Ch. 11

1996 LAWS OF MARYLAND

(I)       ON OR AFTER JANUARY 1, 1968, BUT BEFORE THE OPERATIVE
DATE OF § 16-309 OF THIS SUBTITLE; OR

(II)     ON AN OPERATIVE DATE FROM JANUARY 1, 1964, TO
DECEMBER 31, 1967, BOTH INCLUSIVE, AS SPECIFIED BY THE INSURER IF THE
INSURER FILED WITH THE COMMISSIONER WRITTEN NOTICE OF AN ELECTION TO
COMPLY WITH THIS SUBSECTION ON A DATE BEFORE JANUARY 1, 1968.

(2) FOR POLICIES OF INDUSTRIAL LIFE INSURANCE, THE ADJUSTED
PREMIUMS AND PRESENT VALUES REFERRED TO IN THIS SUBTITLE SHALL BE
CALCULATED BASED ON THE COMMISSIONERS 1961 STANDARD INDUSTRIAL
MORTALITY TABLE AND THE RATE OF INTEREST SPECIFIED IN THE POLICY FOR
CALCULATING CASH SURRENDER VALUES AND PAID-UP NONFORFEITURE
BENEFITS.

(3)      ADJUSTED PREMIUMS AND PRESENT VALUES SHALL BE
CALCULATED AT AN INTEREST RATE SPECIFIED IN THE POLICY FOR CALCULATING
CASH SURRENDER VALUES AND PAID-UP NONFORFEITURE BENEFITS, NOT
EXCEEDING A RATE OF:

(I)       3.5% PER YEAR FOR POLICIES ISSUED ON OR BEFORE JUNE 30,
1978;

(II)     4% PER YEAR FOR POLICIES ISSUED FROM JULY 1, 1978 TO JUNE
30, 1980, BOTH INCLUSIVE; OR

(III)    5.5% PER YEAR FOR POLICIES ISSUED ON OR AFTER JULY 1,
1980.

(4)      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
THE RATES IN THE COMMISSIONERS 1961 INDUSTRIAL EXTENDED TERM INSURANCE
TABLE.

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

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

Subsections (c)(1) and (d)(1) of this section are revised to state the applicable
scope of each subsection because the contingent application window for each
subsection is now closed. Therefore, provisions of former Art. 48A, § 414(j)
and (k) that authorize an insurer to file a certain notice to subject policies to
these provisions are deleted as obsolete.

In subsections (c)(3)(i) and (d)(3)(i) of this section, the words "on or before
June 30, 1978" are added for clarity.

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