Home Table of Contents

§ 16-506. Contracts with cash surrender benefits

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 16. Life Insurance and Annuities
Subtitle 5. Maryland Standard Nonforfeiture Law for Individual Deferred Annuities (Refs & Annos)
MD Code, Insurance, § 16-506
§ 16-506. Contracts with cash surrender benefits
Application of section
(a) This section applies only to annuity contracts that provide cash surrender benefits.
Cash surrender benefits available before maturity
(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.
Calculation of present value
(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.
Cash surrender benefit not less than minimum nonforfeiture amount
(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.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1997, c. 70, § 7, eff. Oct. 1, 1997.
Formerly Art. 48A, § 408B.
MD Code, Insurance, § 16-506, MD INSURANCE § 16-506
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document