Ch. 11

1996 LAWS OF MARYLAND

NOTWITHSTANDING § 17-308 OF THIS TITLE, ONLY ONE CERTIFICATE MUST BE
ISSUED FOR EACH FAMILY UNIT IF A STATEMENT ABOUT A DEPENDENT'S
COVERAGE IS INCLUDED IN THE CERTIFICATE.

(E) PLAN TO PRECLUDE INDIVIDUAL CHOICE.

THE AMOUNTS OF INSURANCE UNDER THE POLICY MUST BE BASED ON A PLAN
THAT PRECLUDES INDIVIDUAL CHOICE BY THE EMPLOYEES OR MEMBERS OR BY
THE EMPLOYER OR TRUSTEES.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 422A.

In subsection (a)(1) of this section, the former reference to "then" insured
employees is deleted as surplusage.

Defined terms: "Insurance" § 1-101
"Life insurance" § 1-101
"Policy" § 1-101
"Premium" § 1-101

SUBTITLE 3. GROUP LIFE INSURANCE POLICY PROVISIONS.
17-301. STANDARD PROVISIONS REQUIRED; EXCEPTIONS.

(A)     STANDARD PROVISIONS REQUIRED.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, A POLICY OF
GROUP LIFE INSURANCE MAY NOT BE DELIVERED IN THE STATE UNLESS IT
CONTAINS IN SUBSTANCE:

(1)      THE PROVISIONS OF §§ 17-302 THROUGH 17-311 OF THIS SUBTITLE; OR

(2)      PROVISIONS THAT IN THE OPINION OF THE COMMISSIONER ARE:

(I)       MORE FAVORABLE TO THE INSUREDS; OR

(II)     AT LEAST AS FAVORABLE TO THE INSUREDS AND MORE
FAVORABLE TO THE POLICYHOLDER.

(B)     EXCEPTIONS.

(1)      SECTIONS 17-307 THROUGH 17-311 OF THIS SUBTITLE DO NOT APPLY
TO POLICIES ISSUED TO A CREDITOR TO INSURE DEBTORS OF THE CREDITOR.

(2)      THE STANDARD PROVISIONS REQUIRED FOR INDIVIDUAL LIFE
INSURANCE POLICIES DO NOT APPLY TO POLICIES OF GROUP LIFE INSURANCE.

(3)      IF A POLICY OF GROUP LIFE INSURANCE IS ON A PLAN OTHER THAN
THE TERM PLAN, THE POLICY:

(I) SHALL CONTAIN A NONFORFEITURE PROVISION THAT IN THE
OPINION OF THE COMMISSIONER IS EQUITABLE TO THE INSURED AND THE
POLICYHOLDER; BUT

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