Ch. 11                                          1996 LAWS OF MARYLAND

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

The word "Maryland" is added to conform to other short titles throughout the
revised articles of the Code.

SUBTITLE 6. VARIABLE CONTRACTS.
16-601. AUTHORITY TO ISSUE VARIABLE CONTRACTS.

(A)     IN GENERAL.

(1)      A STOCK INSURER OR MUTUAL INSURER MAY ISSUE INDIVIDUAL
AND GROUP VARIABLE LIFE INSURANCE CONTRACTS THAT PROVIDE FOR PAYMENT
VARYING DIRECTLY WITH THE INVESTMENT EXPERIENCE OF A SEGREGATED ASSET
ACCOUNT IF THE STOCK INSURER OR MUTUAL INSURER:

(I) IS AUTHORIZED TO ISSUE LIFE INSURANCE CONTRACTS IN THE
STATE; AND

(II) IS AUTHORIZED BY THE COMMISSIONER TO ISSUE INDIVIDUAL
AND GROUP VARIABLE LIFE INSURANCE CONTRACTS.

(2)      A STOCK INSURER OR MUTUAL INSURER MAY ISSUE INDIVIDUAL
AND GROUP VARIABLE ANNUITY CONTRACTS THAT PROVIDE FOR PAYMENT
VARYING DIRECTLY WITH THE INVESTMENT EXPERIENCE OF A SEGREGATED ASSET
ACCOUNT IF THE STOCK INSURER OR MUTUAL INSURER:

(I)      IS AUTHORIZED TO ISSUE ANNUITY CONTRACTS IN THE STATE;
AND

(II)     IS AUTHORIZED BY THE COMMISSIONER TO ISSUE INDIVIDUAL
AND GROUP VARIABLE ANNUITY CONTRACTS.

(B)     COMPLIANCE WITH REGULATIONS REQUIRED.

TO BE AUTHORIZED TO ISSUE VARIABLE CONTRACTS, A STOCK INSURER OR
MUTUAL INSURER SHALL COMPLY WITH REGULATIONS ADOPTED BY THE
COMMISSIONER.

(C)     CONTENT OF REGULATIONS.

THE REGULATIONS OF THE COMMISSIONER MAY INCLUDE:

(1)      REQUIREMENTS FOR A MINIMUM CAPITAL AND SURPLUS IN EXCESS
OF THE AMOUNT OTHERWISE REQUIRED FOR THE ISSUANCE OF LIFE INSURANCE
CONTRACTS AND ANNUITY CONTRACTS THAT ARE NOT VARIABLE CONTRACTS;
AND

(2)      OTHER REQUIREMENTS THAT THE COMMISSIONER CONSIDERS
APPROPRIATE TO SAFEGUARD THE INTERESTS OF VARIABLE CONTRACT HOLDERS,
OTHER POLICYHOLDERS, INSURERS, AND THE PUBLIC.

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