Ch. 173

2003 LAWS OF MARYLAND

BY repealing and reenacting, without amendments,
Article - Insurance
Section 27-209
Annotated Code of Maryland
(2002 Replacement Volume and 2002 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 27-212
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

27-209.

Except as otherwise expressly provided by law, a person may not knowingly:

(1)     allow, make, or offer to make a contract of life insurance or health
insurance or an annuity contract or an agreement as to the contract other than as
plainly expressed in the contract;

(2)     pay, allow, give, or offer to pay, allow, or give directly or indirectly as
an inducement to the insurance or annuity:

(i) a rebate of premiums payable on the contract;

(ii) a special favor or advantage in the dividends or other benefits
under the contract;

(iii) paid employment or a contract for services of any kind; or

(iv) any valuable consideration or other inducement not specified in
the contract;

(3)     directly or indirectly give, sell, purchase, offer or agree to give, sell, or
purchase, or allow as inducement to the insurance or annuity or in connection with
the insurance or annuity, regardless of whether specified in the policy or contract, an
agreement that promises returns and profits, or stocks, bonds, or other securities, or
a present or contingent interest in or measured by stocks, bonds, or other securities,
of an insurer or other corporation, association, or partnership, or dividends or profits
accrued or to accrue on stocks, bonds, or other securities; or

(4)     offer, promise, or give any valuable consideration not specified in the
contract, except for educational materials, promotional materials, or articles of
merchandise that cost less than $10 (adjusted for inflation, using the Consumer Price
Index—All Urban Consumers), regardless of whether a policy is purchased.

- 1462 -