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§ 16-408. Required provisions for reversionary annuity contracts

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 16. Life Insurance and Annuities
Subtitle 4. Annuity and Pure Endowment Contract Provisions (Refs & Annos)
MD Code, Insurance, § 16-408
§ 16-408. Required provisions for reversionary annuity contracts
In general
(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.
Reduction in annuity payments in settlement of overdue payment
(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.
Reinstatement of contract three years after date of default
(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.
Group annuities or annuities included in life insurance policies
(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.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 2003, c. 21, § 1, eff. April 8, 2003.
Formerly Art. 48A, § 409.
MD Code, Insurance, § 16-408, MD INSURANCE § 16-408
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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