PARRIS N. GLENDENING, Governor

Ch. 35

(2) "NO CLAIM FOR LOSS INCURRED OR DISABILITY (AS DEFINED IN
THE POLICY) COMMENCING AFTER TWO YEARS FROM THE DATE OF ISSUE OF THIS
POLICY SHALL BE REDUCED OR DENIED ON THE GROUND THAT A DISEASE OR
PHYSICAL CONDITION NOT EXCLUDED FROM COVERAGE BY NAME OR SPECIFIC
DESCRIPTION EFFECTIVE ON THE DATE OF LOSS HAD EXISTED PRIOR TO THE
EFFECTIVE DATE OF COVERAGE OF THIS POLICY."

(B) EFFECT OF PROVISION.

THE FIRST PROVISION SET FORTH IN SUBSECTION (A) OF THIS SECTION DOES

NOT:

(1) AFFECT A LEGAL REQUIREMENT FOR AVOIDANCE OF A POLICY OR
DENIAL OF A CLAIM DURING THE INITIAL TWO-YEAR PERIOD AFTER THE ISSUANCE
OF THE POLICY; OR

(2) LIMIT THE APPLICATION OF §§ 15-219 THROUGH 15-223 OF THIS
SUBTITLE IF THERE IS A MISSTATEMENT WITH RESPECT TO AGE, OCCUPATION, OR
OTHER INSURANCE.

(C) POLICY INCONTESTABLE AFTER 2 YEARS.

(1) THIS SUBSECTION APPLIES ONLY TO A POLICY THAT THE INSURED
MAY CONTINUE IN EFFECT SUBJECT TO ITS TERMS BY THE TIMELY PAYMENT OF
PREMIUMS:

(I) UNTIL THE INSURED IS AT LEAST 50 YEARS OLD; OR

(II) IF THE POLICY IS ISSUED AFTER THE INSURED IS 44 YEARS
OLD, FOR AT LEAST 5 YEARS AFTER ITS DATE OF ISSUE.

(2) A POLICY SUBJECT TO THIS SUBSECTION MAY OMIT THE FIRST
PROVISION SET FORTH IN SUBSECTION (A) OF THIS SECTION AND SUBSTITUTE THE
FOLLOWING PROVISION UNDER THE CAPTION "INCONTESTABLE":

"AFTER THIS POLICY HAS BEEN IN FORCE FOR A PERIOD OF TWO YEARS
DURING THE LIFETIME OF THE INSURED (EXCLUDING ANY PERIOD DURING WHICH
THE INSURED IS DISABLED), IT SHALL BECOME INCONTESTABLE AS TO THE
STATEMENTS CONTAINED IN THE APPLICATION."

(3) IN THE PROVISION SET FORTH IN PARAGRAPH (2) OF THIS
SUBSECTION, AN INSURER MAY OMIT THE CLAUSE "EXCLUDING ANY PERIOD
DURING WHICH THE INSURED IS DISABLED".

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 441.

The quoted language of subsections (a) and (c)(2) of this section is the same
as the quoted language of former Art. 48A, § 441,

In subsection (b)(1) of this section, the phrase "after the issuance of the
policy" is added for clarity.

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