ROBERT L. EHRLICH, JR., Governor                             Ch. 400

5. any cause while the insured is a member of the military
forces of any country at war, declared or undeclared, or of any country engaged in an

action by military forces;

(ii) death as a result of aviation or air travel;

(iii) death that occurs within 2 years after the date of issue of the
policy as a result of a specified hazardous occupation or avocation;

(iv) death that occurs within 2 years after the date of issue of the
policy while the insured resides outside of the continental United States and Canada;
or

(v) death that occurs within 2 years after the date of issue of the
policy as a result of suicide while sane or insane.

(2) 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 THE RESULT OF AN ACT OF TERRORISM THAT THE COVERED
PERSON DID NOT COMMIT AND IN WHICH THE COVERED PERSON DID NOT
PARTICIPATE.

[(2)] (3) If a policy contains an exclusion or restriction listed in this
subsection, the policy also shall provide that, for death under the circumstances to
which the exclusion or restriction applies, the insurer shall pay a determinable
amount of at least:

(i) the reserve calculated in accordance with the Commissioner's
reserve valuation method on the basis of the mortality table and interest rate
specified in the policy for the calculation of nonforfeiture benefits; or

(ii) if the policy does not provide nonforfeiture benefits, the reserve
calculated in accordance with a mortality table and interest rate determined by the
insurer and specified in the policy.

[(3)] (4) The table and interest rate used under paragraph [(2)] (3) of
this subsection must be acceptable as a standard for the valuation of the policy in
accordance with Title 5, Subtitle 3 of this article with adjustment for indebtedness or
dividend credit.

(c)     This section does not apply to:

(1)     group life insurance;

(2)     reinsurance; or

(3)     a provision in a policy of life insurance that relates to additional
disability benefits or to additional benefits for death by accident or accidental means.

(d)     This section does not prohibit any policy provision that in the opinion of
the Commissioner is more favorable to the policyholder than a provision allowed by
this section.

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