Ch. 36

1995 LAWS OF MARYLAND

D. ' THE CASH SURRENDER VALUE PROVIDED ON THE
ASSUMED ENDING DATE SHALL BE CONSIDERED AS AN ENDOWMENT BENEFIT.

(IV) IN MAKING THE CALCULATION UNDER SUBPARAGRAPH (III)
OF THIS PARAGRAPH, THE MORTALITY AND INTEREST BASES .STATED IN §§ 5-304
AND 5-306 OF THIS SUBTITLE SHALL BE USED.

(B) OTHER INSURANCE.

(1)      THIS SUBSECTION APPLIES TO:

(I)       LIFE INSURANCE POLICIES THAT PROVIDE FOR A VARYING
AMOUNT OF INSURANCE OR REQUIRE THE PAYMENT OF VARYING PREMIUMS;

(II)     GROUP ANNUITY CONTRACTS AND PURE ENDOWMENT
CONTRACTS PURCHASED UNDER A RETIREMENT PLAN OR PLAN OF DEFERRED
COMPENSATION, ESTABLISHED OR MAINTAINED BY AN EMPLOYER, AN EMPLOYEE
ORGANIZATION, OR BOTH, UNLESS THE PLAN PROVIDES INDIVIDUAL RETIREMENT
ACCOUNTS OR INDIVIDUAL RETIREMENT ANNUITIES UNDER § 408 OF THE
INTERNAL REVENUE CODE;

(III)    DISABILITY AND ACCIDENTAL DEATH BENEFITS AND
BENEFITS FOR LONG-TERM HOME HEALTH CARE AND LONG-TERM CARE IN A
NURSING HOME OR OTHER RELATED INSTITUTION IN ALL POLICIES AND
CONTRACTS; AND

(IV)    ALL OTHER BENEFITS, EXCEPT:

1.        LIFE INSURANCE AND ENDOWMENT BENEFITS IN LIFE
INSURANCE POLICIES; AND

2.        BENEFITS PROVIDED BY ANNUITY CONTRACTS OR PURE
ENDOWMENT CONTRACTS NOT DESCRIBED IN ITEM (II) OF THIS PARAGRAPH.

(2)      FOR A POLICY, CONTRACT, OR BENEFIT TO WHICH THIS SUBSECTION
APPLIES, THE RESERVE ACCORDING TO THE COMMISSIONERS RESERVE VALUATION
METHOD SHALL BE CALCULATED BY A METHOD CONSISTENT WITH THE PRINCIPLES
OF SUBSECTION (A) OF THIS SECTION, DISREGARDING IN THE DETERMINATION OF
MODIFIED NET PREMIUMS ANY EXTRA PREMIUMS CHARGED BECAUSE OF
IMPAIRMENTS OR SPECIAL HAZARDS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 83(3)(b-1).

In subsection (a)(2) and (3) of this section, the references to the defined term
"guaranteed benefits" are substituted for the former references in the first
paragraph of former Art. 48A, § 83(3)(b-1) to "life and endowment insurance
benefits" and to "such benefits" for accuracy and clarity.

In subsection (a)(4)(i)3 of this section, the term "excess first year premium" is
defined for clarity.

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