PARRIS N. GLENDENING, Governor

Ch. 35

IT IS NOT DISCRIMINATION OR A REBATE TO REDUCE THE PREMIUM RATE FOR
POLICIES OF LARGE AMOUNT, IF THE REDUCTION DOES NOT EXCEED SAVINGS IN
ISSUANCE AND ADMINISTRATIVE EXPENSES REASONABLY ATTRIBUTABLE TO
POLICIES OF LARGE AMOUNT AS COMPARED WITH POLICIES OF SIMILAR PLAN
ISSUED IN SMALLER AMOUNTS.

(F) SALARY SAVINGS, PAYROLL DEDUCTION, OR OTHER DISTRIBUTION
PLANS.

IT IS NOT DISCRIMINATION OR A REBATE TO ISSUE POLICIES OF LIFE
INSURANCE OR HEALTH INSURANCE OR ANNUITY CONTRACTS ON A SALARY
SAVINGS OR PAYROLL DEDUCTION PLAN OR OTHER DISTRIBUTION PLAN AT A
REDUCED RATE REASONABLY COMMENSURATE WITH THE SAVINGS MADE BY USE
OF THE PLAN.

(G) INCREASE IN BENEFITS FOR POLICIES CONTINUOUSLY IN FORCE.

IT IS NOT DISCRIMINATION OR A REBATE TO ISSUE POLICIES OF HEALTH
INSURANCE THAT PROVIDE FOR INCREASES IN BENEFITS TO POLICYHOLDERS WHO
MAINTAIN THEIR POLICIES CONTINUOUSLY IN FORCE WITHOUT LAPSE FOR
SPECIFIED PERIODS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 225.

In subsection (b) of this section, the reference to an "annuity contract" is
substituted for the former reference to a contract of "life annuity" to use the
term defined for the article.

In subsection (d) of this section, the phrase "at the end of any policy year" is
substituted for the former phrase "at the end of the first or any subsequent
policy year of insurance thereunder" for brevity.

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

27-211. USE OF INSURANCE AS INDUCEMENT.
(A) SCOPE OF SECTION.
THIS SECTION DOES NOT APPLY TO:

(1) INSURANCE ON THE LIFE OF A DEBTOR IN CONNECTION WITH A
SPECIFIC LOAN OR OTHER CREDIT TRANSACTION; OR

(2) INSURANCE ON A DEBTOR THAT PROVIDES INDEMNITY FOR
PAYMENTS THAT ARE DUE ON A SPECIFIC LOAN OR OTHER CREDIT TRANSACTION
WHILE THE DEBTOR IS DISABLED AS DEFINED IN THE POLICY.

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