PARRIS N. GLENDENING, Governor

Ch. 11

(III)    HAS AN AMOUNT OF INSURANCE THAT DOES NOT VARY OVER
THE DURATION OF THE POLICY; AND

(IV)    PROVIDES BENEFITS THAT HAVE THE SAME PRESENT VALUE
AT THE DATE OF ISSUE AS THE BENEFITS UNDER THE POLICY THAT HAS THE
VARIABLE AMOUNT OF INSURANCE.

(2) IF THE POLICY THAT HAS A VARIABLE AMOUNT OF INSURANCE IS
ISSUED ON THE LIFE OF A CHILD UNDER AGE 10, THE EQUIVALENT UNIFORM
AMOUNT OF INSURANCE MAY BE CALCULATED AS THOUGH THE AMOUNT OF
INSURANCE PROVIDED BY THE POLICY BEFORE AGE 10 WAS THE AMOUNT
PROVIDED BY THE POLICY AT AGE 10.

(D) POLICIES WITH SUPPLEMENTAL TERM INSURANCE BENEFITS.

(1)      SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THE ADJUSTED
PREMIUMS FOR A POLICY THAT PROVIDES TERM INSURANCE BENEFITS BY RIDER
OR SUPPLEMENTAL POLICY PROVISION SHALL EQUAL THE SUM OF:

(I)       THE ADJUSTED PREMIUMS FOR AN OTHERWISE SIMILAR
POLICY ISSUED AT THE SAME AGE WITHOUT THE TERM INSURANCE BENEFITS
DURING THE PERIOD FOR WHICH PREMIUMS FOR THE TERM INSURANCE BENEFITS
ARE PAYABLE; AND

(II)     THE ADJUSTED PREMIUMS FOR THE TERM INSURANCE
DURING THE PERIOD FOR WHICH PREMIUMS FOR THE TERM INSURANCE ARE
PAYABLE.

(2)      PARAGRAPH (1) (I) AND (II) OF THIS SUBSECTION SHALL BE
CALCULATED SEPARATELY IN ACCORDANCE WITH SUBSECTIONS (B) AND (C) OF
THIS SECTION EXCEPT THAT, FOR PURPOSES OF SUBSECTION (B)(2)(II), (III), AND (IV)
OF THIS SECTION, THE AMOUNT OF INSURANCE OR THE EQUIVALENT UNIFORM
AMOUNT OF INSURANCE USED IN CALCULATING THE ADJUSTED PREMIUMS IN
PARAGRAPH (1)(II) OF THIS SUBSECTION SHALL EQUAL THE CORRESPONDING
AMOUNT DETERMINED FOR THE ENTIRE POLICY LESS THE AMOUNT USED IN
CALCULATING THE ADJUSTED PREMIUMS IN PARAGRAPH (1)(I) OF THIS
SUBSECTION.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 414(f), (g), and (h).

In subsection (b)(2)(i) of this section, the phrase "calculated as of the date of
issue" is substituted for the former word "then" for clarity.

In subsection (b)(2)(ii) of this section, the cross-reference "calculated under
subsection (c) of this section" is substituted for the former reference "as
hereinafter defined" for clarity.

In subsections (c) and (d) of this section, the former phrase "[e]xcept as to
policies issued on or after the operative date of [former] subsection (k-1)" is
deleted as unnecessary in light of subsection (a) of this section.

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