PARRIS N. GLENDENING, Governor

Ch. 11

(C)     CASH SURRENDER BENEFIT.

(1)      EACH ANNUITY CONTRACT SHALL CONTAIN A PROVISION THAT IF
THE ANNUITY CONTRACT PROVIDES FOR A LUMP-SUM SETTLEMENT AT MATURITY
OR AT ANY OTHER TIME, ON SURRENDER OF THE ANNUITY CONTRACT ON OR
BEFORE THE START OF ANNUITY PAYMENTS, THE INSURER WILL PAY A CASH
SURRENDER BENEFIT IN ACCORDANCE WITH §§ 16-505, 16-506, 16-508, AND 16-509 OF
THIS SUBTITLE INSTEAD OF A PAID-UP ANNUITY BENEFIT.

(2)      THE ANNUITY CONTRACT SHALL STATE THAT THE INSURER SHALL
RESERVE THE RIGHT TO DEFER THE PAYMENT OF THE CASH SURRENDER VALUE
FOR UP TO 6 MONTHS AFTER DEMAND FOR PAYMENT WITH SURRENDER OF THE
ANNUITY CONTRACT.

(D)     GUARANTEED BENEFITS — CALCULATION INFORMATION.

EACH ANNUITY CONTRACT SHALL CONTAIN A STATEMENT OF ANY
MORTALITY TABLE AND INTEREST RATES USED TO CALCULATE ANY MINIMUM
PAID-UP ANNUITY, CASH SURRENDER, OR DEATH BENEFITS, GUARANTEED BY THE
ANNUITY CONTRACT AND SHALL PROVIDE SUFFICIENT INFORMATION TO
DETERMINE THE BENEFIT AMOUNTS.

(E)     SAME — MINIMUM AMOUNTS; ALTERATION.

(1)      EACH ANNUITY CONTRACT SHALL CONTAIN A STATEMENT THAT
ANY PAID-UP ANNUITY, CASH SURRENDER, OR DEATH BENEFITS AVAILABLE
UNDER THE ANNUITY CONTRACT ARE NOT LESS THAN THE MINIMUM BENEFITS
REQUIRED UNDER THIS ARTICLE.

(2)      EACH ANNUITY CONTRACT SHALL CONTAIN AN EXPLANATION HOW
BENEFITS ARE ALTERED DUE TO ANY ADDITIONAL AMOUNT THAT THE INSURER
CREDITS TO THE ANNUITY CONTRACT, ANY INDEBTEDNESS TO THE INSURER ON
THE ANNUITY CONTRACT, AND ANY PRIOR WITHDRAWAL FROM OR PARTIAL
SURRENDER OF THE ANNUITY CONTRACT.

(F)      CERTAIN BENEFITS NOT PROVIDED.

IF AN ANNUITY CONTRACT DOES NOT PROVIDE CASH SURRENDER BENEFITS
OR DOES NOT PROVIDE DEATH BENEFITS THAT EQUAL AT LEAST THE MINIMUM
NONFORFEITURE AMOUNT BEFORE THE START OF ANNUITY PAYMENTS, THE
ANNUITY CONTRACT SHALL CONTAIN A PROVISION THAT SO STATES IN A
PROMINENT PLACE IN THE ANNUITY CONTRACT.

(G)     TERMINATION OF CONTRACTS IN DEFAULT.

(1) NOTWITHSTANDING THE REQUIREMENTS OF THIS SECTION, A
DEFERRED ANNUITY CONTRACT MAY CONTAIN A PROVISION THAT THE INSURER
MAY TERMINATE THE CONTRACT BY MAKING A SINGLE PAYMENT CALCULATED
UNDER PARAGRAPH (2) OF THIS SUBSECTION IF:

(I) NO CONSIDERATIONS HAVE BEEN RECEIVED UNDER THE
CONTRACT FOR 2 YEARS; AND

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