PARRIS N. GLENDENING, Governor

Ch. 11

THE INCONTESTABILITY PROVISION DESCRIBED IN SUBSECTION (A) OF THIS
SECTION DOES NOT APPLY TO POLICY PROVISIONS THAT RELATE TO DISABILITY
BENEFITS OR TO ADDITIONAL BENEFITS FOR DEATH BY ACCIDENT OR ACCIDENTAL
MEANS.

(C) EFFECT.

A PROVISION IN A POLICY OF LIFE INSURANCE THAT PROVIDES THAT THE
POLICY IS INCONTESTABLE AFTER A SPECIFIED PERIOD:

(1)      PRECLUDES ONLY A CONTEST OF THE VALIDITY OF THE POLICY;
AND

(2)      DOES NOT PRECLUDE THE ASSERTION OF DEFENSES BASED ON
PROVISIONS IN THE POLICY THAT EXCLUDE OR RESTRICT COVERAGE, WHETHER
OR NOT THE RESTRICTIONS OR EXCLUSIONS ARE EXCEPTED IN THE PROVISION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 390 and 400.

In subsection (c)(2) of this section, the former phrase "at any time" is deleted
as surplusage.

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

16-204. CONTRACT BETWEEN PARTIES; EFFECT OF STATEMENTS IN APPLICATION.

(A)     CONTRACT BETWEEN PARTIES.

EACH POLICY OF LIFE INSURANCE SHALL CONTAIN A PROVISION THAT THE
POLICY, OR THE POLICY AND THE APPLICATION FOR THE POLICY IF A COPY OF THE
APPLICATION IS ENDORSED ON OR ATTACHED TO THE POLICY WHEN ISSUED,
CONSTITUTE THE ENTIRE CONTRACT BETWEEN THE PARTIES.

(B)     EFFECT OF STATEMENTS IN APPLICATION.

IF THE APPLICATION IS MADE PART OF THE POLICY, THE POLICY SHALL
CONTAIN A PROVISION THAT THE STATEMENTS IN THE APPLICATION, IN THE
ABSENCE OF FRAUD, ARE CONSIDERED REPRESENTATIONS AND NOT WARRANTIES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 391.

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

16-205. MISSTATEMENT OF AGE.

(A) IN GENERAL.

EACH POLICY OF LIFE INSURANCE SHALL CONTAIN A PROVISION THAT IF THE
AGE OF THE INSURED OR OF ANY OTHER INDIVIDUAL WHOSE AGE IS CONSIDERED

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