PARRIS N. GLENDENING, Governor

Ch. 11

17-306. MISSTATEMENT OF AGE.

EACH POLICY OF GROUP LIFE INSURANCE SHALL CONTAIN A PROVISION THAT:

(1)      SPECIFIES THAT AN EQUITABLE ADJUSTMENT OF PREMIUMS OR
BENEFITS OR BOTH WILL BE MADE IF THE AGE OF AN INSURED IS MISSTATED; AND

(2)      CLEARLY STATES THE METHOD OF ADJUSTMENT TO BE USED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 431.

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

17-307. PAYMENT OF BENEFITS.

EACH POLICY OF GROUP LIFE INSURANCE SHALL CONTAIN A PROVISION THAT
ANY SUM DUE BECAUSE OF THE DEATH OF THE INSURED IS PAYABLE TO THE
BENEFICIARY DESIGNATED BY THE INSURED, SUBJECT TO:

(1)      THE PROVISIONS OF THE POLICY AS TO PAYMENT OF ALL OR PART
OF THE SUM IF A DESIGNATED BENEFICIARY IS NOT ALIVE AT THE DEATH OF THE
INSURED; AND

(2)      ANY RIGHT THAT THE INSURER RESERVES IN THE POLICY AND SETS
FORTH IN THE CERTIFICATE TO PAY AT ITS OPTION A PART OF THE SUM, NOT
EXCEEDING $2,500, TO A PERSON THAT THE INSURER CONSIDERS EQUITABLY
ENTITLED TO IT FOR HAVING INCURRED FUNERAL OR OTHER EXPENSES INCIDENT
TO THE INSURED'S DEATH OR LAST ILLNESS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 432.

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

17-308. INDIVIDUAL CERTIFICATES.

EACH POLICY OF GROUP LIFE INSURANCE SHALL CONTAIN A PROVISION THAT
REQUIRES THE INSURER TO ISSUE TO THE POLICYHOLDER, FOR DELIVERY TO EACH
INSURED, AN INDIVIDUAL CERTIFICATE THAT STATES:

(1)      THE INSURANCE PROTECTION TO WHICH THE INSURED IS
ENTITLED;

(2)      EACH PERSON TO WHOM THE INSURANCE BENEFITS ARE PAYABLE;
AND

(3)      THE RIGHTS AND CONDITIONS SET FORTH IN §§ 17-102 AND 17-309
THROUGH 17-311 OF THIS TITLE.

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