§ 5-307. Policies and contracts issued on or after operative date of Standard Nonforfeiture Law...
West's Annotated Code of MarylandInsurance
MD Code, Insurance, § 5-307
§ 5-307. Policies and contracts issued on or after operative date of Standard Nonforfeiture Law--reserve valuation method for life insurance and endowment benefits
Method used to calculate reserve of policies providing uniform amount of insurance or uniform premiums
(a)(1) In this subsection, “guaranteed benefits” means future guaranteed life insurance and endowment benefits.
(2) Except as otherwise provided in paragraph (4) of this subsection and in §§ 5-308 and 5-311 of this subtitle, for the life insurance and endowment benefits of a policy that provides for a uniform amount of insurance and requires the payment of uniform premiums, the reserve according to the Commissioners reserve valuation method shall be the amount, if any, that the present value, at the date of valuation, of the guaranteed benefits under the policy exceeds the present value, at the date of valuation, of any future modified net premiums for the policy, as determined under paragraph (3) of this subsection.
(3)(i) For purposes of this subsection, the modified net premiums for a policy equal a uniform percentage of the respective contract premiums for the guaranteed benefits under the policy calculated so that the present value, at the date of issue of the policy, of the sum of all the modified net premiums equals the sum of:
2. The net level annual premium determined under this subparagraph may not exceed the net level annual premium on the 19-year premium whole life plan for insurance of the same amount at an age 1 year higher than the age at issue of the policy for which the reserve is calculated under this subsection.
Method used to calculate reserve of policies providing varying amount of insurance or varying premiums
(b)(1) This subsection applies to:
(ii) group annuity contracts and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or maintained by an employer, an employee organization, or both, unless the plan provides individual retirement accounts or individual retirement annuities under § 408 of the Internal Revenue Code;
(2) For a policy, contract, or benefit to which this subsection applies, the reserve according to the Commissioners reserve valuation method shall be calculated by a method consistent with the principles of subsection (a) of this section, disregarding in the determination of modified net premiums any extra premiums charged because of impairments or special hazards.
Credits
Added by Acts 1995, c. 36, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 83.
MD Code, Insurance, § 5-307, MD INSURANCE § 5-307
Current with all legislation from the 2023 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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