PARRIS N. GLENDENING, Governor

Ch. 11

(B) REWRITTEN POLICY EFFECTIVE ON EARLIER DATE.

(1)     THIS SUBSECTION APPLIES ONLY IF THE REWRITTEN POLICY IS
MADE EFFECTIVE AS OF A DATE EARLIER THAN THE DATE ON WHICH THE
EXCHANGE, ALTERATION, OR CONVERSION OCCURS.

(2)     THE AMOUNT OF INSURANCE UNDER A REWRITTEN POLICY
SUBJECT TO THIS SUBSECTION MAY NOT EXCEED THE GREATER OF:

(I)      THE AMOUNT OF INSURANCE UNDER THE ORIGINAL POLICY
OR ANNUITY CONTRACT; AND

(II)    THE AMOUNT OF INSURANCE THAT THE PREMIUM PAID FOR
THE ORIGINAL POLICY OR ANNUITY CONTRACT WOULD HAVE PURCHASED IF THE
REWRITTEN POLICY HAD BEEN APPLIED FOR ORIGINALLY.

(3)     IF EVIDENCE OF INSURABILITY IS REQUIRED IN CONJUNCTION
WITH AN EXCHANGE, ALTERATION, OR CONVERSION TO A POLICY ON A PLAN THAT
REQUIRES A LOWER PREMIUM RATE, OR TO A POLICY TO WHICH BENEFITS OR
FEATURES ARE ADDED THAT DIFFER FROM THE ORIGINAL POLICY, THE
REWRITTEN POLICY MAY PROVIDE THAT THE DATE ON WHICH THE EXCHANGE,
ALTERATION, OR CONVERSION OCCURS SHALL BE USED TO DETERMINE:

(I)      THE APPLICABILITY OF AN INCONTESTABILITY CLAUSE IN THE
REWRITTEN POLICY TO THE RIGHT OF THE INSURER TO CONTEST THE EXCHANGE,
ALTERATION, OR CONVERSION; OR

(II)    THE APPLICABILITY OF A CLAUSE IN THE REWRITTEN POLICY
THAT LIMITS LIABILITY IN THE EVENT OF THE SUICIDE OF THE INSURED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 401.

In the introductory language of subsection (a) of this section, the defined term
"annuity contract" is substituted for the former reference to an "annuity policy
contract" to conform to terminology used throughout this article.

In subsections (a)(1) and (b)(2)(i) and (ii) of this section, the references to
the original policy "or annuity contract" are added to clarify that this section
applies to original policies and annuity contracts.

In subsection (b)(3)(i) of this section, the defined term "insurer" is substituted
for the former term "company" for clarity and to conform to terminology used
throughout this title.

Defined terms: "Annuity contract" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Life insurer" § 1-101
"Policy" § 1-101
"Premium" § 1-101

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