PARRIS N. GLENDENING, Governor

Ch. 11

(2) COVERAGE MAY NOT BE PROVIDED UNDER THIS SUBTITLE FOR:

(I)       ANY PART OF A POLICY OR CONTRACT:

1.        THAT IS NOT GUARANTEED BY THE INSURER, OR UNDER
WHICH THE RISK IS BORNE BY THE POLICYHOLDER OR CONTRACT HOLDER; AND

2.        THAT, UNDER SUBITEM 1 OF THIS ITEM, INCLUDES THE
FOLLOWING TYPES OF. POLICIES:

A.       VARIABLE ANNUITY CONTRACTS;

B.       VARIABLE LIFE INSURANCE CONTRACTS, EXCEPT TO THE
EXTENT OF GUARANTEED DEATH BENEFITS IN THE CONTRACT;

C.       THE VALUE OF AN ANNUITY CONTRACT IN EXCESS OF
THE VALUES GUARANTEED IN THE CONTRACT; OR

D.       THE VALUE OF A UNIVERSAL LIFE AND INTEREST
SENSITIVE LIFE AND SIMILAR PRODUCTS IN EXCESS OF THE VALUES GUARANTEED
IN THE CONTRACT;

(II)     A POLICY OR CONTRACT OF REINSURANCE, UNLESS
ASSUMPTION CERTIFICATES HAVE BEEN ISSUED;

(III)   ANY PART OF A POLICY OR CONTRACT TO THE EXTENT THAT
THE RATE OF INTEREST ON WHICH IT IS BASED:

1.        AVERAGED OVER THE PERIOD OF 4 YEARS BEFORE THE
DATE ON WHICH THE CORPORATION BECOMES OBLIGATED WITH RESPECT TO THE
POLICY OR CONTRACT, EXCEEDS A RATE OF INTEREST DETERMINED BY
SUBTRACTING 2 PERCENTAGE POINTS FROM MOODY'S CORPORATE BOND YIELD
AVERAGE FOR THE 4-YEAR PERIOD BEFORE THE DATE ON WHICH THE
CORPORATION BECAME OBLIGATED OR, IF THE POLICY OR CONTRACT WAS ISSUED
LESS THAN 4 YEARS BEFORE THE CORPORATION BECAME OBLIGATED, FOR THAT
PERIOD; OR

2.        ON OR AFTER THE DATE ON WHICH THE CORPORATION
BECOMES OBLIGATED WITH RESPECT TO THE POLICY OR CONTRACT, EXCEEDS THE
RATE OF INTEREST DETERMINED BY SUBTRACTING 3 PERCENTAGE POINTS FROM
THE MOST RECENT PUBLISHED MOODY'S CORPORATE BOND YIELD AVERAGE;

(IV)    A PLAN OR PROGRAM OF AN EMPLOYER, ASSOCIATION, OR
SIMILAR ENTITY TO PROVIDE LIFE, HEALTH, OR ANNUITY BENEFITS TO ITS
EMPLOYEES OR MEMBERS TO THE EXTENT THAT THE PLAN OR PROGRAM IS
SELF-FUNDED OR UNINSURED, INCLUDING BENEFITS PAYABLE BY AN EMPLOYER,
ASSOCIATION, OR SIMILAR ENTITY UNDER:

1.        A MULTIPLE EMPLOYER WELFARE ARRANGEMENT, AS
DEFINED IN § 514 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974;

2.        A MINIMUM PREMIUM GROUP INSURANCE PLAN;

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