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§ 16-109. Interest on benefits payable under life insurance policy

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 16. Life Insurance and Annuities
Subtitle 1. General Provisions (Refs & Annos)
MD Code, Insurance, § 16-109
§ 16-109. Interest on benefits payable under life insurance policy
Accrual of interest from date of death of insured
(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.
Proceeds of policy paid within 30 days of death of insured
(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.
Rate of interest
(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.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 416A.
MD Code, Insurance, § 16-109, MD INSURANCE § 16-109
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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