Ch. 11                                          1996 LAWS OF MARYLAND

(4)      BENEFITS PAYABLE AS A REVERSIONARY ANNUITY OR DEFERRED
REVERSIONARY ANNUITY BENEFITS;

(5)      BENEFITS FOR LONG-TERM HOME HEALTH CARE AND LONG-TERM
CARE IN A NURSING HOME OR SIMILAR INSTITUTION;

(6)      TERM INSURANCE BENEFITS PROVIDED BY A RIDER OR
SUPPLEMENTAL POLICY PROVISION IF THIS SUBTITLE WOULD NOT APPLY HAD THE
RIDER OR SUPPLEMENTAL POLICY PROVISION BEEN ISSUED AS A SEPARATE POLICY;

(7)      TERM INSURANCE BENEFITS PAYABLE ON THE LIFE OF A CHILD
PROVIDED IN A POLICY ON THE LIFE OF A PARENT OF THE CHILD IF THE TERM
INSURANCE:

(I)       EXPIRES BEFORE THE CHILD TURNS 26 YEARS OLD;

(II)     IS A UNIFORM AMOUNT AFTER THE CHILD IS 1 YEAR OLD;

(III)    HAS NOT BECOME PAID-UP DUE TO THE DEATH OF A PARENT
OF THE CHILD; AND

(8)      OTHER POLICY BENEFITS ADDITIONAL TO LIFE INSURANCE OR
ENDOWMENT BENEFITS.

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

In the introductory language of subsection (d)(7) of this section, the former
phrase "or on the lives of children" is deleted as unnecessary in light of Art. 1,
§ 8 of the Code which provides that "[t]he singular always includes the plural
... except where such construction would be unreasonable."

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

16-312. CASH SURRENDER VALUES — POLICIES ISSUED ON OR AFTER JANUARY 1,
1986.

(A)     SCOPE OF SECTION.

THIS SECTION APPLIES TO POLICIES OF LIFE INSURANCE ISSUED ON OR AFTER
JANUARY 1, 1986, AND IS IN ADDITION TO ANY OTHER APPLICABLE PROVISIONS OF
THIS SUBTITLE.

(B)      IN GENERAL.

ON DEFAULT OF A PREMIUM PAYMENT DUE ON A POLICY ANNIVERSARY, ANY
CASH SURRENDER VALUE AVAILABLE UNDER THE POLICY MAY NOT DIFFER FROM
THE SUM OF THE GREATER OF THE BASIC CASH VALUE CALCULATED IN
ACCORDANCE WITH SUBSECTION (C) OF THIS SECTION AND ZERO AND THE

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