Ch. 35

1997 LAWS OF MARYLAND

for the former reference to a contract of "life annuity" to use the term defined
for the article.

In item (3) of this section, the former reference to an agreement "of any form
or nature" is deleted as surplusage.

Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101
"Health insurance" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Life insurance" § 1-101
"Person" § 1-101
"Policy" § 1-101
"Premium" § 1-101

27-210. EFFECT OF §§ 27-208 AND 27-209.

(A) IN GENERAL.

SECTIONS 27-208 AND 27-209 OF THIS SUBTITLE MAY NOT BE CONSTRUED TO
INCLUDE WITHIN THE DEFINITION OF DISCRIMINATION OR REBATES ANY OF THE
PRACTICES SET FORTH IN THIS SECTION.

(B) PAYING BONUSES OR ABATING PREMIUMS.

FOR A CONTRACT OF LIFE INSURANCE OR AN ANNUITY CONTRACT, IT IS NOT
DISCRIMINATION OR A REBATE TO PAY BONUSES TO POLICYHOLDERS OR
OTHERWISE ABATE THEIR PREMIUMS WHOLLY OR PARTLY OUT OF THE SURPLUS
ACCUMULATED FROM NONPARTICIPATING INSURANCE, IF THE BONUSES OR
ABATEMENT OF PREMIUMS IS FAIR, EQUITABLE TO, AND IN THE BEST INTEREST OF
POLICYHOLDERS.

(C) ALLOWANCE FOR SAVINGS IN COLLECTION EXPENSE.

FOR POLICIES OF LIFE INSURANCE OR HEALTH INSURANCE ISSUED ON THE
INDUSTRIAL DEBIT, PRE AUTHORIZED CHECK, BANK DRAFT, OR SIMILAR PLANS, IT
IS NOT DISCRIMINATION OR A REBATE TO MAKE AN ALLOWANCE TO
POLICYHOLDERS WHO HAVE CONTINUOUSLY FOR A SPECIFIED PERIOD MADE
PREMIUM PAYMENTS DIRECTLY TO AN OFFICE OF THE INSURER OR BY
PREAUTHORIZED CHECK, BANK DRAFT, OR SIMILAR PLANS IN AN AMOUNT THAT
FAIRLY REPRESENTS THE SAVINGS IN COLLECTION EXPENSE.

(D) READJUSTMENT OF RATE OF PREMIUM FOR GROUP POLICY.

IT IS NOT DISCRIMINATION OR A REBATE TO READJUST THE RATE OF
PREMIUM FOR A GROUP POLICY BASED ON THE LOSS OR EXPENSE EXPERIENCE
UNDER THE POLICY, AT THE END OF ANY POLICY YEAR, RETROACTIVE ONLY FOR
THAT POLICY YEAR.

(E) REDUCING PREMIUM RATE FOR POLICIES OF LARGE AMOUNT.

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