Ch. 11

1996 LAWS OF MARYLAND

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

"Policy" § 1-101                                                           

"Premium" § 1-101

16-202. GRACE PERIOD.

(A)     IN GENERAL.

(1)      EACH POLICY OF LIFE INSURANCE SHALL CONTAIN A PROVISION
THAT A GRACE PERIOD SHALL BE ALLOWED WITHIN WHICH THE PAYMENT OF ANY
PREMIUM AFTER THE FIRST MAY BE MADE.

(2)      THE GRACE PERIOD SHALL BE:

(I)       30 DAYS;

(II)     AT THE OPTION OF THE INSURER, 1 MONTH OF NOT LESS THAN
30 DAYS; OR

(III)   4 WEEKS, FOR A POLICY OF INDUSTRIAL LIFE INSURANCE WITH
PREMIUMS PAYABLE MORE FREQUENTLY THAN MONTHLY.

(B)     EFFECT.

THE POLICY CONTINUES IN FULL FORCE DURING THE GRACE PERIOD.

(C)     DEDUCTION OF PREMIUM DUE FROM PROCEEDS.

IF A CLAIM ARISES UNDER THE POLICY DURING THE GRACE PERIOD, THE
AMOUNT OF ANY PREMIUM DUE OR OVERDUE MAY BE DEDUCTED FROM THE
POLICY PROCEEDS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 389.

Defined terms: "Industrial life insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101

16-203. INCONTESTABILITY.

(A)     IN GENERAL.

EACH POLICY OF LIFE INSURANCE SHALL CONTAIN A PROVISION THAT THE
POLICY IS INCONTESTABLE, EXCEPT FOR NONPAYMENT OF PREMIUMS, AFTER THE
POLICY HAS BEEN IN FORCE DURING THE LIFETIME OF THE INSURED FOR 2 YEARS
AFTER ITS DATE OF ISSUE.

(B)     APPLICABILITY TO DISABILITY AND ACCIDENTAL DEATH BENEFITS.

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