Ch. 11

1996 LAWS OF MARYLAND

(II) THE PART OF THE PAID-UP ANNUITY BENEFIT AT MATURITY
UNDER THE CONTRACT THAT IS AVAILABLE FROM THE CONSIDERATIONS PAID
BEFORE TERMINATION WOULD BE LESS THAN $20 PER MONTH.

(2) THE PAYMENT SHALL EQUAL THE PRESENT VALUE OF THE PART OF
THE PAID-UP ANNUITY BENEFIT AVAILABLE UNDER THE CONTRACT, CALCULATED
AS OF THE DATE OF TERMINATION, BASED ON ANY MORTALITY TABLE AND
INTEREST RATE SPECIFIED IN THE CONTRACT FOR DETERMINING THE PAID-UP
ANNUITY BENEFIT.

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

In the introductory language of subsection (a) of this section, the former
phrase "except as stated in [former] subsection (b)" is deleted as unnecessary.
The former exception now appears as a scope provision in § 16-501 of this
subtitle. Similarly, the former phrase "as defined in [former] subsection (j)" is
. deleted as unnecessary in light of § 16-502 of this subtitle.

In subsection (a)(1) of this section, the word "applicable" is added for clarity.

In subsections (b), (c), (e)(2), and the introductory language of (g)(1) of this
section, the term "insurer" is substituted for the former term "company" for
consistency.                                                                   

In subsection (b) of this section, the reference to a value "in compliance with"
is substituted for the former reference to a value "as is specified" in certain
provisions for brevity. Similarly, in subsection (c)(1) of this section, the
reference to a cash surrender benefit "in accordance with" certain provisions
is substituted for the former reference to a cash surrender benefit "of such
amount as is specified".'

In subsection (c)(2) of this section, the phrase "up to 6 months" is substituted
for the former phrase "for a period of 6 months" to clarify that the deferral
may be up to, but not exceeding, 6 months.

In subsection (e)(1) of this section, the reference to "this article" is
substituted for the former reference to the "law of the State in which the
contract is delivered" for accuracy and clarity.

In subsection (f) of this section, the requirement that the contract shall "so
state[s]" is substituted for the former required statement in the contract "that
such benefits are not provided" for brevity.

In the introductory language of subsection (g)(1) of this section, the phrase
"[n]otwithstanding the requirements of this section" is retained although the
reference to former Art. 48A, § 408B now encompasses this subtitle. The
former reference to the entire section appeared erroneous in light of the
reference to the provisions codified as former Art. 48A, § 408B(c) in the
standard act adopted by the NAIC.

Also in the introductory language of subsection (g)(1) of this section, the

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