PARRIS N. GLENDENING, Governor

Ch. 11

(I)      FOR POLICIES OF ORDINARY LIFE INSURANCE, THE
COMMISSIONERS 1980 EXTENDED TERM INSURANCE TABLE; AND

(II)     FOR POLICIES OF INDUSTRIAL LIFE INSURANCE, THE
COMMISSIONERS 1961 INDUSTRIAL EXTENDED TERM INSURANCE TABLE.

(4)     THE CALCULATION OF ADJUSTED PREMIUMS AND PRESENT VALUES
FOR INSURANCE ISSUED ON A SUBSTANDARD BASIS MAY BE BASED ON
APPROPRIATE MODIFICATIONS OF THE TABLES REQUIRED UNDER THIS SECTION.

(5)     IN DETERMINING THE MINIMUM NONFORFEITURE STANDARD, AN
INSURER MAY SUBSTITUTE AN ORDINARY MORTALITY TABLE ADOPTED AFTER 1980
BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS AND APPROVED
BY REGULATION OF THE COMMISSIONER FOR THE COMMISSIONERS 1980 STANDARD
ORDINARY MORTALITY TABLE, WITH OR WITHOUT 10-YEAR SELECT MORTALITY
FACTORS OR FOR THE COMMISSIONERS 1980 EXTENDED TERM INSURANCE TABLE.

(6)      IN DETERMINING THE MINIMUM NONFORFEITURE STANDARD, AN
INSURER MAY SUBSTITUTE AN INDUSTRIAL MORTALITY TABLE ADOPTED AFTER
1980 BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS AND
APPROVED BY REGULATION OF THE COMMISSIONER FOR THE COMMISSIONERS 1961
STANDARD INDUSTRIAL MORTALITY TABLE OR FOR THE COMMISSIONERS 1961
INDUSTRIAL EXTENDED TERM INSURANCE TABLE.

(J) NONFORFEITURE INTEREST RATE.

THE NONFORFEITURE INTEREST RATE PER YEAR FOR A POLICY ISSUED
DURING A CALENDAR YEAR SHALL EQUAL 125% OF THE CALENDAR YEAR
STATUTORY VALUATION INTEREST RATE FOR THE POLICY, IN ACCORDANCE WITH
THE STANDARD VALUATION LAW, SET FORTH IN TITLE 5, SUBTITLE 3 OF THIS
ARTICLE, ROUNDED TO THE NEAREST 0.25%.

(K) REFILING REQUIREMENTS.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, AN INSURER
THAT REFILES NONFORFEITURE VALUES OR REFILES THE METHOD OF
CALCULATING NONFORFEITURE VALUES FOR A POLICY FORM THAT HAS BEEN
PREVIOUSLY APPROVED NEED NOT REFILE ANY OTHER PROVISION OF THE POLICY
FORM IF THE REFILING ONLY INVOLVES A CHANGE IN THE INTEREST RATE OR
MORTALITY TABLE USED TO CALCULATE NONFORFEITURE VALUES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 414(k-1).

Subsection (a) of this section is revised to state the scope of this section
because the contingent application window is now closed. Therefore,
provisions in former Art. 48A, § 414(k-1) that authorize an insurer to file a
certain notice to subject policies to the provisions of this section are deleted as
obsolete.

In subsection (b)(2)(iii) of this section, the phrase, "subject to paragraphs (4)
and (5) of this subsection" is added for clarity.

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