PARRIS N. GLENDENING, Governor

Ch. 36

Throughout subsection (1) of this section, the phrase "fee-simple or improved
leasehold real estate" is substituted for the former phrase "real or leasehold
property" for consistency throughout the subsection and for consistency with
the introductory language of former Art. 48A, § 96(12).

Defined terms: "Commissioner" § 1-101
"County" § 1-101
"Insurance" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101
"Reinsurance" § 1-101
"State" § 1-101

5-512. INVESTMENT ACCOUNTS FOR FUNDING QUALIFIED PLANS.

(A)     "QUALIFIED PLAN" DEFINED.

IN THIS SECTION, "QUALIFIED PLAN" MEANS A PENSION, RETIREMENT, OR
PROFIT-SHARING PLAN OR AGREEMENT THAT MEETS THE REQUIREMENTS FOR
QUALIFICATION UNDER § 401 OR § 403 OF THE UNITED STATES INTERNAL REVENUE
CODE OR ANY CORRESPONDING PROVISIONS OF PRIOR OR SUBSEQUENT FEDERAL
REVENUE LAWS.

(B)     SCOPE OF SECTION.

(1)      THIS SECTION APPLIES ONLY TO THE ESTABLISHMENT OR
OPERATION OF SEPARATE INVESTMENT ACCOUNTS BY LIFE INSURERS FOR THE
FUNDING OF QUALIFIED PLANS.

(2)      THIS SECTION DOES NOT APPLY TO:

(I)       AMOUNTS CONTRIBUTED BY AN EMPLOYEE OR OTHER
PARTICIPANT IN A QUALIFIED PLAN WHO IS ENTITLED TO RETIREMENT OR OTHER
INCIDENTAL BENEFITS UNDER THE QUALIFIED PLAN; OR

(II)     AMOUNTS THAT HAVE BEEN APPLIED TO PURCHASE OR
PROVIDE RETIREMENT OR OTHER INCIDENTAL BENEFITS UNDER A POLICY OR
CONTRACT OF THE LIFE INSURER.

(C)     AUTHORIZED.

A LIFE INSURER MAY ALLOCATE TO ONE OR MORE SEPARATE INVESTMENT
ACCOUNTS IN ACCORDANCE WITH A WRITTEN AGREEMENT ANY AMOUNTS PAID TO
THE LIFE INSURER IN CONNECTION WITH A QUALIFIED PLAN THAT ARE TO BE
INVESTED BY THE LIFE INSURER IN ACCORDANCE WITH THE AGREEMENT AND
APPLIED TO THE PURCHASE OF GUARANTEED INCOME BENEFITS UNDER THE LIFE
INSURER'S INDIVIDUAL OR GROUP POLICIES OR ANNUITY CONTRACTS OR TO
PROVIDE OTHER GUARANTEED BENEFITS INCIDENTAL TO THOSE POLICIES OR
ANNUITY CONTRACTS.

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