Ch. 11

1996 LAWS OF MARYLAND

A CONTRACT FOR A REVERSIONARY OR SURVIVORSHIP ANNUITY MAY NOT BE
DELIVERED OR ISSUED FOR DELIVERY IN THE STATE UNLESS IT CONTAINS IN
SUBSTANCE EACH PROVISION REQUIRED BY THIS SECTION.

(B)     STANDARD PROVISIONS.

(1)      EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
EACH CONTRACT FOR A REVERSIONARY OR SURVIVORSHIP ANNUITY SHALL
INCLUDE EACH PROVISION SPECIFIED IN §§ 16-402 THROUGH 16-406 OF THIS
SUBTITLE.

(2)      AS TO THE PROVISION REQUIRED BY § 16-402(D) OF THIS SUBTITLE,
THE INSURER MAY PROVIDE FOR AN EQUITABLE REDUCTION OF THE AMOUNT OF
ANNUITY PAYMENTS IN SETTLEMENT OF AN OVERDUE PAYMENT INSTEAD OF
PROVIDING FOR DEDUCTION OF PAYMENTS FROM AN AMOUNT PAYABLE ON
SETTLEMENT UNDER THE CONTRACT.

(C)     REINSTATEMENT.

EACH CONTRACT FOR A REVERSIONARY OR SURVIVORSHIP ANNUITY SHALL
CONTAIN A PROVISION THAT THE CONTRACT MAY BE REINSTATED WITHIN 3 YEARS
AFTER THE DATE OF DEFAULT IN MAKING STIPULATED PAYMENTS TO THE
INSURER, ON:

(1)      THE PRODUCTION OF EVIDENCE OF INSURABILITY SATISFACTORY
TO THE INSURER; AND

(2)      (I) THE PAYMENT OF ALL OVERDUE PAYMENTS AND ANY
INDEBTEDNESS TO THE INSURER ON THE CONTRACT WITH INTEREST AT A RATE
SPECIFIED IN THE CONTRACT NOT EXCEEDING 6% PER YEAR COMPOUNDED
ANNUALLY; OR

(II) THE REINSTATEMENT AS INDEBTEDNESS ON THE CONTRACT
OF THE AMOUNT STATED IN SUBITEM (I) OF THIS ITEM, IF THIS AMOUNT IS WITHIN
THE LIMITS ALLOWED BY THE THEN CASH VALUE OF THE CONTRACT.

(D)     APPLICABILITY OF SECTION.

(1)      THIS SECTION DOES NOT APPLY TO GROUP ANNUITIES OR TO
ANNUITIES INCLUDED IN POLICIES OF LIFE INSURANCE.

(2)      TO THE EXTENT THAT A PROVISION REQUIRED BY THIS SECTION
DOES NOT APPLY TO A SINGLE PREMIUM ANNUITY, THE PROVISION NEED NOT BE
INCORPORATED IN THE CONTRACT.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 409.

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

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