PARRIS N. GLENDENING, Governor

Ch. 11

(1)     THE RIGHT TO HAVE ISSUED TO THE INSURED AN INDIVIDUAL
POLICY OF LIFE INSURANCE ARISING FROM CONVERSION AS SET FORTH IN §§ 17-309
THROUGH 17-311 OF THIS TITLE; AND

(2)     THE RIGHT TO NAME A BENEFICIARY.

(B) EFFECT.

AN ASSIGNMENT MADE UNDER THIS SECTION, EVEN IF MADE BEFORE THE
EFFECTIVE DATE OF THIS SECTION:

(1)     VESTS IN THE ASSIGNEE ALL RIGHTS AND BENEFITS THAT ARE
ASSIGNED; AND

(2)     ENTITLES THE INSURER TO DEAL WITH THE ASSIGNEE AS THE
OWNER OF ALL RIGHTS AND BENEFITS CONFERRED ON THE INSURED UNDER THE
POLICY:

(I)      IN ACCORDANCE WITH THE TERMS OF THE ASSIGNMENT; BUT

(II)    WITHOUT PREJUDICE TO THE INSURER ON ACCOUNT OF A
PAYMENT THE INSURER MAKES OR AN INDIVIDUAL POLICY THE INSURER ISSUES
ARISING FROM CONVERSION OF THE POLICY BEFORE RECEIPT AT THE INSURER'S
HOME OFFICE OF NOTICE OF THE ASSIGNMENT.

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

In the introductory language of subsection (a) of this section, the phrase "but
not by way of limitation", which formerly modified "including", is deleted as
unnecessary in light of Art. 1, § 30 of the Code, which provides that the term
"including" is used by way of illustration and not by way of limitation.

In the introductory language of subsection (b) of this section, the reference to
an assignment "even if made before the effective date of this section" is
substituted for the former reference to an assignment "whether made before
or after the effective date hereof because a reference to an assignment made
after the effective date of this section is unnecessary. Such an assignment
would of course be governed by this section.

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

SUBTITLE 2. GROUP REQUIREMENTS.

17-201. EMPLOYERS.

(A) IN GENERAL.

(1) SUBJECT TO THE REQUIREMENTS OF THIS SECTION, THE LIVES OF A
GROUP OF INDIVIDUALS MAY BE INSURED UNDER A POLICY ISSUED TO AN

- 449 -