Ch. 11                                          1996 LAWS OF MARYLAND

"Life insurance" § 1-101
"Life insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101
"Premium" § 1-101

16-209. TABLE OF INSTALLMENT BENEFITS.

IF A POLICY OF LIFE INSURANCE PROVIDES THAT THE PROCEEDS MAY BE PAID
IN INSTALLMENTS OR AS AN ANNUITY, THE POLICY SHALL CONTAIN A PROVISION
THAT SO STATES AND SHALL INCLUDE A TABLE THAT SHOWS THE AMOUNT AND
PERIOD OF THE INSTALLMENT OR ANNUITY IF DETERMINABLE WHEN THE POLICY
IS ISSUED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 395.

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

16-210. REINSTATEMENT.

(A) IN GENERAL.

EACH POLICY OF LIFE INSURANCE SHALL CONTAIN A PROVISION THAT,
SUBJECT TO SUBSECTION (B) OF THIS SECTION, A POLICY OF INDUSTRIAL LIFE
INSURANCE WILL BE REINSTATED WITHIN 2 YEARS AND ANY OTHER POLICY OF LIFE
INSURANCE WILL BE REINSTATED WITHIN 3 YEARS AFTER THE DUE DATE OF THE
FIRST PREMIUM IN DEFAULT ON:

(1)      WRITTEN APPLICATION FOR REINSTATEMENT;

(2)      THE PRODUCTION OF EVIDENCE OF INSURABILITY SATISFACTORY
TO THE INSURER; AND

(3)      THE PAYMENT OF ALL PREMIUMS IN ARREARS AND THE PAYMENT
OR REINSTATEMENT OF ANY OTHER INDEBTEDNESS TO THE INSURER ON THE
POLICY, WITH INTEREST ON THE PREMIUMS AND OTHER INDEBTEDNESS AT A
SPECIFIED RATE NOT EXCEEDING AN EFFECTIVE RATE OF 6% PER YEAR
COMPOUNDED ANNUALLY.

'(B) POLICIES NOT ELIGIBLE.

THE POLICY SHALL PROVIDE THAT REINSTATEMENT IS NOT ALLOWED IF:

(1)      THE POLICY HAS BEEN SURRENDERED FOR ITS CASH SURRENDER
VALUE;

(2)      THE CASH SURRENDER VALUE OF THE POLICY HAS BEEN
EXHAUSTED BECAUSE OF POLICY INDEBTEDNESS; OR

(3)      ANY PAID-UP TERM INSURANCE HAS EXPIRED.

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