Ch. 11

1996 LAWS OF MARYLAND

(C) MINIMUM INTEREST RATE.

INTEREST UNDER THIS SECTION SHALL ACCRUE AND BE PAYABLE AT A RATE
NOT LESS THAN THE RATE OF INTEREST PAYABLE ON DEATH PROCEEDS LEFT ON
DEPOSIT WITH THE INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 418A.

In subsection (b)(1) of this section, the reference to the "insured" is
substituted for the former reference to the "certificate holder" to conform to
language used in subsections (a) and (b)(2) of this section.

In subsection (b)(2) of this section, the word "accrue" is substituted for the
former word "accumulate" to conform to language used in subsections (a) and
(c) of this section.

Also in subsection (b)(2) of this section, the former references to "due" proof
of death are deleted as surplusage.

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

17-103. STATEMENT TO INSURED DEBTORS.

AN INSURER THAT ISSUES A POLICY TO A CREDITOR TO INSURE DEBTORS OF
THE CREDITOR SHALL PROVIDE TO THE CREDITOR FOR DELIVERY TO EACH
DEBTOR INSURED UNDER THE POLICY A FORM THAT STATES THAT:

(1)     THE LIFE OF THE DEBTOR IS INSURED UNDER THE POLICY; AND

(2)     A DEATH BENEFIT PAID UNDER THE POLICY BECAUSE OF THE
DEBTOR'S DEATH SHALL BE APPLIED TO REDUCE OR EXTINGUISH THE
INDEBTEDNESS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 436A.

In the introductory language of this section, the reference to the "creditor" is
substituted for the former reference to the "policyholder" for consistency. See
§ 17-206(a)(2) of this title.

Defined terms: "Insurer" § 1-101
"Policy" § 1-101

17-104. ASSIGNMENT OF RIGHTS AND BENEFITS.

(A) AUTHORIZED.

AN INSURED UNDER A POLICY OF GROUP LIFE INSURANCE, IN ACCORDANCE
WITH AN ARRANGEMENT AMONG THE INSURED, THE GROUP POLICYHOLDER, AND
THE INSURER, MAY ASSIGN TO ANY PERSON ANY OR ALL OF THE RIGHTS AND
BENEFITS CONFERRED ON THE INSURED BY THE POLICY OR BY LAW, INCLUDING:

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