Ch. 36

1995 LAWS OF MARYLAND

2. FOR AN ANNUITY OR A GUARANTEED INTEREST
CONTRACT, ON JUNE 30 OF THE CALENDAR YEAR OF ISSUE OR PURCHASE.

(2)      THE REFERENCE INTEREST RATE IN THE FORMULAS UNDER
SUBSECTION (D) OF THIS SECTION SHALL BE DETERMINED AS PROVIDED IN THIS
SUBSECTION.                                                                                         

(3)      FOR LIFE INSURANCE, THE REFERENCE INTEREST RATE IS THE
LESSER OF:

(I)       THE 36-MONTH MOODY'S CORPORATE BOND YIELD AVERAGE;
OR

(II)     THE 12-MONTH MOODY'S CORPORATE BOND YIELD AVERAGE.

(4)      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, THE
REFERENCE INTEREST RATE IS THE 12-MONTH MOODY'S CORPORATE BOND YIELD
AVERAGE.

(5)      EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION, FOR
AN ANNUITY OR GUARANTEED INTEREST CONTRACT THAT HAS A CASH
SETTLEMENT OPTION, IS VALUED ON AN ISSUE YEAR BASIS, AND HAS A GUARANTEE
DURATION GREATER THAN 10 YEARS, THE REFERENCE INTEREST RATE IS THE
LESSER OF:                                                                               . .

(I)       THE 36-MONTH MOODY'S CORPORATE BOND YIELD AVERAGE;
OR                                                                                       

(II)     THE 12-MONTH MOODY'S CORPORATE BOND YIELD AVERAGE.

(6)      EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SECTION, THE
REFERENCE INTEREST RATE IS THE 12-MONTH MOODY'S CORPORATE BOND YIELD
AVERAGE FOR ANY OTHER ANNUITY OR GUARANTEED INTEREST CONTRACT THAT:

(I)       HAS A CASH SETTLEMENT OPTION, IS VALUED ON AN ISSUE
YEAR BASIS, AND HAS A GUARANTEE DURATION OF 10 YEARS OR LESS:

(II)     DOES NOT HAVE A CASH SETTLEMENT OPTION: OR

(III)    HAS A CASH SETTLEMENT OPTION AND IS VALUED ON A
CHANGE IN FUND BASIS.

(7)      IF MOODY'S CORPORATE BOND YIELD AVERAGE IS NO LONGER
PUBLISHED BY MOODY'S INVESTORS SERVICE, INC. OR IF THE NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS DETERMINES THAT MOODY'S
CORPORATE BOND YIELD AVERAGE IS NO LONGER APPROPRIATE TO DETERMINE
THE REFERENCE INTEREST RATE, THE COMMISSIONER SHALL APPROVE BY
REGULATION AN ALTERNATIVE METHOD ADOPTED BY THE NATIONAL
ASSOCIATION OF INSURANCE COMMISSIONERS TO DETERMINE THE REFERENCE
INTEREST RATE.                                                                                                           

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