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§ 16-507. Contracts without 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, § 16-507
§ 16-507. Contracts without cash surrender benefits
Currentness
In general
(a) This section applies only to annuity contracts that do not provide cash surrender benefits.
Present value of paid-up annuity benefit as nonforfeiture option before maturity
(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.
Interest rated used to calculate present value
(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.
Present value of paid-up annuity benefit not less than minimum forfeiture amount
(d) The present value of a paid-up annuity benefit may not be less than the minimum nonforfeiture amount at the time of surrender.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 408B.
MD Code, Insurance, § 16-507, MD INSURANCE § 16-507
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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