON JUNE 30 OF THE CALENDAR YEAR OF THE CHANGE IN THE FUND.

(IV)    "36-MONTH MOODY'S CORPORATE BOND YIELD AVERAGE"
MEANS THE AVERAGE OF MOODY'S CORPORATE BOND YIELD AVERAGE OVER THE
36-MONTH PERIOD THAT ENDS:

1. FOR LIFE INSURANCE, ON JUNE 30 OF THE CALENDAR
YEAR IMMEDIATELY PRECEDING THE YEAR OF ISSUE; AND

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