PARRIS N. GLENDENING, Governor

Ch. 36

(I)       THE MINIMUM RESERVE CALCULATED UNDER § 5-307 OF THIS
SUBTITLE, INCLUDING § 5-307(A)(4)(III); OR

(II)     THE MINIMUM RESERVE CALCULATED UNDER THIS SECTION.

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

In subsection (a)(3) of this section, the reference to "§ 5-103(3) of this title"
is substituted for the former incorrect cross-reference.

In the introductory language of subsection (b) of this section, the reference to
"a life insurance policy described in § 5-307(a)(3)(ii) of this subtitle" is
substituted for the former lengthy description of life insurance policies that
were issued after January 1, 1986 containing a series of distinguishing
features.

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

5-312. SAME — RESERVE CALCULATION FOR INDETERMINATE PREMIUM PLANS.

(A)     SCOPE OF SECTION.
THIS SECTION APPLIES TO:

(1)      A PLAN OF LIFE INSURANCE THAT PROVIDES FOR FUTURE
PREMIUMS TO BE DETERMINED BY THE INSURER BASED ON ESTIMATES OF FUTURE
EXPERIENCE; AND

(2)      A PLAN OF LIFE INSURANCE OR ANNUITY THAT IS OF A NATURE
THAT PRECLUDES DETERMINING THE MINIMUM RESERVES BY THE METHODS
DESCRIBED IN §§ 5-307, 5-308, AND 5-311 OF THIS SUBTITLE.

(B)     REQUIRED RESERVES.

IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE COMMISSIONER, THE
RESERVES THAT ARE HELD UNDER A PLAN DESCRIBED IN SUBSECTION (A) OF THIS
SECTION SHALL:

(1)      BE APPROPRIATE IN RELATION TO THE BENEFITS AND PATTERN OF
PREMIUMS FOR THAT PLAN; AND

(2)      BE COMPUTED BY A METHOD THAT IS CONSISTENT WITH THE
PRINCIPLES OF THIS SUBTITLE.

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

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