Ch. 35

1997 LAWS OF MARYLAND

(B) IN GENERAL.

(1) AN INSURED OR CERTIFICATE HOLDER WHO IS INSURED UNDER A
POLICY OR CONTRACT OF LONG-TERM CARE INSURANCE MAY SURRENDER THE
POLICY OR CONTRACT WITHIN 30 DAYS AFTER DELIVERY FOR A RETURN OF ANY
PREMIUM PAID BY PROVIDING WRITTEN NOTICE OF SURRENDER TO THE CARRIER.

(2) THE RIGHT OF SURRENDER MAY NOT BE WAIVED.

(3) A CONTRACT TO PURCHASE LONG-TERM CARE INSURANCE SHALL
CONTAIN THE FOLLOWING STATEMENT:

"NOTICE TO BUYER: YOU MAY SURRENDER THE CONTRACT OR POLICY OF
LONG-TERM CARE INSURANCE WITHOUT PENALTY OR OBLIGATION WITHIN 30
DAYS FROM THE DATE OF DELIVERY OF THE POLICY. IF YOU DECIDE TO
SURRENDER THE CONTRACT OR POLICY, YOU MUST PROVIDE NOTICE OF THE
SURRENDER TO THE INSURER. ANY ATTEMPT TO OBTAIN A WAIVER OF YOUR
RIGHT TO SURRENDER IS UNLAWFUL. SURRENDER ENTITLES YOU TO A REFUND OF
ALL MONEYS WITHIN 30 BUSINESS DAYS AFTER RECEIPT OF NOTICE OF
SURRENDER".

(C) VOID POLICIES.

A POLICY SURRENDERED UNDER THIS SECTION IS DEEMED VOID FROM ITS
EFFECTIVE DATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 646.

In subsection (a) of this section, the reference to the "Internal Revenue
Code" is substituted for the former incorrect reference to the "Internal
Revenue Service Code".

In subsection (b)(1) of this section, the reference to a "policy or contract" of
long-term care insurance is added for clarity.

Defined terms: "Carrier" § 18-101
"Certificate" § 18-101
"Long-term care insurance" § 18-101
"Policy" § 1-101
"Premium" § 1-101

18-120. PROHIBITED ACTS.

IN ADDITION TO THE OTHER PRACTICES PROHIBITED UNDER THIS ARTICLE, A
CARRIER OR AGENT OF A CARRIER THAT PROVIDES LONG-TERM CARE INSURANCE
MAY NOT:

(1) EMPLOY A METHOD OF MARKETING THAT INDUCES OR TENDS TO
INDUCE THE PURCHASE OF LONG-TERM CARE INSURANCE THROUGH UNDUE
PRESSURE;

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