Ch. 11

1996 LAWS OF MARYLAND

Defined terms: "Annuity" § 1-101
"Life insurance" § 1-101
"Reinsurance" § 1-101

16-102. WHOLESALE LIFE INSURANCE AUTHORIZED.

AN INSURER THAT IS AUTHORIZED TO ISSUE ORDINARY LIFE INSURANCE IN
THE STATE MAY ISSUE WHOLESALE LIFE INSURANCE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 387B(a).

The word "issue" is substituted for the former word "write" for consistency
with the subsequent reference to "issue".

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

   "Wholesale life insurance" § 1-101

16-103. ASSESSABLE LIFE INSURANCE OR ANNUITIES PROHIBITED.
A LIFE INSURER MAY NOT:

(1)     ISSUE OR DELIVER IN THE STATE A POLICY OF LIFE INSURANCE OR
AN ANNUITY CONTRACT THAT PROVIDES FOR THE PAYMENT OF AN ASSESSMENT BY
A POLICYHOLDER OR MEMBER IN ADDITION TO THE PREMIUM STATED IN THE
POLICY OR ANNUITY CONTRACT TO BE CHARGED FOR THE LIFE INSURANCE OR
ANNUITY; OR

(2)      LEVY OR COLLECT AN ASSESSMENT PROHIBITED BY ITEM (1) OF
THIS SECTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 369.

In item (1) of this section, the reference to the premium stated in the policy or
"annuity contract" is added for consistency within this section.

Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101

"Policy" § 1-101
"Premium" § 1-101

16-104. BACK-DATING POLICIES AND APPLICATIONS PROHIBITED.

(A) BACK-DATED POLICIES.

AN INSURER MAY NOT KNOWINGLY DELIVER OR ISSUE FOR DELIVERY IN THE
STATE A POLICY OF LIFE INSURANCE THAT PURPORTS TO BE ISSUED OR TO TAKE
EFFECT AS OF A DATE MORE THAN 6 MONTHS BEFORE THE APPLICATION FOR THE
POLICY WAS MADE, IF, AS A RESULT, THE PREMIUM ON THE POLICY IS REDUCED

- 370 -