PARRIS N. GLENDENING, Governor

Ch. 11

A DEFERRED ANNUITY CONTRACT NEED NOT PROVIDE FOR PARTICIPATION IN
SURPLUS AFTER ANNUITY PAYMENTS BEGIN.

(D) ADDITIONAL DIVIDEND OPTIONS.

THIS SECTION DOES NOT PROHIBIT AN INSURER FROM GRANTING TO THE
PARTY ENTITLED TO THE DIVIDEND THE RIGHT TO ELECT ANOTHER DIVIDEND
OPTION OFFERED BY THE INSURER IN ADDITION TO THE OPTIONS REQUIRED BY
THIS SECTION, WHETHER OR NOT THE ADDITIONAL OPTION IS SPECIFIED IN THE
CONTRACT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 407.

Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101
"Insurer" § 1-101

16-407. REINSTATEMENT.

(A)     IN GENERAL.

EACH ANNUITY CONTRACT AND EACH PURE ENDOWMENT CONTRACT SHALL
CONTAIN A PROVISION THAT, UNLESS THE CASH SURRENDER VALUE HAS BEEN
PAID, THE CONTRACT MAY BE REINSTATED, WITHIN 1 YEAR AFTER DEFAULT IN
MAKING STIPULATED PAYMENTS TO THE INSURER, ON THE PAYMENT OF ALL
OVERDUE STIPULATED PAYMENTS AND THE PAYMENT OR REINSTATEMENT OF ANY
OTHER INDEBTEDNESS TO THE INSURER ON THE CONTRACT, WITH INTEREST ON
THE PAYMENTS AND OTHER INDEBTEDNESS AT A RATE SPECIFIED IN THE
CONTRACT NOT EXCEEDING 6% PER YEAR.

(B)     EVIDENCE OF INSURABILITY.

IF APPLICABLE, THE INSURER MAY REQUIRE EVIDENCE OF INSURABILITY
SATISFACTORY TO THE INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 408.

In subsection (a) of this section, the former reference to reinstatement "at any
time" within a specified period is deleted as unnecessary in light of the specific
reference to reinstatement "within 1 year".

Also in subsection (a) of this section, the former reference to interest "payable
annually" is deleted as included in the reference to 6% "per year".

Defined terms: "Annuity contract" § 1-101
"Insurer" § 1-101

16-408. REQUIRED PROVISIONS FOR REVERSIONARY ANNUITY CONTRACTS.
(A) IN GENERAL.

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