Ch. 400                                    2003 LAWS OF MARYLAND

CHAPTER 400
(Senate Bill 658)

AN ACT concerning

Life Insurance - Prohibited Use of Terrorism Exclusions

FOR the purpose of prohibiting the delivery or issuance for delivery in the State of a
group policy of life insurance if the policy, under certain circumstances, excludes
or restricts liability for death that is the result of terrorism; clarifying the
prohibition on the delivery or issuance for delivery in the State of a policy of life
insurance if the policy, under certain circumstances, excludes or restricts
liability for death that is the result of terrorism; requiring the Maryland
Insurance Commissioner to adopt certain regulations; and generally relating to
the prohibited use of certain exclusions in policies of life insurance.

BY repealing and reenacting, with amendments,
Article - Insurance
Section 16-215 and 17-101
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

16-215.

(a) Except as otherwise provided in this section, a policy of life insurance may
not be delivered or issued for delivery in the State if the policy excludes or restricts
liability for death that is caused in a specified manner or occurs while the insured has
a specified status.

(b) (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
A policy of life insurance may contain a provision that excludes or restricts coverage
for death under any of the following circumstances:

(i) death as a direct or indirect result of:

1.       a declared or undeclared war;

2.       action by military forces;

3.       an act or hazard of a declared or undeclared war or of an
action by military forces;

4.       service in the military forces or in civilian forces auxiliary
to the military forces; or

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