Ch. 11

1996 LAWS. OF MARYLAND

substituted for the former reference "at that time" for clarity.

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

16-508. CONTRACTS WITH OPTIONAL MATURITY DATES.

(A)     APPLICABILITY OF SECTION.

THIS SECTION APPLIES TO A DETERMINATION OF THE BENEFITS CALCULATED
UNDER § 16-506 OR § 16-507 OF THIS SUBTITLE FOR AN ANNUITY CONTRACT THAT
ALLOWS AN ELECTION TO HAVE ANNUITY PAYMENTS BEGIN AT OPTIONAL
MATURITY DATES.

(B)     DETERMINATION OF MATURITY DATE.

THE MATURITY DATE OF AN ANNUITY CONTRACT DESCRIBED IN SUBSECTION
(A) OF THIS SECTION SHALL BE DEEMED TO BE THE LATEST DATE FOR WHICH AN
ELECTION IS ALLOWED UNDER THE CONTRACT, BUT MAY NOT BE LATER THAN THE
LATER OF THE CONTRACT ANNIVERSARY IMMEDIATELY FOLLOWING THE
ANNUITANT'S 70TH BIRTHDAY OR THE TENTH ANNIVERSARY OF THE CONTRACT.

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

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

16-509. MISCELLANEOUS CALCULATION PROVISIONS.

(A) BENEFITS AVAILABLE OTHER THAN ON CONTRACT ANNIVERSARY.

ANY PAID-UP ANNUITY, CASH SURRENDER, OR DEATH BENEFITS AVAILABLE
AT. ANY TIME OTHER THAN ON A CONTRACT ANNIVERSARY UNDER AN ANNUITY
CONTRACT WITH FIXED SCHEDULED CONSIDERATIONS SHALL BE CALCULATED
WITH AN ALLOWANCE FOR THE LAPSE OF TIME AND THE PAYMENT OF ANY
SCHEDULED CONSIDERATIONS AFTER THE START OF THE CONTRACT YEAR IN
WHICH PAYMENT OF CONSIDERATIONS STOPS.

(B) CONTRACTS WITH ANNUITY AND LIFE INSURANCE BENEFITS — MINIMUM
NONFORFEITURE BENEFITS.

(1)      THIS SUBSECTION APPLIES ONLY TO AN ANNUITY CONTRACT THAT
PROVIDES BY RIDER OR SUPPLEMENTAL CONTRACT PROVISION BOTH ANNUITY
BENEFITS AND LIFE INSURANCE BENEFITS THAT EXCEED THE GREATER OF:

(I)       THE CASH SURRENDER BENEFITS; OR

(II)     A RETURN OF THE GROSS CONSIDERATIONS WITH INTEREST.

(2)      THE MINIMUM NONFORFEITURE BENEFITS SHALL:

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