PARRIS N. GLENDENING, Governor

Ch. 35

The only change is in style.

Defined terms: "Insurance" § 1-101
"Insurer" § 1-101
"Premium" § 1-101

27-904. ANNUITY CONTRACTS — INCREASED SOCIAL SECURITY PAYMENTS.

AN ANNUITY CONTRACT MAY NOT CONTAIN A PROVISION THAT REDUCES
PAYMENTS TO AN INDIVIDUAL ENTITLED TO RECEIVE ANNUITY PAYMENTS UNDER
THE CONTRACT BECAUSE THE INDIVIDUAL RECEIVES AN INCREASE IN SOCIAL
SECURITY PAYMENTS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 240H.

The reference to annuity payments "under the contract" is added for clarity.

The prohibition that an annuity contract may not "contain a provision that
reduces" payments is substituted for the former prohibition that an annuity
contract may not "reduce" payments for accuracy and clarity.

The term "individual" is substituted for the former reference to a "person"
because only an individual would be entitled to receive annuity payments.

The former phrase "as defined in § 65 of this article", which modified "annuity
contract", is deleted as surplusage.

Defined terms: "Annuity" § 1-101
"Annuity contract" § 1-101

27-905. MOTOR VEHICLE LIABILITY INSURANCE — BILLING STATEMENTS.

(A) RECEIPT OF PAYMENT DUE DATE REQUIRED.

AN INSURER MAY NOT SEND A BILLING STATEMENT TO A POLICYHOLDER
UNDER A POLICY OR CONTRACT OF MOTOR VEHICLE LIABILITY INSURANCE UNLESS
THE BILLING STATEMENT INCLUDES A DATE BY WHICH ANY PAYMENT DUE UNDER
THE BILLING STATEMENT MUST BE RECEIVED BY THE INSURER FOR THE
INSURANCE COVERAGE TO CONTINUE WITHOUT PENALTY.

(B) INDUCEMENT TO PAY PREMIUM EARLY PROHIBITED.

AN INSURER MAY NOT USE FALSE OR MISLEADING LANGUAGE IN A BILLING
STATEMENT TO INDUCE THE POLICYHOLDER TO PAY A PREMIUM BEFORE IT IS
REQUIRED BY THE INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 240-I.

In subsection (a) of this section, the former reference to a "specific" date is
deleted as surplusage.

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