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2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-212 - Designation of Beneficiary

(a)    (1)    Each policy of life insurance shall have the name of the beneficiary designated on the policy, or in the application or another form if attached to the policy, with a reservation of the right to designate or change the beneficiary after the policy is issued, unless the beneficiary is irrevocably designated.
(2)    An insurer may include in the policy a provision that a designation or change of beneficiary is not binding on the insurer until endorsed on the policy or otherwise accepted by the insurer.
(b)    (1)    Subject to paragraph (2) of this subsection, a policy of life insurance may provide that the insurer may make a payment under the policy to:
(i)    the estate of the insured;
(ii)    any relative of the insured by blood, legal adoption, or connection by marriage; or
(iii)    a person that appears to the insurer to be equitably entitled to the benefits because the person is a named beneficiary or has incurred expenses for the maintenance, medical attention, or burial of the insured.
(2)    The insurer may make a payment under paragraph (1) of this subsection only if:
(i)    within the period stated in the policy, which may not be less than 30 days after the death of the insured, the beneficiary designated in the policy does not make a claim under the policy or does not surrender the policy with proof of death;
(ii)    the beneficiary is the estate of the insured;
(iii)    the beneficiary is a minor;
(iv)    the beneficiary dies before the insured; or
(v)    the beneficiary is not legally competent to give a valid release.
(3)    A policy of life insurance may include a provision that is similar to that described in paragraphs (1) and (2) of this subsection and is applicable to any other payment due under the policy.
(4)    A policy of industrial life insurance also may provide that the insurer may refuse to endorse the name of any proposed beneficiary who does not appear to the insurer to have an insurable interest in the life of the insured.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-213 - Brief Description of Policy

(a)    A policy of life insurance other than a policy of group life insurance may not be delivered or issued for delivery in the State unless the policy has a legible and brief description of the policy on the first page of the policy.
(b)    The brief description shall include:
(1)    the title or type or plan of policy, including the term “industrial” or “wholesale” if applicable;
(2)    how long premiums are to be paid;
(3)    if and when the premium may change, except for a change because of a supplementary agreement;
(4)    if the benefit is not level, the use of the term “graded benefit” or a similar term to so indicate;
(5)    whether the policy is participating or nonparticipating;
(6)    if the policy is written on a rated underwriting basis, the terms “substandard class” or “rated class” or a substantially similar term; and
(7)    if the policy provides for the return of premiums as an additional benefit, the period during which the benefit is applicable.
(c)    Notwithstanding subsections (a) and (b) of this section, the brief description need not contain the items of information described in subsection (b) of this section, except for the items described in subsection (b)(1) and (5) of this section, if in the opinion of the Commissioner any of those items are:
(1)    already contained in and presented conspicuously in tabular form on the first page of the policy; or
(2)    presented conspicuously elsewhere in the policy and referred to in the description on the first page of the policy.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-214 - Long-Term Care

A policy of life insurance may include a rider or supplemental policy provision that offers an insured or certificate holder reimbursement or payment for long-term home health care or long-term care in a nursing home or other related institution:
(1)    instead of or in addition to benefits payable because of the death of the insured or certificate holder; or
(2)    instead of all or part of the cash surrender or other nonforfeiture value of the policy.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-216 - Prohibited Policy Provisions

(a)    Subject to subsection (b) of this section, a policy of life insurance may not contain:
(1)    a provision that the insurer may reduce or deny liability under the policy because the insured has previously obtained other insurance from the same insurer;
(2)    a provision that gives the insurer the right to declare the policy void because the insured has had a disease or ailment, whether specified or not, or has received institutional, hospital, medical, or surgical treatment or attention; or
(3)    a provision that gives the insurer the right to declare the policy void because the insured has been rejected for insurance, unless the right is conditioned on a showing by the insurer that knowledge of the rejection would have led to a refusal by the insurer to issue the policy.
(b)    Subsection (a)(2) of this section does not prohibit a policy provision that gives the insurer the right to declare the policy void if:
(1)    the insured has received institutional, hospital, medical, or surgical treatment or attention within 2 years before the policy was issued; and
(2)    the insured or a claimant under the policy fails to show that the condition occasioning the treatment or attention was not serious or was not material to the risk.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-217 - Required Provisions for Wholesale Life Insurance Policies

A policy of wholesale life insurance may not be delivered or issued for delivery in the State unless:
(1)    the policy contains the provisions and conforms to the requirements that the Commissioner sets by regulation; and
(2)    a copy of the form for the policy has been filed under § 12-203 of this article and approved by the Commissioner.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 2 - Life Insurance Policy Provisions › Section 16-219 - Notice to Policyholders of Universal or Variable Life Insurance

(a)    (1)    If a policy of universal or variable life insurance contains a provision that allows a policyholder to reduce the face amount of the policy, the insurer shall provide a written notice to the policyholder.
(2)    The notice shall state:
(i)    that the policyholder’s policy allows for a reduction of the face amount of the policy as an option to retain coverage;
(ii)    the amount to be paid to prevent the policy from lapse; and
(iii)    the insurer’s customer service telephone number.
(b)    The notice shall be sent to a policyholder’s last known address:
(1)    at the beginning of the grace period under § 16–202 of this subtitle; and
(2)    at least 30 days before termination of coverage.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 3 - Maryland Standard Nonforfeiture Law for Life Insurance › Section 16-301 - Scope of Subtitle; Applicability of Subtitle

(a)    This subtitle does not apply to:
(1)    reinsurance;
(2)    group life insurance;
(3)    a pure endowment;
(4)    an annuity contract or reversionary annuity contract;
(5)    a term policy of a uniform amount that:
(i)    does not provide guaranteed nonforfeiture or endowment benefits or provide for renewal;
(ii)    is for 20 years or less and expires before the insured’s age 71; and
(iii)    requires uniform premiums, payable during the entire term of the policy;
(6)    a term policy of a decreasing amount:
(i)    that does not provide guaranteed nonforfeiture or endowment benefits; and
(ii)    on which the adjusted premium, calculated under the applicable provisions of §§ 16-307 through 16-309 of this subtitle, is less than the adjusted premium on a policy or renewal of a policy of a uniform amount if the policy of the uniform amount:
1.    does not provide guaranteed nonforfeiture or endowment benefits;
2.    is issued at the same age and for the same initial amount of insurance;
3.    is for 20 years or less and expires before the insured’s age 71; and
4.    requires uniform premiums, payable during the entire term of the policy; or
(7)    a policy that:
(i)    does not provide guaranteed nonforfeiture or endowment benefits; and
(ii)    has a cash surrender value or present value for any paid-up nonforfeiture benefit, at the beginning of any policy year, calculated under the applicable provisions of §§ 16-305 through 16-309 of this subtitle, that does not exceed 1.5% of the amount of insurance at the beginning of the same policy year.
(b)    For purposes of determining the applicability of this subtitle, the age at expiry for a joint term life insurance policy is the age at expiry of the oldest life.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 3 - Maryland Standard Nonforfeiture Law for Life Insurance › Section 16-302 - Operative Date of Subtitle

The operative date of this subtitle is:
(1)    a date from June 2, 1947, to April 29, 1949, both inclusive, as specified by the insurer if the insurer filed with the Commissioner written notice of an election to comply with this subtitle on a date before April 30, 1949;
(2)    a date from May 1, 1949, to January 1, 1950, both inclusive, if allowed by the Commissioner; or
(3)    April 30, 1949.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 3 - Maryland Standard Nonforfeiture Law for Life Insurance › Section 16-304 - Inapplicable Provisions; Deferral of Payment of Cash Surrender Value

(a)    Any provision required under § 16-303(b) through (g) of this subtitle may be omitted from a policy of life insurance to the extent that the provision does not apply under the insurance plan.
(b)    The insurer shall reserve the right to defer the payment of any cash surrender value for up to 6 months after demand for payment with surrender of the policy.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 3 - Maryland Standard Nonforfeiture Law for Life Insurance › Section 16-306 - Paid-Up Nonforfeiture Benefit After Premium in Default

On default of a premium payment due on a policy anniversary, the present value of any paid-up nonforfeiture benefit available under the policy, calculated as of that policy anniversary:
(1)    shall at least equal the cash surrender value provided under the policy, calculated as of that policy anniversary; or
(2)    if no cash surrender value is provided, shall equal the cash surrender value that would have been required under this subtitle absent a condition that premiums shall have been paid for at least a specified period.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 3 - Maryland Standard Nonforfeiture Law for Life Insurance › Section 16-310 - Plans to Which 16-303 Through 16-309 Not Applicable

(a)    This section applies to a plan of life insurance:
(1)    that provides that the insurer will determine future premiums based on future experience estimates; or
(2)    the minimum values of which cannot be determined under the applicable provisions of §§ 16-303 through 16-309 of this subtitle.
(b)    The Commissioner must be satisfied that:
(1)    the benefits provided under the plan described in subsection (a) of this section are substantially as favorable to policyholders and insureds as the minimum benefits otherwise required by §§ 16-303 through 16-309 of this subtitle; and
(2)    the benefits and the pattern of premiums under the plan do not mislead prospective policyholders or insureds.
(c)    The cash surrender values and paid-up nonforfeiture benefits provided by a plan subject to this section may not be less than the minimum values and benefits required for the plan calculated by a method consistent with the principles of this subtitle, as determined by regulations adopted by the Commissioner.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 3 - Maryland Standard Nonforfeiture Law for Life Insurance › Section 16-311 - Miscellaneous Calculation Provisions

(a)    On default of a premium payment due on a policy of life insurance at a time other than the policy anniversary, any cash surrender value and paid-up nonforfeiture benefit available under the policy shall be calculated with an allowance for the lapse of time and the payment of any fractional premiums since the immediately preceding policy anniversary.
(b)    Values referred to in §§ 16-305 through 16-309 of this subtitle may be calculated on the assumption that a death benefit is payable at the end of the policy year of death.
(c)    The net value of any paid-up additions, other than paid-up term additions, may not be less than the amounts used to provide the additions.
(d)    Notwithstanding § 16-305 of this subtitle, the following additional benefits and premiums for the benefits shall be disregarded when calculating cash surrender values and nonforfeiture benefits required under this subtitle and need not be included in any paid-up nonforfeiture benefits:
(1)    benefits payable for death by accident or accidental means;
(2)    benefits payable for dismemberment or loss of sight;
(3)    benefits payable for total and permanent disability;
(4)    benefits payable as a reversionary annuity or deferred reversionary annuity benefits;
(5)    benefits for long-term home health care and long-term care in a nursing home or similar institution;
(6)    term insurance benefits provided by a rider or supplemental policy provision if this subtitle would not apply had the rider or supplemental policy provision been issued as a separate policy;
(7)    term insurance benefits payable on the life of a child provided in a policy on the life of a parent of the child if the term insurance:
(i)    expires before the child turns 26 years old;
(ii)    is a uniform amount after the child is 1 year old;
(iii)    has not become paid-up due to the death of a parent of the child; and
(8)    other policy benefits additional to life insurance or endowment benefits.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-401 - Standard Provisions Required; Exceptions

(a)    Except as otherwise provided in this section, an annuity contract or pure endowment contract may not be delivered or issued for delivery in the State unless it contains in substance each applicable provision required by §§ 16-402 through 16-407 of this subtitle.
(b)    This section does not apply to:
(1)    reversionary annuities or survivorship annuities;
(2)    group annuities; or
(3)    contracts for deferred annuities included in or on the lives of beneficiaries under policies of life insurance.
(c)    To the extent that a provision required by this subtitle does not apply to a single premium annuity contract or single premium pure endowment contract, the provision need not be included in the annuity contract or pure endowment contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-402 - Grace Period

(a)    Each annuity contract and each pure endowment contract shall contain a provision that a grace period of not less than 30 days shall be allowed within which any stipulated payment to the insurer due after the first may be made.
(b)    The annuity contract or pure endowment contract continues in full force during the grace period.
(c)    The insurer may charge interest on a payment made during the grace period at a rate specified in the annuity contract or pure endowment contract, not exceeding 6% per year, for the number of days that elapse in the grace period before the payment.
(d)    If a claim arises under the annuity contract or pure endowment contract due to death during the grace period before the overdue payment to the insurer or any deferred payments of the current contract year are made, the amount of the payments, with interest on any overdue payments, may be deducted from any amount payable under the annuity contract or pure endowment contract in settlement.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-403 - Incontestability

(a)    Subject to § 16-405 of this subtitle, if a statement, other than a statement about age, sex, or identity, is required as a condition to issuing an annuity contract or pure endowment contract, each annuity contract and each pure endowment contract shall contain a provision that the contract is incontestable, except for nonpayment of stipulated payments to the insurer, after the contract has been in force during the lifetime of the individual or individuals as to whom the statements are required for 2 years after its date of issue.
(b)    At the option of the insurer, the contract may also except from the incontestability provision described in subsection (a) of this section provisions that relate to disability benefits or to additional benefits for death by accident or accidental means.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-404 - Contract Between Parties

Each annuity contract and each pure endowment contract shall contain a provision that the contract, or the contract and the application for the contract if a copy of the application is endorsed on or attached to the contract when issued, constitute the entire contract between the parties.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-405 - Misstatement of Age or Sex

(a)    Each annuity contract and each pure endowment contract shall contain a provision that, if the age or sex of the individual or individuals on whose life or lives the contract is made, or of any of them, has been misstated, the amount payable or benefit accruing under the contract shall be the amount or benefit that the stipulated payment would have purchased had the correct age or sex been stated.
(b)    Each contract also shall contain a provision that if the insurer makes or has made an overpayment because of a misstatement of age or sex, the amount of the overpayment, with interest at a rate specified in the contract but not exceeding 6% per year, may be charged against the current or next payment or payments to be made by the insurer under the contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-406 - Dividends

(a)    (1)    Each participating annuity contract and each participating pure endowment contract shall contain a provision that:
(i)    each year the insurer shall determine and apportion any divisible surplus under the contract that will accrue on the contract anniversary or other dividend date specified in the contract; and
(ii)    the dividends arising from the apportionment shall be credited each year beginning not later than the end of the third contract year.
(2)    The payment of any dividend payable on or after the end of the third contract year may not be made contingent on the payment of any consideration due on or after the date when the dividend becomes payable.
(b)    (1)    Each contract shall contain a provision that the party entitled to the dividend may elect to have the dividend paid in cash or applied to the payment of any consideration then due.
(2)    Each contract shall contain a provision that a specified option becomes effective unless the party entitled to the dividend notifies the insurer in writing of election of a different option within 30 days after the date on which the dividend is payable.
(c)    A deferred annuity contract need not provide for participation in surplus after annuity payments begin.
(d)    This section does not prohibit an insurer from granting to the party entitled to the dividend 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 contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-407 - Reinstatement

(a)    Each annuity contract and each pure endowment contract shall contain a provision that, unless the cash surrender value has been paid, the contract may be reinstated, within 1 year after default in making stipulated payments to the insurer, on the payment of all overdue stipulated payments and the payment or reinstatement of any other indebtedness to the insurer on the contract, with interest on the payments and other indebtedness at a rate specified in the contract not exceeding 6% per year.
(b)    If applicable, the insurer may require evidence of insurability satisfactory to the insurer.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-408 - Required Provisions for Reversionary Annuity Contracts

(a)    A contract for a reversionary or survivorship annuity may not be delivered or issued for delivery in the State unless it contains in substance each provision required by this section.
(b)    (1)    Except as provided in paragraph (2) of this subsection, each contract for a reversionary or survivorship annuity shall include each provision specified in §§ 16-402 through 16-406 of this subtitle.
(2)    As to the provision required by § 16-402(d) of this subtitle, the insurer may provide for an equitable reduction of the amount of annuity payments in settlement of an overdue payment instead of providing for deduction of payments from an amount payable on settlement under the contract.
(c)    Each contract for a reversionary or survivorship annuity shall contain a provision that the contract may be reinstated within 3 years after the date of default in making stipulated payments to the insurer, on:
(1)    the production of evidence of insurability satisfactory to the insurer; and
(2)    (i)    the payment of all overdue payments and any indebtedness to the insurer on the contract with interest at a rate specified in the contract not exceeding 6% per year compounded annually; or
(ii)    the reinstatement as indebtedness on the contract of the amount stated in item (i) of this item, if this amount is within the limits allowed by the then cash value of the contract.
(d)    (1)    This section does not apply to group annuities or to annuities included in policies of life insurance.
(2)    To the extent that a provision required by this section does not apply to a single premium annuity, the provision need not be incorporated in the contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 4 - Annuity and Pure Endowment Contract Provisions › Section 16-409 - Rider or Supplemental Contract Provision

An annuity contract may include a rider or supplemental contract provision that offers a contract holder reimbursement or payment for long–term home health care or long–term care in a nursing home or other related institution:
(1)    instead of or in addition to the annuity benefits payable under the contract; or
(2)    instead of all or part of the cash surrender or other nonforfeiture value of the contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-501 - Scope of Subtitle

This subtitle does not apply to:
(1)    reinsurance;
(2)    a group annuity purchased under a retirement plan or deferred compensation plan established or maintained by an employer, including a partnership or sole proprietorship, or employee organization, or by both, other than a plan that provides individual retirement accounts or individual retirement annuities under § 408 of the Internal Revenue Code;
(3)    a premium deposit fund;
(4)    a variable annuity;
(5)    an investment annuity;
(6)    an immediate annuity;
(7)    a deferred annuity contract after annuity payments have begun;
(8)    a reversionary annuity; or
(9)    an annuity contract that is delivered outside the State through an insurance producer or other representative of the insurer issuing the contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-502 - Operative Date of Subtitle

The operative date of this subtitle is:
(1)    a date from July 2, 1980, to June 30, 1982, both inclusive, as specified by the insurer if the insurer filed with the Commissioner written notice of an election to comply with this subtitle on a date before July 1, 1982; or
(2)    July 1, 1982.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-505 - Paid-Up Annuity Benefits

(a)    Any paid-up annuity benefit available under an annuity contract shall be:
(1)    the present value of the annuity benefit on the date annuity payments are to begin; and
(2)    at least the minimum nonforfeiture amount on that date.
(b)    The present value shall be calculated using any mortality table and the interest rate specified in the annuity contract to determine minimum paid-up annuity benefits guaranteed in the contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-506 - Contracts With Cash Surrender Benefits

(a)    This section applies only to annuity contracts that provide cash surrender benefits.
(b)    Cash surrender benefits available before maturity under an annuity contract may not be less than the remainder of:
(1)    the present value as of the surrender date of the part of the maturity value of the paid-up annuity benefit that would be provided at maturity from considerations paid before the surrender date and any existing additional amount credited by the insurer to the contract; less
(2)    the appropriate amount that reflects prior withdrawals from or partial surrenders of the contract and any indebtedness to the insurer on the contract, including interest due and accrued.
(c)    The present value under subsection (b)(1) of this section shall be calculated using an interest rate not more than 1% higher than the interest rate specified in the contract for accumulating net considerations to determine the maturity value.
(d)    (1)    A cash surrender benefit may not be less than the minimum nonforfeiture amount at the time of surrender.
(2)    A death benefit under a contract subject to this section shall equal at least the cash surrender benefit.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-507 - Contracts Without Cash Surrender Benefits

(a)    This section applies only to annuity contracts that do not provide cash surrender benefits.
(b)    The present value of a paid-up annuity benefit available as a nonforfeiture option before maturity may not be less than the sum of:
(1)    the present value of that part of the maturity value of the paid-up annuity benefit under the annuity contract from considerations paid before the contract is surrendered for or changed to a deferred paid-up annuity; and
(2)    any existing additional amount credited by the insurer to the contract.
(c)    (1)    The present value under subsection (b)(1) of this section shall be calculated for the period before the maturity date using an interest rate specified in the annuity for accumulating the net considerations to determine the maturity value.
(2)    If the contract does not provide a death benefit before the start of annuity payments, the present value shall be calculated using the interest rate and mortality table specified in the contract for determining the maturity value of the paid-up annuity benefit.
(d)    The present value of a paid-up annuity benefit may not be less than the minimum nonforfeiture amount at the time of surrender.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-508 - Contracts With Optional Maturity Dates

(a)    This section applies to a determination of the benefits calculated under § 16-506 or § 16-507 of this subtitle for an annuity contract that allows an election to have annuity payments begin at optional maturity dates.
(b)    The maturity date of an annuity contract described in subsection (a) of this section shall be deemed to be the latest date for which an election is allowed under the contract, but may not be later than the later of the contract anniversary immediately following the annuitant’s 70th birthday or the tenth anniversary of the contract.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-509 - Miscellaneous Calculation Provisions

(a)    Any paid-up annuity, cash surrender, or death benefits available at any time other than on a contract anniversary under an annuity contract with fixed scheduled considerations shall be calculated with an allowance for the lapse of time and the payment of any scheduled considerations after the start of the contract year in which payment of considerations stops.
(b)    (1)    This subsection applies only to an annuity contract that provides by rider or supplemental contract provision both annuity benefits and life insurance benefits that exceed the greater of:
(i)    the cash surrender benefits; or
(ii)    a return of the gross considerations with interest.
(2)    The minimum nonforfeiture benefits shall:
(i)    be calculated separately as if the annuity benefits and life insurance benefits were provided under separate contracts; and
(ii)    equal the sum of:
1.    the minimum nonforfeiture benefits for the annuity part of the contract; and
2.    the minimum nonforfeiture benefits for the life insurance part of the contract.
(c)    Notwithstanding this section and §§ 16-505 through 16-508 of this subtitle, the following supplemental benefits and considerations for the benefits shall be disregarded when calculating the minimum nonforfeiture amounts, paid-up annuity, cash surrender, and death benefits required under this subtitle:
(1)    benefits payable for total and permanent disability;
(2)    benefits payable as reversionary annuity or deferred reversionary annuity benefits; or
(3)    other policy benefits additional to life insurance, endowment, and annuity benefits.
(d)    Additional benefits under subsection (c) of this section need not be included in any paid-up benefits unless the additional benefits separately would require minimum nonforfeiture amounts, paid-up annuity, cash surrender, and death benefits.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 5 - Maryland Standard Nonforfeiture Law for Individual Deferred Annuities › Section 16-510 - Short Title

This subtitle is the Maryland Standard Nonforfeiture Law for Individual Deferred Annuities and shall be interpreted in a manner consistent with the Standard Nonforfeiture Model Law for Individual Deferred Annuities published by the National Association of Insurance Commissioners.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 6 - Variable Contracts › Section 16-601 - Authority to Issue Variable Contracts

(a)    (1)    A stock insurer or mutual insurer may issue individual and group variable life insurance contracts that provide for payment varying directly with the investment experience of a segregated asset account if the stock insurer or mutual insurer:
(i)    is authorized to issue life insurance contracts in the State; and
(ii)    is authorized by the Commissioner to issue individual and group variable life insurance contracts.
(2)    A stock insurer or mutual insurer may issue individual and group variable annuity contracts that provide for payment varying directly with the investment experience of a segregated asset account if the stock insurer or mutual insurer:
(i)    is authorized to issue annuity contracts in the State; and
(ii)    is authorized by the Commissioner to issue individual and group variable annuity contracts.
(b)    To be authorized to issue variable contracts, a stock insurer or mutual insurer shall comply with regulations adopted by the Commissioner.
(c)    The regulations of the Commissioner may include:
(1)    requirements for a minimum capital and surplus in excess of the amount otherwise required for the issuance of life insurance contracts and annuity contracts that are not variable contracts; and
(2)    other requirements that the Commissioner considers appropriate to safeguard the interests of variable contract holders, other policyholders, insurers, and the public.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 6 - Variable Contracts › Section 16-602 - Investments of Segregated Asset Accounts

(a)    (1)    A segregated asset account may invest in any investments contractually permitted for the segregated asset account and specified in a plan of operation, and the restrictions, limitations, and other provisions of this article relating to investments shall not apply to the investments contained in the segregated asset account, provided that prior to delivery or issuance for delivery in the State, the form of the policy or annuity contract and the plan of operation have been filed with and approved by the Commissioner.
(2)    Preferred and common stock investments of amounts allocated to a segregated asset account may not be included in applying the 10% limitations under § 5–511(f) of this article.
(b)    The investments of a segregated asset account shall comply with the regulations of the Commissioner.
(c)    To the extent provided under the applicable contracts, the part of the assets of a segregated asset account equal to the reserves and other contract liabilities with respect to the account may not be chargeable with liabilities arising out of any other business that the insurer may conduct.
2023 Maryland Statutes › Insurance › Title 16 - Life Insurance and Annuities › Subtitle 6 - Variable Contracts › Section 16-603 - Contract Form Subject to Approval; Required Policy Provisions

(a)    A variable life insurance policy or variable annuity contract may not be delivered or issued for delivery in the State until the form of the policy or annuity contract has been filed with and approved by the Commissioner.
(b)    By regulation, the Commissioner shall determine the grace, reinstatement, and nonforfeiture provisions and other required policy provisions that are appropriate to variable life insurance contracts and variable annuity contracts.
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 1 - General Provisions › Section 17-101 - General Requirements for Policies

(a)    Unless approved by the Commissioner, a group life insurance policy may not be offered to a resident of the State under a group life insurance policy issued:
(1)    to a group other than one described in Subtitle 2 of this title; or
(2)    in another jurisdiction unless the type of group to be covered conforms substantially to a type of group described in Subtitle 2 of this title.
(b)    The premium for the policy shall be paid either from the policyholder’s funds or from funds contributed by the covered persons, or from both.
(c)    An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
(d)    A policy of group 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.
(e)    An insurer who seeks to solicit coverage for Maryland residents under a group life insurance policy issued in another jurisdiction shall include in the certificate form used in connection with the coverage a notice on the first page in 12-point bold type that states:
“The group insurance policy providing coverage under this certificate was issued in a jurisdiction other than Maryland and may not provide all of the benefits required by Maryland law.”
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 1 - General Provisions › Section 17-102 - Interest on Benefits Payable

(a)    Subject to subsection (b) of this section, interest on benefits payable under a policy of group life insurance issued in the State shall accrue and be payable from the date of death of the insured until the date on which the proceeds of the policy are paid.
(b)    (1)    An insurer is not required to 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 shall accrue and be payable from the date on which proof of death is submitted to the insurer until the date on which the proceeds of the policy are paid.
(c)    Interest under this section shall accrue and be 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 17 - Group Life Insurance › Subtitle 1 - General Provisions › Section 17-103 - Statement to Insured Debtors

An insurer that issues a policy to a creditor to insure debtors of the creditor shall provide to the creditor for delivery to each debtor insured under the policy a form that states that:
(1)    the life of the debtor is insured under the policy; and
(2)    a death benefit paid under the policy because of the debtor’s death shall be applied to reduce or extinguish the indebtedness.
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 1 - General Provisions › Section 17-104 - Assignment of Rights and Benefits

(a)    An insured under a policy of group life insurance, in accordance with an arrangement among the insured, the group policyholder, and the insurer, may assign to any person any or all of the rights and benefits conferred on the insured by the policy or by law, including:
(1)    the right to have issued to the insured an individual policy of life insurance arising from conversion as set forth in §§ 17-309 through 17-311 of this title; and
(2)    the right to name a beneficiary.
(b)    An assignment made under this section, even if made before the effective date of this section:
(1)    vests in the assignee all rights and benefits that are assigned; and
(2)    entitles the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy:
(i)    in accordance with the terms of the assignment; but
(ii)    without prejudice to the insurer on account of a payment the insurer makes or an individual policy the insurer issues arising from conversion of the policy before receipt at the insurer’s home office of notice of the assignment.
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 2 - Group Policy Requirements › Section 17-201 - Employers

(a)    Subject to the requirements of this section, a policy may be issued to an employer, or to the trustees of a fund established by an employer, in which the employer or trustees shall be deemed the policyholder, to insure employees of the employer for the benefit of persons other than the employer.
(b)    (1)    The employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any class or classes of employees.
(2)    The policy may provide that the term “employees” shall include:
(i)    the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships if the business of the employer and of the affiliated corporations, proprietorships, or partnerships is under common control; and
(ii)    the individual proprietor or partners if the employer is an individual proprietorship or partnership.
(3)    The policy may provide that the term “employees” may include retired employees, former employees, and directors of a corporate employer.
(4)    A policy issued to insure the employees of a public body may provide that the term “employees” shall include elected or appointed officials.
(c)    (1)    The premium for the policy shall be paid either from the employer’s funds, or from funds contributed by the insured employees, or from both.
(2)    Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured employees must insure all eligible employees, except those who reject the coverage in writing.
(3)    An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 2 - Group Policy Requirements › Section 17-202 - Labor Unions

(a)    Subject to the requirements of this section, a policy may be issued to a labor union, or similar employee organization, which shall be deemed to be the policyholder, to insure members of the union or organization for the benefit of persons other than the union or organization or any of its officials, representatives, or agents.
(b)    The members eligible for insurance under the policy shall be all of the members of the union or organization, or all of any class or classes of members.
(c)    (1)    The premium for the policy shall be paid either from funds of the union or organization, or from funds contributed by the insured members specifically for their insurance, or from both.
(2)    Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured members specifically for their insurance must insure all eligible members, except those who reject the coverage in writing.
(3)    An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 2 - Group Policy Requirements › Section 17-203 - Employer or Labor Union Trustees

(a)    Subject to the requirements of this section, a policy may be issued to a trust or to the trustees of a fund established or adopted by two or more employers, or by one or more labor unions or similar employee organizations, or by one or more employers and one or more labor unions or similar employee organizations, which trust or trustees shall be deemed the policyholder, to insure employees of the employers or members of the unions or organizations for the benefit of persons other than the employers or the unions or organizations.
(b)    (1)    The persons eligible for insurance shall be all of the employees of the employers or all of the members of the unions or organizations, or all of any class or classes of employees or members.
(2)    The policy may provide that the term “employees” shall include:
(i)    the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietorships, or partnerships if the business of the employer and of the affiliated corporations, proprietorships, or partnerships is under common control;
(ii)    the individual proprietor or partners if the employer is an individual proprietorship or partnership;
(iii)    retired employees, former employees, and directors of a corporate employer; and
(iv)    trustees or their employees, or both, if their duties are principally connected with the trusteeship.
(c)    (1)    The premium for the policy shall be paid from funds contributed by the employer or employers of the insured persons, or by the union or unions or similar employee organizations, or by both, or from funds contributed by the insured persons or from both the insured persons and the employers or unions or similar employee organizations.
(2)    Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the insured persons specifically for their insurance must insure all eligible persons, except those who reject the coverage in writing.
(3)    An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.
2023 Maryland Statutes › Insurance › Title 17 - Group Life Insurance › Subtitle 2 - Group Policy Requirements › Section 17-204 - Professional Association Trustees

(a)    (1)    Subject to the requirements of this section, a policy may be issued to an association or to a trust or to the trustees of a fund established, created, or maintained for the benefit of members of one or more associations.
(2)    The association or associations:
(i)    shall have at the outset a minimum of 100 persons;
(ii)    shall have been organized and maintained in good faith for purposes other than that of obtaining insurance;
(iii)    shall have been in active existence for at least 2 years; and
(iv)    shall have a constitution and bylaws that provide that:
1.    the association or associations hold regular meetings not less than annually to further purposes of the members;
2.    except for credit unions, the association or associations collect dues or solicit contributions from members; and
3.    the members have voting privileges and representation on the governing board and committees.
(b)    The policy may insure members of the association or associations, employees of the association or associations, or employees of members, or one or more of the preceding or all of any class or classes of members or employees for the benefit of persons other than the employee’s employer.
(c)    (1)    The premium for the policy shall be paid from funds contributed by the association or associations, or by employer members, or by both, or from funds contributed by the covered persons or from both the covered persons and the association, associations, or employer members.
(2)    Except as provided in paragraph (3) of this subsection, a policy on which no part of the premium is to be derived from funds contributed by the covered persons specifically for the insurance must insure all eligible persons, except those who reject the coverage in writing.
(3)    An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.