Ch. 11

1996 LAWS OF MARYLAND

In subsection (c)(1)(iv) of this section, the phrase "that has the variable
amount of insurance" is added for clarity.

In subsection (d) of this section, the conjunction "and" is substituted for the
former conjunction "or" for accuracy and to reflect the revision of this
paragraph as an equation.

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

16-308. SAME — APPLICABLE TABLES.

(A)     SCOPE OF SECTION.

THIS SECTION DOES NOT APPLY TO A POLICY OF LIFE INSURANCE ISSUED ON
OR AFTER THE OPERATIVE DATE OF § 16-309 OF THIS SUBTITLE.

(B)      1941 STANDARD ORDINARY MORTALITY TABLE.

(1)  . THIS SUBSECTION DOES NOT APPLY TO A POLICY GOVERNED BY
SUBSECTION (C) OR (D) OF THIS SECTION.

(2)      (I) FOR POLICIES OF ORDINARY LIFE INSURANCE, THE ADJUSTED
PREMIUMS AND PRESENT VALUES REFERRED TO IN THIS SUBTITLE SHALL BE
CALCULATED BASED ON THE COMMISSIONERS 1941 STANDARD ORDINARY
MORTALITY TABLE.

(II) ANY DIFFERENTIAL BASED ON SEX SHALL REFLECT
ACTUARIAL EXPECTANCIES AND IS SUBJECT TO THE COMMISSIONER'S APPROVAL.

(3)      FOR POLICIES OF INDUSTRIAL LIFE INSURANCE, THE ADJUSTED
PREMIUMS AND PRESENT VALUES REFERRED TO IN THIS SUBTITLE SHALL BE
CALCULATED BASED ON THE 1941 STANDARD INDUSTRIAL MORTALITY TABLE.

(4)      ADJUSTED PREMIUMS AND PRESENT VALUES SHALL BE
CALCULATED AT AN INTEREST RATE, NOT EXCEEDING A RATE OF 3.5% PER YEAR,
SPECIFIED IN THE POLICY FOR CALCULATING CASH SURRENDER VALUES AND
PAID-UP NONFORFEITURE VALUES.

(5)      IN THE CALCULATION OF THE PRESENT VALUE OF PAID-UP TERM
INSURANCE WITH ANY ACCOMPANYING PURE ENDOWMENT OFFERED AS A
NONFORFEITURE BENEFIT, THE RATES OF MORTALITY ASSUMED MAY NOT EXCEED
130% OF THE RATES OF MORTALITY ACCORDING TO THE APPLICABLE TABLE.

(6)   . IN THE CALCULATION OF ADJUSTED PREMIUMS AND PRESENT
VALUES FOR INSURANCE ISSUED ON A SUBSTANDARD BASIS, THE ADJUSTED
PREMIUMS AND PRESENT VALUES MAY BE CALCULATED BASED ON ANOTHER
MORTALITY TABLE SPECIFIED BY THE INSURER AND APPROVED BY THE
COMMISSIONER.

(C)      1958 STANDARD ORDINARY MORTALITY TABLE.

- 414 -