Ch. 11

1996 LAWS OF MARYLAND

THE PARTY ENTITLED TO THE DIVIDEND NOTIFIES THE INSURER IN WRITING OF A
DIFFERENT OPTION WITHIN 30 DAYS AFTER THE DATE ON WHICH THE DIVIDEND IS
PAYABLE.

(C)     PARTICIPATING NONFORFEITURE PROVISION.

IF A PARTICIPATING POLICY PROVIDES THAT THE BENEFIT UNDER ANY
PAID-UP NONFORFEITURE PROVISION IS TO BE PARTICIPATING, THE POLICY MAY
PROVIDE THAT ANY DIVISIBLE SURPLUS APPORTIONED WHILE THE INSURANCE IS
IN FORCE UNDER THE NONFORFEITURE PROVISION SHALL BE APPLIED IN ANY
MANNER SPECIFIED IN THE POLICY.

(D)     ADDITIONAL DIVIDEND OPTIONS.

THIS SECTION DOES NOT PROHIBIT AN INSURER FROM GRANTING TO THE
PARTY ENTITLED TO THE DIVIDENDS THE RIGHT TO ELECT ANOTHER DIVIDEND
OPTION OFFERED BY THE INSURER IN ADDITION TO THE OPTIONS REQUIRED BY
THIS SECTION, WHETHER OR NOT THE ADDITIONAL OPTION IS SPECIFIED IN THE
POLICY.

(E)      ADDITIONAL DIVIDENDS.

THIS SECTION DOES NOT PROHIBIT PAYMENT OF ADDITIONAL DIVIDENDS ON
DEFAULT OF PAYMENT OF PREMIUMS OR ON TERMINATION OF THE POLICY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 393.

In subsection (b)(2) of this section, the exception for term policies, which
formerly was limited to participating ordinary life insurance policies, is revised
to apply also to participating industrial life insurance policies for consistency.

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

16-207. POLICY LOANS.

(A)     SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO:

(1)      TERM POLICIES;

(2)      TERM INSURANCE BENEFITS PROVIDED BY RIDER OR
SUPPLEMENTAL POLICY PROVISIONS; OR

(3)      INDUSTRIAL LIFE INSURANCE POLICIES.

(B)      IN GENERAL.

- 390 -