ROBERT L. EHRLICH, JR., Governor

Ch. 83

nonforfeiture amount on individual deferred annuity contracts with flexible
considerations.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 16-504(b)(l)
Annotated Code of Maryland
(2002 Replacement Volume and 2002 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

16-504.

(b) (1) The minimum nonforfeiture amount under an annuity contract that
provides for flexible considerations at any time before or at the start of annuity
payments shall equal the remainder of:

(i) the accumulation until that time, at an interest rate of [3%]
1.5% per year, of the percentages of the net considerations paid before that time,
calculated under paragraph (2) of this subsection, and any existing additional amount
credited by the insurer to the contract; less

(ii) the sum of:

1.       any withdrawal from or partial surrender of the contract
accumulated at an interest rate of [3%] 1.5% per year; and

2.       any indebtedness to the insurer on the contract, including
interest due and accrued.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2003. It shall remain effective for a period of 2 years and, at the end of May
31, 2005, with no further action required by the General Assembly, this Act shall be
abrogated and of no further force and effect.

Approved April 22, 2003.

CHAPTER 83
(Senate Bill 335)

AN ACT concerning

General Assembly - Joint Technology Oversight Committee

FOR the purpose of repealing the termination date of the Joint Technology Oversight
Committee of the General Assembly; and generally relating to the Joint
Technology Oversight Committee.

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