PARRIS N. GLENDENING, Governor

Ch. 36

(2) THE MORTALITY TABLES AND RATES OF INTEREST USED IN
CALCULATING NONFORFEITURE BENEFITS FOR THOSE POLICIES.

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

Defined terms: "Insurer" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101

5-310. SAME — OPTIONAL RESERVE CALCULATION.

(A)     OPTIONAL ADOPTION OF HIGHER STANDARD OF VALUATION.

SUBJECT TO SUBSECTION (B) OF THIS SECTION, THE COMMISSIONER MAY
ESTABLISH ANY CATEGORY OF POLICIES, CONTRACTS, OR BENEFITS FOR WHICH
RESERVES MAY BE CALCULATED, AT THE OPTION OF THE INSURER, UNDER A
STANDARD THAT PRODUCES GREATER AGGREGATE RESERVES FOR THE
CATEGORY THAN THE AGGREGATE RESERVES CALCULATED USING THE MINIMUM
STANDARD PROVIDED IN THIS SUBTITLE.

(B)     LIMITATION.

(1)      THIS SUBSECTION DOES NOT APPLY TO ANNUITY CONTRACTS OR
PURE ENDOWMENT CONTRACTS.

(2)      THE INTEREST RATE USED TO CALCULATE THE RESERVE FOR A
POLICY OR CONTRACT UNDER A STANDARD OTHER THAN THE MINIMUM
STANDARD IN THIS SUBTITLE MAY NOT BE HIGHER THAN THE CORRESPONDING
INTEREST RATE USED TO CALCULATE ANY NONFORFEITURE BENEFITS PROVIDED
BY THE POLICY OR CONTRACT.

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

In subsection (b)(2) of this section, the phrase "by the policy or contract" is
substituted for the former word "therein" for clarity.

Defined terms: "Annuity contract" § 1-101
"Commissioner" § 1-101
"Insurer" § 1-101
"Policy" § 1-101

5-311. SAME — RESERVE CALCULATION FOR VALUATION NET PREMIUM
EXCEEDING GROSS PREMIUM CHARGED.

(A) MINIMUM RESERVE IF GROSS PREMIUM LESS THAN VALUATION NET
PREMIUM.

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