PARRIS N. GLENDENING, Governor

Ch. 183

2. THE COMMISSIONERS 1941 STANDARD INDUSTRIAL

MORTALITY TABLE;

3. THE COMMISSIONERS 1958 STANDARD ORDINARY

MORTALITY TABLE;

4. THE COMMISSIONERS 1980 STANDARD ORDINARY
MORTALITY TABLE; OR

5. ANY MORE RECENT TABLE AUTHORIZED FOR USE
UNDER § 5-304(B) OF THIS ARTICLE; AND

(II) FOR ANNUITY AND PURE ENDOWMENT CERTIFICATES, TOTAL
AND PERMANENT DISABILITY BENEFITS, ACCIDENTAL DEATH BENEFITS, AND
NONCANCELABLE ACCIDENT AND HEALTH BENEFITS, THE TABLES THAT ARE
AUTHORIZED FOR USE BY LIFE INSURERS IN THE STATE.

(2) VALUATION OF ALL CERTIFICATES ISSUED ON OR AFTER JANUARY
1, 1998, SHALL BE UNDER VALUATION METHODS AND STANDARDS, INCLUDING
INTEREST ASSUMPTIONS, IN ACCORDANCE WITH THE LAWS OF THE STATE
APPLICABLE TO LIFE INSURERS ISSUING POLICIES CONTAINING LIKE BENEFITS.

(C) THE COMMISSIONER MAY:

(1) ACCEPT OTHER STANDARDS FOR VALUATION IF THE
COMMISSIONER FINDS THAT THE RESERVES PRODUCED BY THOSE OTHER
STANDARDS WILL NOT BE LESS IN THE AGGREGATE THAN RESERVES COMPUTED IN
ACCORDANCE WITH THE MINIMUM VALUATION STANDARD PRESCRIBED IN THIS

SECTION; AND

(2) VARY THE STANDARDS OF MORTALITY APPLICABLE TO ALL
BENEFIT CONTRACTS ON SUBSTANDARD LIVES OR OTHER EXTRA HAZARDOUS
LIVES BY ANY SOCIETY AUTHORIZED TO DO BUSINESS IN THE STATE.

(D) (1) WITH THE CONSENT OF THE COMMISSIONER OF INSURANCE OF THE
STATE OF DOMICILE OF THE SOCIETY, AND SUBJECT TO ANY CONDITIONS THE
COMMISSIONER MAY IMPOSE, A SOCIETY MAY ESTABLISH AND MAINTAIN RESERVES
ON ITS CERTIFICATES THAT EXCEED THE RESERVES REQUIRED UNDER THIS
SECTION.

(2) THE CONTRACTUAL RIGHTS OF ANY BENEFIT MEMBER MAY NOT BE
AFFECTED BY A SOCIETY ESTABLISHING AND MAINTAINING RESERVES UNDER
PARAGRAPH (1) OF THIS SUBSECTION.

8-446.

(A) Each society shall provide in its [constitution or] laws that:

(1) if the reserves of the society as to all or any class of certificates become
impaired, the board of directors or equivalent body of the society may require that THE
OWNER OF each CERTIFICATE [society member] pay the amount of the [member's]
OWNER'S equitable proportion of the deficiency as determined by the board of directors
or equivalent body and approved by the commissioner of the domiciliary state; and

- 1869 -