Ch. 82

2003 LAWS OF MARYLAND

(C)     ANY TERMINATION OF AN ACTION OR PROCEEDING DOES NOT, OF ITSELF,
CREATE A PRESUMPTION THAT THE COVERED INDIVIDUAL DID NOT MEET THE
STANDARDS FOR INDEMNIFICATION DESCRIBED IN SUBSECTION (B) (2) AND (3) OF
THIS SECTION.

(D)     THE STATE MAY NOT INDEMNIFY:

(1)      A COVERED INDIVIDUAL WITH RESPECT TO AN ACTION OR
PROCEEDING AS TO WHICH THE COVERED INDIVIDUAL WAS HELD LIABLE FOR
GROSS NEGLIGENCE OR WILLFUL MISCONDUCT IN THE PERFORMANCE OF THE
COVERED INDIVIDUAL'S DUTY TO THE SUPPLEMENTAL RETIREMENT PLANS; OR

(2)      AN INDEPENDENT CONTRACTOR FURNISHING SERVICES TO THE
SUPPLEMENTAL RETIREMENT PLANS.

(E)     (1) THE STATE SHALL PROVIDE INSURANCE FOR A COVERED
INDIVIDUAL ELIGIBLE FOR INDEMNIFICATION UNDER THIS SECTION.

(2)      FOR THE PURPOSE OF PARAGRAPH (1) OF THIS SUBSECTION, THE
STATE MAY PROVIDE SELF-INSURANCE UNDER TERMS AND CONDITIONS
SATISFACTORY TO THE STATE TREASURER

(3)      A COVERED INDIVIDUAL MAY NOT BE REQUIRED TO PAY AMOUNTS
ATTRIBUTABLE TO LIABILITY DESCRIBED IN THIS SECTION BECAUSE THE STATE
DOES NOT PROVIDE ADEQUATE INSURANCE COVERAGE OR OTHERWISE FAILS TO
INDEMNIFY IN ACCORDANCE WITH THIS SECTION.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be
construed to apply retroactively and shall be applied to and interpreted to affect
supplemental retirement plans and accounts authorized and supplemental annuity
contributions made after December 31, 2001.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2003.

Approved April 22, 2003.

CHAPTER 82
(Senate Bill 333)

AN ACT concerning

Individual Deferred Annuities - Minimum Nonforfeiture Amount - Interest

Rate on Accumulations

FOR the purpose of reducing the interest rate applied to certain accumulations used
to determine the minimum nonforfeiture amount under certain annuity
contracts; providing for the termination of this Act; and generally relating to the
interest rate applied to accumulations used to determine the minimum

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