Ch. 11

1996 LAWS OF MARYLAND

(2)      PROVIDES THAT, ON THE DEATH OF ANYONE OTHER THAN A
BENEFICIARY OR AN INSURED UNDER THE CONTRACT, THE OWNER OR
BENEFICIARY OF THE CONTRACT SHALL RECEIVE THE PAYMENT OR GRANTING OF
ANYTHING OF VALUE;

(3)     PROVIDES THAT ALL OR PART OF THE PREMIUMS OR
CONSIDERATION FOR THE CONTRACT, DIVIDENDS, COUPONS, RESERVES, SPECIAL
RESERVES, EXCESS INTEREST, OR MONEY IN EXCESS OF THE NORMAL RESERVE
REQUIRED TO MEET THE CONTRACTUAL GUARANTEES OF THE CONTRACT ARE TO
BE PLACED OR INVESTED IN SPECIAL FUNDS OR SEGREGATED ACCOUNTS WITHOUT
INSURANCE OR LIFE CONTINGENCY FEATURES, IF THE FUNDS OR EARNINGS ARE
DIVIDED AMONG THOSE TAKING THE CONTRACT OR THEIR BENEFICIARIES OR
ASSIGNEES; OR

(4) AS AN INDUCEMENT TO OR IN CONNECTION WITH THE SALE OR
ACCEPTANCE OF THE CONTRACT, PROVIDES FOR:

(I)      THE SALE, SOLICITATION, OR DELIVERY OF STOCK OR SHARES
OF STOCK IN A COMPANY;

(II)     A BENEFIT CERTIFICATE, SECURITIES, OR SPECIAL ADVISORY
BOARD CONTRACT, OR OTHER SIMILAR CONTRACTS OR RESOLUTIONS; OR

(III)   POLICY. DIVIDENDS BEARING A STATED RELATIONSHIP TO
DIVIDENDS ON THE STOCK OF A COMPANY.

REVISOR'S NOTE: This section is new language derived without substantive
change, from former Art. 48A, § 416.

In items (2), (3), and (4) of this section, the term "contract" is substituted for
the former term "policy" for consistency throughout this section with the
introductory language of this section.

In item (3) of this section, the former word "funds" is deleted as unnecessary
in light of the word "money".

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

16-113. FUNDING AGREEMENTS.

(A)     AUTHORIZED.

SUBJECT TO THE APPROVAL OF THE COMMISSIONER, AN INSURER
AUTHORIZED TO DELIVER OR ISSUE FOR DELIVERY AN ANNUITY CONTRACT IN THE
STATE MAY DELIVER OR ISSUE FOR DELIVERY FUNDING AGREEMENTS.

(B)     ISSUANCE TO SPECIFIED PERSONS.

A FUNDING AGREEMENT MAY BE ISSUED TO:

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