reglab/statecodes huggingface dataset:
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2001 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Independent pharmacy” means a pharmacy operating within the State that is under common ownership with not more than two other pharmacies.
(c)    “Pharmacy benefits manager” has the meaning stated in § 15–1601 of this title.
(d)    “Pharmacy services administrative contract” means a contractual agreement between a pharmacy services administrative organization and an independent pharmacy under which a pharmacy services administrative organization agrees to negotiate with  purchasers or pharmacy benefits managers on behalf of one or more independent pharmacies.
(e)    (1)    “Pharmacy services administrative organization” means an entity  that provides a contracted pharmacy with contracting administrative services relating to prescription drug benefits.
(2)    “Pharmacy services administrative organization” does not include a nonprofit health maintenance organization that:
(i)    operates as a group model;
(ii)    provides services solely to a member or patient of the nonprofit health maintenance organization; and
(iii)    furnishes services through the internal pharmacy operations of the nonprofit health maintenance organization.
(f)    (1)    “Purchaser” means the State Employee and Retiree Health and Welfare Benefits Program, an insurer, a nonprofit health services plan, or a health maintenance organization that provides prescription drug coverage or benefits in the State.
(2)    “Purchaser” does not include a person that provides prescription drug coverage or benefits through plans subject to the Employee Retirement Income Security Act of 1974 and does not provide prescription drug coverage or benefits through insurance, unless the person is a multiple employer welfare arrangement as defined in § 514(b)(6)(A)(ii) of the Employee Retirement Income Security Act of 1974.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2002 - Registration as Pharmacy Services Administrative Organization -- Requirements

(a)    On or after July 1, 2021, a pharmacy services administrative organization shall register with the Commissioner as a pharmacy services administrative organization before providing services as a pharmacy services administrative organization in the State to independent pharmacies.
(b)    An applicant for registration shall:
(1)    file with the Commissioner an application on the form that the Commissioner provides; and
(2)    pay to the Commissioner a registration fee set by the Commissioner.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2003 - Expiration or Renewal of Registration

(a)    A pharmacy services administrative organization registration expires on the second September 30 after its effective date unless it is renewed as provided under this section.
(b)    A pharmacy services administrative organization may renew its registration for an additional 2–year term if the pharmacy services administrative organization:
(1)    otherwise is entitled to be registered;
(2)    files with the Commissioner a renewal application on the form that the Commissioner requires; and
(3)    pays to the Commissioner a renewal fee set by the Commissioner.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2005 - Basis of Denial of Registration or Suspension or Revocation

Subject to the applicable hearing provisions of Title 2 of this article, the Commissioner may deny a registration to a pharmacy services administrative organization or refuse to renew, suspend, or revoke the registration of a pharmacy services administrative organization if the pharmacy services administrative organization, or an officer, a director, or an employee of the pharmacy services administrative organization:
(1)    makes a material misstatement or misrepresentation in an application for registration;
(2)    fraudulently or deceptively obtains or attempts to obtain a registration;
(3)    in connection with the administration of pharmacy services administrative organization services, commits fraud or engages in illegal  activities; or
(4)    violates this subtitle or a regulation adopted under this subtitle.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2006 - Recordkeeping Requirements

A pharmacy services administrative organization shall maintain adequate books and records regarding each independent pharmacy for which the pharmacy services administrative organization provides services as a pharmacy services administrative organization:
(1)    in accordance with prudent standards of record keeping;
(2)    for the duration of the agreement between the pharmacy services administrative organization and the independent pharmacy; and
(3)    for 3 years after the pharmacy services administrative organization ceases to provide services as a pharmacy services administrative organization for the independent pharmacy.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2007 - Review by Commissioner -- Expense

(a)    Whenever the Commissioner considers it advisable, the Commissioner may examine the affairs, transactions, accounts, and records of a registered pharmacy services administrative organization.
(b)    The examination shall be conducted in accordance with § 2–207 of this article.
(c)    The expense of the examination shall be paid in accordance with § 2–208 of this article.
(d)    The reports of the examination and investigation shall be issued in accordance with § 2–209 of this article.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2010 - Filing of Contract or Amendment to Contract

(a)    A pharmacy services administrative contract or an amendment to a pharmacy services administrative contract may not become effective unless:
(1)    at least 60 days before the contract or amendment is to become effective, the pharmacy services administrative organization files the contract or, if required, amendment with the Commissioner in the form required by the Commissioner; and
(2)    the Commissioner does not disapprove the filing within 60 days after the contract or amendment is filed.
(b)    Notice from the Commissioner that a filed contract or amendment to a contract may be used in the State constitutes a waiver of any unexpired part of the filing period.
(c)    The Commissioner shall adopt regulations to:
(1)    establish the circumstances under which the Commissioner may disapprove a contract; and
(2)    specify the types of amendments to a contract required to be filed under subsection (a) of this section.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2011 - Provision of Certain Documents by Pharmacy Services Administrative Organization -- Confidential

(a)    A pharmacy services administrative contract shall include a provision that requires the pharmacy services administrative organization to provide to the independent pharmacy an electronic or paper copy of any contracts, amendments, payment schedules, or reimbursement rates within 5 working days after the execution of a contract, or an amendment to a contract, signed on behalf of the independent pharmacy by the pharmacy services administrative organization.
(b)    A pharmacy services administrative contract may prohibit an independent pharmacy from disclosing the documents provided to the independent pharmacy under subsection (a) of this section to any competitor of the pharmacy services administrative organization.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2012 - Disclosure of Ownership or Control to Commissioner -- Notification of Changes

(a)    Each pharmacy services administrative organization shall disclose to the Commissioner the extent of any ownership or control of the pharmacy services administrative organization by any parent company, subsidiary, or other organization that:
(1)    provides pharmacy services;
(2)    provides prescription drug or device services; or
(3)    manufactures, sells, or distributes prescription drugs, biologics, or medical devices.
(b)    Each pharmacy services administrative organization shall notify the Commissioner in writing within 5 working days after any material change in its ownership or control relating to any company, subsidiary, or other organization described under subsection (a) of this section.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2013 - Disclosure of Ownership or Control to Independent Pharmacy -- Notification of Changes

(a)    Before entering into a pharmacy services administrative contract, a pharmacy services administrative organization shall provide to an independent pharmacy a written disclosure of ownership or control.
(b)    The disclosure required under subsection (a) of this section shall include the extent of any ownership or control by any parent company, subsidiary, or other organization that:
(1)    provides pharmacy services;
(2)    provides prescription drug or device services; or
(3)    manufactures, sells, or distributes prescription drugs, biologics, or medical devices.
(c)    A pharmacy services administrative contract shall require a pharmacy services administrative organization to notify an independent pharmacy in writing within 5 working days after any material change in its ownership or control related to any company, subsidiary, or other organization described under subsection (b) of this section.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2014 - Disclosure of Ownership or Control to Purchaser or Pharmacy Benefits Manager -- Notification of Changes

(a)    Before entering into a contract with a purchaser or pharmacy benefits manager, a pharmacy services administrative organization shall provide to the purchaser or pharmacy benefits manager a written disclosure of ownership or control.
(b)    The disclosure required under subsection (a) of this section shall include the extent of any ownership or control by any parent company, subsidiary, or other organization that:
(1)    provides pharmacy services;
(2)    provides prescription drug or device services; or
(3)    manufactures, sells, or distributes prescription drugs, biologics, or medical devices.
(c)    A contract with a purchaser or pharmacy benefits manager shall provide that a pharmacy services administrative organization shall notify the purchaser or pharmacy benefits manager in writing within 5 working days after any material change in its ownership or control related to any company, subsidiary, or other organization described in subsection (b) of this section.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2015 - Timely Submission of Remittances

A pharmacy services administrative contract shall:
(1)    require all remittances for claims submitted by a pharmacy benefits manager or purchaser on behalf of an independent pharmacy to be passed by the pharmacy services administrative organization to the independent pharmacy within a reasonable amount of time; and
(2)    specify the reasonable amount of time in which the pharmacy services administrative organization is required to pass the remittances received from the pharmacy benefits manager or  purchaser to the independent pharmacy.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2016 - Certain Contractual Requirements Prohibited -- Certain Disclosures to Commissioner

(a)    A pharmacy services administrative organization that owns or is owned by, in whole or in part, an entity that manufactures, sells, or distributes prescription drugs, biologics, or medical devices may not require, as a condition of entering into a pharmacy services administrative contract, that an independent pharmacy purchase any drugs, biologics, or medical devices from the entity.
(b)    A pharmacy services administrative organization that owns or is owned by, in whole or in part, any entity that manufactures, sells, or distributes prescription drugs, biologics, or medical devices shall disclose to the Commissioner any agreement with an independent pharmacy under which the independent pharmacy purchases prescription drugs, biologics, or medical devices from the entity.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 20 - Pharmacy Services Administrative Organizations › Section 15-2017 - Confidentiality of Disclosures

(a)    All disclosures made under this subtitle shall comply with the privacy standards established in federal and State law.
(b)    A contract or amendment to a contract submitted to the Commissioner as required by this subtitle:
(1)    is considered to be confidential and proprietary information; and
(2)    is not subject to disclosure under the Public Information Act.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 21 - Capitated Payments › Section 15-2101 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Administrator” means a carrier administering a self–funded group health plan.
(c)    “Carrier” has the meaning stated in § 15–113 of this title.
(d)    “Health benefit plan” has the meaning stated in § 2–112.2 of this article.
(e)    “Health care practitioner” has the meaning stated in § 15–113 of this title.
(f)    “Member” has the meaning stated in § 15–10A–01 of this title.
(g)    “Network” has the meaning stated in § 15–112 of this title.
(h)    “Participant” means an employee or an employee’s dependent who participates in a self–funded group health insurance plan.
(i)    “Set of health care practitioners” has the meaning stated in § 15–113 of this title.
2023 Maryland Statutes › Insurance › Title 15 - Health Insurance › Subtitle 21 - Capitated Payments › Section 15-2102 - Health Care Practitioner Not Engaged in Insurance Business in Contracting for Capitated Payments

(a)    This section applies to arrangements under a health benefit plan offered by a carrier or a self–funded group health insurance plan in which a capitated payment is:
(1)    calculated as a fixed amount per member or participant assigned or attributed to the health care practitioner or set of health care practitioners;
(2)    to cover the provision of a set of services defined in the health care practitioner’s or set of health care practitioners’ contract and rendered by the health care practitioner or set of health care practitioners; and
(3)    paid periodically regardless of utilization of the services by the members or participants.
(b)    Subject to the requirements of subsection (c) of this section, a health care practitioner or set of health care practitioners is not engaged in insurance business as described in § 4–205 of this article solely because the health care practitioner or set of health care practitioners enters into a contract with a carrier that includes capitated payments for services provided by the health care practitioner or set of health care practitioners.
(c)    A health care practitioner or set of health care practitioners is not engaged in insurance business as described in § 4–205(c) of this article solely because the health care practitioner or set of health care practitioners enters into a contract with an administrator that includes capitated payments for services provided by the health care practitioner or set of health care practitioners to members of a self–funded group health plan if:
(1)    the health care practitioner or set of health care practitioners participates in the administrator’s network and accepts capitated payments;
(2)    the self–funded group health plan retains the obligation to provide access to covered health care benefits to participants; and
(3)    the contract does not include other reimbursement arrangements that are considered acts of an insurance business under § 4–205(c) of this article.
(d)    Notwithstanding subsections (b) and (c) of this section, nothing in this section may be construed to:
(1)    alter any requirement for a carrier or self–funded group health plan to pay a hospital or related institution the rate approved by the Health Services Cost Review Commission for hospital services; or
(2)    supersede the Health Services Cost Review Commission’s jurisdiction or authority over rate review and approval for hospital services.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-103 - Assessable Life Insurance or Annuities Prohibited

A life insurer may not:
(1)    issue or deliver in the State a policy of life insurance or an annuity contract that provides for the payment of an assessment by a policyholder or member in addition to the premium stated in the policy or annuity contract to be charged for the life insurance or annuity; or
(2)    levy or collect an assessment prohibited by item (1) of this section.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-104 - Back-Dating Policies and Applications Prohibited

(a)    An insurer may not knowingly deliver or issue for delivery in the State a policy of life insurance that purports to be issued or to take effect as of a date more than 6 months before the application for the policy was made, if, as a result, the premium on the policy is reduced below the premium that would have been payable on the policy as determined by the insuring age of the insured when the application was made.
(b)    An insurance producer or other representative of an insurer may not in the State prepare, submit, or accept an application for life insurance that bears a date earlier than the date when the application was made by the insured or applicant, if, as a result, the premium on the policy is reduced below the premium that would have been payable on the policy as determined by the insuring age of the insured when the application was made.
(c)    This section does not:
(1)    invalidate a contract made in violation of this section; or
(2)    prohibit the exchange, alteration, or conversion of a policy of life insurance.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-105 - Right to Surrender Policy or Contract for Cancellation

(a)    This section does not apply to policies or contracts issued to an employee in connection with the funding of a pension, annuity, or profit-sharing plan that is qualified or exempt under § 401, § 403, § 404, or § 501 of the Internal Revenue Code, if participation in the plan is a condition of employment.
(b)    Each policy of life insurance or annuity contract subject to this title shall have attached to or prominently printed on its face the following information:
(1)    a notice to the policyholder that:
(i)    for 10 days after the date the policy or annuity contract is delivered to the policyholder, the policyholder may surrender the policy or annuity contract to the insurer for cancellation by giving the insurer written notice of cancellation; and
(ii)    the insurer shall return to the policyholder a pro rata premium for the unexpired term of the policy or annuity contract; or
(2)    a similar notice to the policyholder that in the opinion of the Commissioner is not less favorable to the policyholder.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-106 - Exchange, Alteration, or Conversion of Policies and Contracts

(a)    On request of a policyholder, a life insurer may exchange, alter, or convert a policy of life insurance or endowment insurance or an annuity contract issued by the life insurer or any other benefits additional to the policy or annuity contract, for or into a policy that:
(1)    conforms with the laws in force on the date of the original policy or annuity contract, if the rewritten policy is, by its terms, made effective as of that date; or
(2)    conforms with the laws in force on a subsequent date as of which the rewritten policy is, by its terms, made effective.
(b)    (1)    This subsection applies only if the rewritten policy is made effective as of a date earlier than the date on which the exchange, alteration, or conversion occurs.
(2)    The amount of insurance under a rewritten policy subject to this subsection may not exceed the greater of:
(i)    the amount of insurance under the original policy or annuity contract; and
(ii)    the amount of insurance that the premium paid for the original policy or annuity contract would have purchased if the rewritten policy had been applied for originally.
(3)    If evidence of insurability is required in conjunction with an exchange, alteration, or conversion to a policy on a plan that requires a lower premium rate, or to a policy to which benefits or features are added that differ from the original policy, the rewritten policy may provide that the date on which the exchange, alteration, or conversion occurs shall be used to determine:
(i)    the applicability of an incontestability clause in the rewritten policy to the right of the insurer to contest the exchange, alteration, or conversion; or
(ii)    the applicability of a clause in the rewritten policy that limits liability in the event of the suicide of the insured.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-107 - Contestability and Liability of Reinstated Policies and Contracts

(a)    A reinstated policy of life insurance or reinstated annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period after reinstatement and with the same conditions and exceptions as the policy or annuity contract provides with respect to contestability after original issue.
(b)    (1)    A reinstated policy of life insurance or reinstated annuity contract may exclude or restrict liability to the same extent that liability might have been or was excluded or restricted when the policy or annuity contract originally was issued.
(2)    The exclusion or restriction is effective as of the date of reinstatement.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-108 - Holding Proceeds

(a)    A life insurer may hold under agreement the proceeds of a policy issued by it on the terms and restrictions as to revocation by the policyholder and control by beneficiaries, and with the exemptions from the claims of creditors of beneficiaries other than the policyholder, as set forth in the policy or as agreed to in writing by the life insurer and the policyholder.
(b)    If a policyholder has not made an agreement described in subsection (a) of this section, on maturity of the policy the life insurer may hold the proceeds of the policy under an agreement with the beneficiaries.
(c)    The life insurer need not segregate any funds held under this section, but may hold the funds as part of the life insurer’s general assets.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-109 - Interest on Benefits Payable

(a)    Except as provided in subsection (b) of this section, interest on benefits payable under a policy of life insurance issued in the State accrues and is payable from the date of death of the insured to the date the proceeds of the policy are paid.
(b)    (1)    An insurer need not pay interest on benefits if the proceeds of the policy are paid within 30 days after the date of death of the insured.
(2)    If proof of death is submitted to the insurer more than 180 days after the date of death of the insured, interest accrues and is payable from the date on which proof of death is submitted to the date on which the proceeds of the policy are paid.
(c)    Interest under this section accrues and is payable at a rate not less than the rate of interest payable on death proceeds left on deposit with the insurer.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-110 - Payment of Proceeds Without Letters of Administration

(a)    If a resident of the State dies intestate and leaves an estate that consists of assets, including life insurance proceeds, in a total amount not exceeding $1,000, an insurer may pay the life insurance proceeds to the decedent’s surviving spouse, child, or parent, without the grant of letters of administration, if the individual to whom payment is to be made provides the insurer with:
(1)    an affidavit that states that the entire estate of the decedent, including life insurance proceeds, does not exceed $1,000; or
(2)    a letter of administration as provided by the Small Estate Law, §§ 5-601 through 5-607 of the Estates and Trusts Article.
(b)    The insurer may pay the share of a minor to an institution or to a relative of the minor, with custody of the minor, without requiring the institution or relative to be appointed the legal guardian of the minor.
(c)    Payment by an insurer under this section, or under a facility of payment clause in a policy of life insurance, discharges the insurer from all further liability with respect to the life insurance proceeds.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-111 - Proceeds Exempt From Creditors

(a)    The proceeds of a policy of life insurance or under an annuity contract on the life of an individual made for the benefit of or assigned to the spouse, child, or dependent relative of the individual are exempt from all claims of the creditors of the individual arising out of or based on an obligation created after June 1, 1945, whether or not the right to change the named beneficiary is reserved or allowed to the individual.
(b)    For purposes of this section, proceeds include death benefits, cash surrender and loan values, premiums waived, and dividends, whether used to reduce the premiums or used or applied in any other manner, except if the debtor has, after issuance of the policy, elected to receive the dividends in cash.
(c)    This section does not prohibit a creditor from collecting a debt out of the proceeds of a life insurance policy pledged by the insured as security for the debt.
(d)    A change of beneficiary, assignment, or other transfer is valid except for transfer with actual intent to hinder, delay, or defraud creditors.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-112 - Prohibited Agreements or Plans

A life insurer may not deliver in the State, as part of or in combination with an insurance, endowment, or annuity contract, and additional to the rights, dividends, and benefits arising out of the contract, an agreement or plan that:
(1)    provides for the accumulation of profits over a period of years and for payment of all or part of the accumulated profits only to members or policyholders of a designated group or class who continue as members or policyholders until the end of a specified period of years;
(2)    provides that, on the death of anyone other than a beneficiary or an insured under the contract, the owner or beneficiary of the contract shall receive the payment or granting of anything of value;
(3)    provides that all or part of the premiums or consideration for the contract, dividends, coupons, reserves, special reserves, excess interest, or money in excess of the normal reserve required to meet the contractual guarantees of the contract are to be placed or invested in special funds or segregated accounts without insurance or life contingency features, if the funds or earnings are divided among those taking the contract or their beneficiaries or assignees; or
(4)    as an inducement to or in connection with the sale or acceptance of the contract, provides for:
(i)    the sale, solicitation, or delivery of stock or shares of stock in a company;
(ii)    a benefit certificate, securities, or special advisory board contract, or other similar contracts or resolutions; or
(iii)    policy dividends bearing a stated relationship to dividends on the stock of a company.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-115 - Business of Burial Insurance

(a)    A person who engages in the business of burial insurance is subject to and shall comply with all of the provisions of this article relating to the organization, qualification, and conduct of life insurers.
(b)    This section does not limit or restrict the definitions of life insurance or life insurer in § 1-101 of this article.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-116 - Public Entity

(a)    In this section, “public entity” means:
(1)    a political subdivision of the State;
(2)    a unit of the State or a local government; or
(3)    a nonprofit or nonstock corporation that:
(i)    receives 50% or more of its annual operating budget from the State or a local government; and
(ii)    is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code.
(b)    Public entities may pool together to purchase life insurance or to self-insure against life risks.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-119 - Life Insurance on the Life of a Minor

(a)    (1)    A life insurer may refuse an application for a policy of life insurance on the life of a minor only if the refusal is consistent with § 27–501(a)(2) of this article.
(2)    An application for a policy of life insurance on the life of a minor that is submitted for underwriting shall include:
(i)    the signature of the applicant; and
(ii)    unless the minor is emancipated or married, the consent and signature of the parent or legal guardian with whom the minor resides.
(3)    The life insurer shall include on the first page of the application for a policy of life insurance on the life of a minor, on a disclosure provided to the applicant at the time of application, or on an endorsement to the policy the following statement in 12 point bold type:
“A person who feloniously and intentionally kills, conspires to kill, or procures the killing of the insured and who is a named beneficiary of a life insurance policy on the insured is not entitled to a benefit under the policy.”.
(b)    As part of the life insurer’s written standards and procedures for policy application and acceptance, the life insurer shall:
(1)    request that the applicant for a policy of life insurance on the life of a minor identify the amount of other life insurance coverage on the life of the minor that is in force or pending at the time of the application;
(2)    document the applicant’s response on the application; and
(3)    take reasonable steps to verify the amount of other life insurance in force or pending.
(c)    If an application for a life insurance policy on the life of a minor is for a policy that has a benefit of $50,000 or less and is issued without underwriting, the life insurer shall:
(1)    request that the applicant for a policy of life insurance on the life of a minor identify the amount, if any, of other life insurance coverage on the life of the minor that is in force or pending at the time of the application;
(2)    document the applicant’s response on the application;
(3)    take reasonable steps to verify the total amount of life insurance in force or pending; and
(4)    document the steps taken on a particular application to verify the total amount of life insurance in force or pending.
(d)    (1)    For each application for a policy of life insurance on the life of a minor that is rejected by a life insurer, the life insurer shall maintain at the life insurer’s home or principal office, for at least 3 years after the date the application was signed by the applicant, a complete file containing:
(i)    the original signed application;
(ii)    the life insurer’s underwriting analysis;
(iii)    any correspondence with the applicant; and
(iv)    any other documents pertinent to the decision to reject the application.
(2)    The life insurer shall obtain and keep records sufficient to demonstrate that the applicant for a policy of life insurance on the life of a minor has an insurable interest in the life of the minor in accordance with § 12–201 of this article.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 1 - General Provisions › Section 16-120 - Maintenance of Records of Insurance Transactions

Except as otherwise provided in this title, an insurer shall maintain records of insurance transactions related to each individual or group policy of life insurance and each individual or group annuity for a period of at least 7 years after the policy or annuity is no longer in effect.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-201 - Standard Provisions Required; Exceptions

(a)    Except as otherwise provided in this section, a policy of life insurance may not be delivered or issued for delivery in the State unless it contains in substance each applicable provision required by §§ 16-202 through 16-213 of this subtitle.
(b)    This section does not apply to:
(1)    group life insurance;
(2)    pure endowments;
(3)    annuity contracts; or
(4)    a provision of a policy of life insurance or contract supplemental to the policy that relates to disability benefits or to additional benefits for death by accident or accidental means.
(c)    To the extent that a provision or part of a provision required by this subtitle does not apply to a single premium or term policy, the provision or part of the provision need not be included in the policy.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-202 - Grace Period

(a)    (1)    Each policy of life insurance shall contain a provision that a grace period shall be allowed within which the payment of any premium after the first may be made.
(2)    The grace period shall be:
(i)    30 days;
(ii)    at the option of the insurer, 1 month of not less than 30 days; or
(iii)    4 weeks, for a policy of industrial life insurance with premiums payable more frequently than monthly.
(b)    The policy continues in full force during the grace period.
(c)    If a claim arises under the policy during the grace period, the amount of any premium due or overdue may be deducted from the policy proceeds.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-203 - Incontestability

(a)    Each policy of life insurance shall contain a provision that the policy is incontestable, except for nonpayment of premiums, after the policy has been in force during the lifetime of the insured for 2 years after its date of issue.
(b)    The incontestability provision described in subsection (a) of this section does not apply to policy provisions that relate to disability benefits or to additional benefits for death by accident or accidental means.
(c)    A provision in a policy of life insurance that provides that the policy is incontestable after a specified period:
(1)    precludes only a contest of the validity of the policy; and
(2)    does not preclude the assertion of defenses based on provisions in the policy that exclude or restrict coverage, whether or not the restrictions or exclusions are excepted in the provision.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-204 - Contract Between Parties; Effect of Statements in Application

(a)    Each policy of life insurance shall contain a provision that the policy, or the policy and the application for the policy if a copy of the application is endorsed on or attached to the policy when issued, constitute the entire contract between the parties.
(b)    If the application is made part of the policy, the policy shall contain a provision that the statements in the application, in the absence of fraud, are considered representations and not warranties.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-205 - Misstatement of Age

(a)    Each policy of life insurance shall contain a provision that if the age of the insured or of any other individual whose age is considered in determining the premium or benefit has been misstated, the amount payable or benefit accruing under the policy shall be the amount or benefit that the premium would have purchased had the correct age been stated.
(b)    (1)    If an application or policy expressly limits the insurable age and the correct age at the date of issue is outside the insurable age limit, the policy is voidable at the option of the insurer during the lifetime of the insured, but not later than 3 years after the date of issue of the policy.
(2)    If the insurer exercises the option to void the policy, the insurer shall return to the insured the aggregate of gross premiums charged on the policy, less:
(i)    dividends paid in cash or used to pay premiums on the policy; and
(ii)    any indebtedness to the insurer on the policy, including interest due and accrued.
(3)    The insurer may not exercise the option to void the policy more than 30 days after the correct age is established.
(4)    Subject to paragraph (5) of this subsection, if the insurer does not exercise the option to void the policy or if the age discrepancy is not discovered within 3 years after the date of issue of the policy, the insurer may not void the policy and the amount payable shall be determined in accordance with subsection (a) of this section.
(5)    If the premium rates of the insurer at the date of issue of the policy do not include a rate for the correct age, the amount payable shall be determined in accordance with established actuarial principles.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-206 - Dividends

(a)    (1)    Each participating ordinary life insurance policy shall contain a provision that:
(i)    each year the insurer shall determine and apportion any divisible surplus under the policy that will accrue on the policy anniversary or other dividend date specified in the policy; and
(ii)    the dividends arising from the apportionment shall be credited each year beginning not later than the end of the third policy year.
(2)    Each participating industrial life insurance policy shall contain a provision that:
(i)    each year the insurer shall determine and apportion any divisible surplus under the policy that will accrue on the policy anniversary or other dividend date specified in the policy; and
(ii)    the dividends arising from the apportionment shall be credited each year beginning not later than the end of the fifth policy year.
(3)    The policy may not contain a provision that the payment of any dividend payable under this section is contingent on the payment of any premium due on or after the date when the dividend becomes payable.
(b)    (1)    Subject to paragraph (2) of this subsection, each policy shall contain a provision that the party entitled to the dividend may elect to have the dividend:
(i)    paid in cash;
(ii)    applied to the payment of any premium then due;
(iii)    applied to provide paid-up additions to the policy; or
(iv)    left to accumulate at an interest rate not less than the rate specified in the policy.
(2)    A term policy need not provide the dividend options specified in paragraph (1)(iii) and (iv) of this subsection.
(3)    Each participating ordinary life insurance policy shall contain a provision that a specified option becomes effective unless the party entitled to the dividend notifies the insurer in writing of a different option within 30 days after the date on which the dividend is payable.
(c)    If a participating policy provides that the benefit under any paid-up nonforfeiture provision is to be participating, the policy may provide that any divisible surplus apportioned while the insurance is in force under the nonforfeiture provision shall be applied in any manner specified in the policy.
(d)    This section does not prohibit an insurer from granting to the party entitled to the dividends the right to elect another dividend option offered by the insurer in addition to the options required by this section, whether or not the additional option is specified in the policy.
(e)    This section does not prohibit payment of additional dividends on default of payment of premiums or on termination of the policy.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-207 - Policy Loans

(a)    This section does not apply to:
(1)    term policies;
(2)    term insurance benefits provided by rider or supplemental policy provisions; or
(3)    industrial life insurance policies.
(b)    Each policy of life insurance shall contain a provision that, on proper assignment or pledge of the policy and on the sole security of the policy, the insurer shall advance an amount equal to, or at the option of the party entitled to the advance, an amount not exceeding the loan value of the policy:
(1)    after premiums have been paid for at least 3 years;
(2)    after the policy has a cash surrender value; and
(3)    while no premium is in default beyond the grace period.
(c)    (1)    Except as provided in paragraph (2) of this subsection and subject to § 16-208 of this subtitle, the insurer may charge interest on the advance at a rate specified in the policy not exceeding an effective rate of 6% per year.
(2)    The Commissioner may authorize an interest rate exceeding an effective rate of 6% but not exceeding 8% per year if the Commissioner finds that a greater rate will reduce the net cost of life insurance offered by the insurer in direct relationship to the revenue from the increase.
(d)    (1)    Subject to paragraph (2) of this subsection, the loan value of a policy shall at least equal the cash surrender value of the policy at the end of the current policy year.
(2)    In determining the cash surrender value of a policy, the insurer may deduct from the loan value or from the proceeds of the loan:
(i)    any existing indebtedness to the insurer not already deducted including any interest then accrued but not due;
(ii)    any unpaid balance of the premium for the current policy year; and
(iii)    interest on the loan to the end of the current policy year.
(e)    Each policy may also contain a provision that:
(1)    interest on any indebtedness that is not paid when due shall be added to the existing indebtedness and shall bear interest at the same rate; and
(2)    the policy terminates if:
(i)    the total indebtedness on the policy, including interest due or accrued, equals or exceeds the amount of the loan value of the policy; and
(ii)    at least 30 days before termination, the insurer mails notice to the last known address of the insured or policy owner and of any assignee of record at the home office of the insurer.
(f)    Each policy shall allow the insurer to defer granting a loan, other than for the payment of a premium to the insurer, for 6 months after application for the loan.
(g)    Except for those policies that require weekly premium payments, each policy shall provide for an automatic premium loan, subject to an election by the party entitled to elect.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-209 - Table of Installment Benefits

If a policy of life insurance provides that the proceeds may be paid in installments or as an annuity, the policy shall contain a provision that so states and shall include a table that shows the amount and period of the installment or annuity if determinable when the policy is issued.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-210 - Reinstatement

(a)    Each policy of life insurance shall contain a provision that, subject to subsection (b) of this section, a policy of industrial life insurance will be reinstated within 2 years and any other policy of life insurance will be reinstated within 3 years after the due date of the first premium in default on:
(1)    written application for reinstatement;
(2)    the production of evidence of insurability satisfactory to the insurer; and
(3)    the payment of all premiums in arrears and the payment or reinstatement of any other indebtedness to the insurer on the policy, with interest on the premiums and other indebtedness at a specified rate not exceeding an effective rate of 6% per year compounded annually.
(b)    The policy shall provide that reinstatement is not allowed if:
(1)    the policy has been surrendered for its cash surrender value;
(2)    the cash surrender value of the policy has been exhausted because of policy indebtedness; or
(3)    any paid-up term insurance has expired.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-211 - Payment of Benefits

(a)    Each policy of life insurance shall contain a provision that when benefits become payable because of the death of the insured, settlement shall be made on receipt of proof of death and, at the insurer’s option, on surrender of the policy, proof of the interest of the claimant, or both.
(b)    The provision also shall state that benefits include the refund of premiums paid after the month in which death occurred.