Title 08, Title 08: Banking and Insurance

§ 3706. Exemption of proceeds—Life insurance (a) If a policy of insurance, whether heretofore or hereafter issued, is effected by any person on his or her own life, or on another life, in favor of a person other than himself or herself, or, except in cases of transfer with intent…

§ 3707. Disability benefits Except as may otherwise be expressly provided by the policy or contract, the proceeds or avails of all policies or contracts providing benefits on account of the insured’s disability that are supplemental to life insurance or annuity contracts heretofo…

§ 3708. Group insurance (a) A policy of group life insurance or group disability insurance or the proceeds thereof payable to the individual insured or to the beneficiary thereunder, shall not be liable, either before or after payment, to be applied by any process to pay any debt…

§ 3709. Annuity contracts—Assignability of rights (a) The benefits, rights, privileges, and options that under any annuity contract heretofore or hereafter issued are due or prospectively due the annuitant, shall not be subject to execution nor shall the annuitant be compelled to…

§ 3710. Power to contract—Purchase of annuities or insurance by minors (a) Any person of competent legal capacity may contract for insurance. (b) Any minor not less than 15 years of age, notwithstanding his or her minority, may contract for or own annuities or insurance or affirm…

§ 3711. Charitable life gifts (a) A life insurance contract may be entered into in which a person paying the consideration for such insurance has no insurable interest in the life of the individual insured, provided that a charitable, benevolent, educational, or religious institu…

§ 3712. Payment discharges insurer Whenever the proceeds of or payments under a life or disability insurance policy or annuity contract heretofore or hereafter issued become payable in accordance with the terms of such policy or contract, or the exercise of any right or privilege…

§ 3713. Assignment of insurance policies or annuity contracts (a) A policy of insurance or an annuity contract may be assignable or not assignable, as provided by its terms. Subject to its terms relating to assignability, any such policy or contract, whether heretofore or hereaft…

§ 3714. Life policy as separate property of married woman Every policy of life insurance heretofore or hereafter made payable to or for the benefit of a married woman, or after its issue heretofore or hereafter assigned, transferred or in any way made payable to a married woman, …

§ 3715. Forms for proof of loss to be furnished An insurer shall furnish upon written request of any person claiming to have a loss under an insurance policy issued by such insurer, forms of proof of loss for completion by such person, but such insurer shall not, by reason of the…

§ 3716. Claims administration not waiver Without limitation of any right or defense of an insurer otherwise, none of the following acts by or on behalf of an insurer shall be deemed to constitute a waiver of any provision of a policy or of any defense of the insurer thereunder: (…

§ 3717. Annuity contracts A company authorized to transact the business of life insurance may grant annuities. An annuity is a contract issued for a valuable consideration under which the obligations are assumed with respect to periodic payments for a specified term or terms or w…

§ 3718. Annuity considerations Insurers shall be subject to taxation according to the provisions of Title 32; provided, however, that no tax shall be due or payable as to considerations received for annuity contracts. Payment by an insurer of the tax as in Title 32 required shall…

§ 3718a. Charitable gift annuities (a) Charitable gift annuity is not insurance. The issuance of a charitable gift annuity by a qualified charitable organization does not constitute engaging in the business of insurance in this State. (b) Not unfair or deceptive trade practice. T…

§ 3719. Valuation of bonds, etc. Bonds or other evidences of debt having a fixed term and rate held by a life insurance company, assessment life association, or fraternal beneficiary association authorized to do business in this State, if amply secured and not in default as to pr…

§ 3731. Standard provisions required No policy of life insurance, other than group and pure endowments with or without return of premiums or of premiums and interest, shall be delivered or issued for delivery in this State unless it contains in substance all of the applicable pro…

§ 3732. “Industrial life insurance” defined For the purposes of this subchapter, “industrial life insurance” is that form of life insurance written under policies of face amount of $1,000.00 or less bearing the words “industrial policy” imprinted on the face thereof as part of th…

§ 3733. Excluded or restricted coverage in life insurance policies A clause in any policy of life insurance providing that such policy shall be incontestable after a specified period shall preclude only a contest of the validity of the policy, and shall not preclude the assertion…

§ 3734. Incontestability and limitation of liability after reinstatement (a) A reinstated policy of life insurance or annuity contract may be contested on account of fraud or misrepresentation of facts material to the reinstatement only for the same period following reinstatement…

§ 3735. Application as evidence (a) No application for the issuance of any life or disability insurance policy or annuity contract shall be admissible in evidence in any action relative to such policy or contract, unless a true copy of the application was attached to or otherwise…

§ 3736. Representations in applications All statements and descriptions in any application for a life insurance policy or annuity contract, by or in behalf of the insured or annuitant, shall be deemed to be representations and not warranties. Misrepresentations, omissions, concea…

§ 3750. Standard Nonforfeiture Law for Individual Deferred Annuities (a) This section shall be known as the Standard Nonforfeiture Law for Individual Deferred Annuities. (b) This section shall not apply to any reinsurance, group annuity purchased under a retirement plan or plan o…

§ 3760. Title This subchapter shall be known as the Standard Nonforfeiture Law for Life Insurance. (Added 2015, No. 63, § 2, eff. June 17, 2015.)

§ 3761. Definitions As used in this subchapter, “operative date of the Valuation Manual” means January 1 of the first calendar year that the Valuation Manual as defined in subchapter 4A of this chapter is effective. (Added 2015, No. 63, § 2, eff. June 17, 2015.)

§ 3762. Nonforfeiture benefits (a) In the case of policies issued on or after the effective date of this subchapter, as defined in section 3773 of this subchapter, a policy of life insurance, except as stated in section 3772 of this subchapter, shall not be delivered or issued fo…

§ 3763. Computation of cash surrender value (a) Any cash surrender value available under the policy in the event of default in a premium payment due on any policy anniversary, whether or not required by section 3762 of this subchapter, shall be an amount not less than the excess,…

§ 3764. Computation of paid-up nonforfeiture benefits A paid-up nonforfeiture benefit available under a policy in the event of default in a premium payment due on any policy anniversary shall be such that its present value as of the anniversary shall be at least equal to the cash…

§ 3765. Calculation of adjusted premiums (a)(1) This section shall not apply to policies issued on or after the operative date of section 3768 of this subchapter. Except as provided in subsection (c) of this section, the adjusted premiums for any policy shall be calculated on an …

§ 3766. Calculation of adjusted premiums; ordinary policies (a) This section does not apply to ordinary policies issued on or after the operative date of section 3768 of this subchapter. In the case of ordinary policies issued on or after the operative date of this section, all a…

§ 3767. Calculation of adjusted premiums; industrial policies (a) This section does not apply to industrial policies issued on or after the operative date of section 3768 of this subchapter. In the case of industrial policies issued on or after the operative date of this section,…

§ 3768. Calculations of adjusted premiums by the nonforfeiture net level premium method (a)(1) This section shall apply to all policies issued on or after the operative date of this section. Except as provided in subsection (g) of this section, the adjusted premiums for any polic…

§ 3769. Nonforfeiture benefits for indeterminate premium plans In the case of any plan of life insurance that provides for future premium determination, the amounts of that are to be determined by the insurance company based on estimates of future experience, or in the case of an…

§ 3770. Proration of values; net value of paid-up additions Any cash surrender value and any paid-up nonforfeiture benefit available under a policy in the event of default in a premium payment due at any time other than on the policy anniversary shall be calculated with allowance…

§ 3771. Consistency of progression of cash surrender values with increasing policy duration (a) This section, in addition to all other applicable sections of this chapter, shall apply to all policies issued on or after January 1, 1987. Any cash surrender value available under the…

§ 3772. Exceptions (a) This subchapter shall not apply to: (1) reinsurance; (2) group insurance; (3) pure endowment; (4) an annuity or reversionary annuity contract; (5) a term policy of uniform amount, which provides no guaranteed nonforfeiture or endowment benefits, or renewal …

§ 3773. Effective date; applicability After the effective date of this subchapter, any company may file with the Commissioner a written notice of its election to comply with the provisions of this subchapter after a specified date before January 1, 1948. After the filing of such …

§ 3791. Title This subchapter shall be known as the Standard Valuation Law. (Added 2015, No. 63, § 1, eff. June 17, 2015.)

§ 3791a. Definitions As used in this subchapter: (1) “Accident and health insurance” means contracts that incorporate morbidity risk and provide protection against economic loss resulting from accident, sickness, or medical conditions and as may be specified in the Valuation Manu…

§ 3791b. Reserve valuation (a) Policies and contracts issued prior to the operative date of the Valuation Manual. (1) The Commissioner shall annually value, or cause to be valued, the reserve liabilities, hereinafter called reserves, for all outstanding life insurance policies an…

§ 3791c. Actuarial opinion of reserves (a) Actuarial opinion of reserves after the operative date of the Valuation Manual; general. Every company with outstanding life insurance contracts, accident and health insurance contracts, or deposit-type contracts in this State and subjec…

§ 3791d. Computation of minimum standard Except as provided in sections 3791e, 3791f, and 3791m of this subchapter, the minimum standard for the valuation of policies and contracts issued prior to the effective date of this subchapter shall be that provided by the laws in effect …

§ 3791e. Computation of minimum standard for annuities (a) Except as provided in section 3791f of this subchapter, the minimum standard of valuation for individual annuity and pure endowment contracts issued on or after the effective date of this section and for annuities and pur…

§ 3791f. Computation of minimum standard by calendar year of issue (a) The interest rates used in determining the minimum standard for the valuation of the following shall be the calendar year statutory valuation interest rates as defined in this section: (1) life insurance polic…

§ 3791g. Reserve valuation method—Life insurance and endowment benefits (a) Except as otherwise provided in sections 3791g, 3791h, and 3791m of this subchapter, reserves according to the Commissioner’s reserve valuation method, for the life insurance and endowment benefits of pol…

§ 3791h. Reserve valuation method—Annuity and pure endowment benefits (a) This section shall apply to all annuity and pure endowment contracts other than group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation, established or …

§ 3791i. Minimum reserves (a) In no event shall a company’s aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after July 1, 1968 be less than the aggregate reserves calculated in accordance with the methods set fo…