Ch. 36

1995 LAWS OF MARYLAND

THE PRESENT VALUE, AT THE DATE OF VALUATION, OF ANY FUTURE VALUATION
CONSIDERATIONS DERIVED FROM FUTURE GROSS CONSIDERATIONS THAT ARE
REQUIRED BY THE TERMS OF THE CONTRACT AND BECOME PAYABLE PRIOR TO
THE END OF THE CONTRACT YEAR.

(2) FOR PURPOSES OF THIS SUBSECTION:

(I)      THE FUTURE GUARANTEED BENEFITS SHALL BE DETERMINED
BY USING THE MORTALITY TABLE, IF ANY, AND INTEREST RATE SPECIFIED IN THE
CONTRACT FOR DETERMINING GUARANTEED BENEFITS; AND

(II)     THE VALUATION CONSIDERATIONS ARE THE PORTIONS OF
THE RESPECTIVE GROSS CONSIDERATIONS APPLIED UNDER THE TERMS OF THE
CONTRACT TO DETERMINE NONFORFEITURE VALUES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 83(3)(b-2).

In subsection (a) of this section, the references to the applicability of "this
section" are not changed from the former law even though the unit
designation for this provision has changed from a paragraph under the former
law to a section under the revised law, because the former use of "this section"
was clearly erroneous.

In subsection (a)(2)(i) of this section, the former phrase "including a
partnership or sole proprietorship" is deleted as unnecessary because there
are no limitations on the term "employer".

Also in subsection (a)(2)(i) of this section, the former words "as amended",
which modified "Internal Revenue Code", are deleted as unnecessary in light
of the generally applicable role of statutory construction in Art. 1, § 21 of the
Code.
Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101

5-309. SAME — MINIMUM RESERVES FOR LIFE INSURANCE POLICIES..

(A)     SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO RESERVES FOR 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 INCLUDED IN A LIFE INSURANCE POLICY.

(B)     MINIMUM AGGREGATE RESERVES FOR LIFE INSURANCE POLICIES.

AN INSURER'S AGGREGATE RESERVES FOR ALL LIFE INSURANCE POLICIES
MAY NOT BE LESS THAN THE AGGREGATE RESERVES CALCULATED IN
ACCORDANCE WITH:

(1) THE METHODS SET FORTH IN §§ 5-307, 5-308, 5-311, AND 5-312; AND

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