PARRIS N. GLENDENING, Governor

Ch. 11

Subsection (a) of this section is revised as a scope provision to clarify the
application of this section.

In subsection (a)(2) of this section, the reference to a determination "under
the applicable provisions of §§ 16-303 through 16-309" is substituted for the
former reference to determination by the "methods described in [former]
subsections (b) through (k-1)" to clarify that all of the referenced provisions
would not otherwise apply. The application of the cited provisions would
depend on when a policy was issued.

Defined terms: "Commissioner" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Premium" § 1-101

16-311. MISCELLANEOUS CALCULATION PROVISIONS.

(A)     PREMIUM DEFAULT AT TIME OTHER THAN POLICY ANNIVERSARY.

ON DEFAULT OF A PREMIUM PAYMENT DUE ON A POLICY OF LIFE INSURANCE
AT A TIME OTHER THAN THE POLICY ANNIVERSARY, ANY CASH SURRENDER VALUE
AND PAID-UP NONFORFEITURE BENEFIT AVAILABLE UNDER THE POLICY SHALL BE
CALCULATED WITH AN ALLOWANCE FOR THE LAPSE OF TIME AND THE PAYMENT
OF ANY FRACTIONAL PREMIUMS SINCE THE IMMEDIATELY PRECEDING POLICY
ANNIVERSARY.

(B)     DEATH BENEFIT PAYABLE AT END OF POLICY YEAR OF DEATH.

VALUES REFERRED TO IN §§ 16-305 THROUGH 16-309 OF THIS SUBTITLE MAY BE
CALCULATED ON THE ASSUMPTION THAT A DEATH BENEFIT IS PAYABLE AT THE
END OF THE POLICY YEAR OF DEATH.

(C)     NET VALUE OF PAID-UP ADDITIONS.

THE NET VALUE OF ANY PAID-UP ADDITIONS, OTHER THAN PAID-UP TERM
ADDITIONS, MAY NOT BE LESS THAN THE AMOUNTS USED TO PROVIDE THE
ADDITIONS.

(D)     EXCLUSIONS IN CALCULATING CASH SURRENDER VALUES^: AND
NONFORFEITURE BENEFITS.

NOTWITHSTANDING § 16-305 OF THIS SUBTITLE, THE FOLLOWING ADDITIONAL
BENEFITS AND PREMIUMS FOR THE BENEFITS SHALL BE DISREGARDED WHEN
CALCULATING CASH SURRENDER VALUES AND NONFORFEITURE BENEFITS
REQUIRED UNDER THIS SUBTITLE AND NEED NOT BE INCLUDED IN ANY PAID-UP
NONFORFEITURE BENEFITS:

(1)      BENEFITS PAYABLE FOR DEATH BY ACCIDENT OR ACCIDENTAL

MEANS;

(2)      BENEFITS PAYABLE FOR DISMEMBERMENT OR LOSS OF SIGHT;

(3)      BENEFITS PAYABLE FOR TOTAL AND PERMANENT DISABILITY;

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