Ch. 11

1996 LAWS OF MARYLAND

(2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE
ADJUSTED PREMIUMS AND PRESENT VALUES FOR A SUBSTANDARD POLICY
SUBJECT TO THIS SUBSECTION MAY BE CALCULATED AS IF THE POLICY WAS ISSUED
TO PROVIDE THE HIGHER UNIFORM AMOUNTS OF INSURANCE ON THE STANDARD
BASIS.

(H) MORTALITY TABLES AND RATE OF INTEREST.

(1)      (I) FOR POLICIES OF ORDINARY LIFE INSURANCE, THE ADJUSTED
PREMIUMS AND PRESENT VALUES REFERRED TO IN THIS SUBTITLE SHALL BE
CALCULATED BASED ON:

1.        THE COMMISSIONERS 1980 STANDARD ORDINARY
MORTALITY TABLE; OR

2.        AT THE ELECTION OF THE INSURER FOR ONE OR MORE
SPECIFIED LIFE INSURANCE PLANS, THE COMMISSIONERS' 1980 STANDARD
ORDINARY MORTALITY TABLE WITH 10-YEAR SELECT MORTALITY FACTORS.

(II) 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.

(2)      ADJUSTED PREMIUMS AND PRESENT VALUES FOR POLICIES ISSUED
IN ANY CALENDAR YEAR SHALL BE CALCULATED BASED ON AN INTEREST RATE
THAT DOES NOT EXCEED THE NONFORFEITURE INTEREST RATE CALCULATED
UNDER THIS SECTION:

(I)       FOR THAT CALENDAR YEAR; OR

(II)     AT THE OPTION OF THE INSURER, FOR THE IMMEDIATELY
PRECEDING CALENDAR YEAR.

(I) . MISCELLANEOUS PROVISIONS.

(1)      ANY CASH SURRENDER VALUE AVAILABLE UNDER A PAID-UP
NONFORFEITURE BENEFIT, INCLUDING ANY PAID-UP DIVIDEND ADDITIONS,
REGARDLESS OF WHETHER REQUIRED UNDER § 16-303 OF THIS SUBTITLE, SHALL BE
CALCULATED BASED ON THE MORTALITY TABLE AND INTEREST RATE USED TO
DETERMINE THE AMOUNT OF THE PAID-UP NONFORFEITURE BENEFIT AND ANY
PAID-UP DIVIDEND ADDITIONS.

(2)      AN INSURER MAY NOT CALCULATE THE AMOUNT OF ANY
GUARANTEED PAID-UP NONFORFEITURE BENEFIT INCLUDING ANY PAID-UP
ADDITIONS UNDER THE POLICY BASED ON AN INTEREST RATE LOWER THAN THE
RATE SPECIFIED IN THE POLICY FOR CALCULATING CASH SURRENDER VALUES.

(3)      IN CALCULATING THE PRESENT VALUE OF ANY PAID-UP TERM
INSURANCE WITH ANY ACCOMPANYING PURE ENDOWMENT OFFERED AS A
NONFORFEITURE BENEFIT, AN INSURER MAY NOT ASSUME A MORTALITY RATE
GREATER THAN THE MORTALITY RATES SHOWN IN:

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