Skip to Main Content
<< Back | Return to Main COMAR Search Page

14 records match your request.

FileAbstract
31.09.16.00.htm 31.09.16.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 09 LIFE INSURANCE AND ANNUITIES Chapter 16 Accelerated Benefits Authority: Insurance Article, §2-109, 5-301, 12-205(b)4) and (8) and 27-202, Annotated Code of Maryland
31.09.16.01.htm 31.09.16.01. 01 Purpose.. The purpose of this chapter is to regulate accelerated benefit provisions in individual and group life insurance policies and to provide required standards of disclosure.
31.09.16.02.htm 31.09.16.02. 02 Scope.. This chapter shall apply to all accelerated benefit provisions of individual and group life insurance policies issued or delivered in Maryland except those subject to Insurance Article, Title 18, Annotated Code of Maryland.
31.09.16.03.htm 31.09.16.03. 03 Definitions.. A. In this chapter, the following terms have the meanings indicted.. B. Terms Defined.. 1) “Accelerated benefits” means benefits payable under a life insurance contract that:. a) Are payable during the lifetime of the insured in anticipation of death or upon the occurrence of specified life-threatening or catastrophic conditions as defined by the policy or rider, to a policy owner or certificate holder;
31.09.16.04.htm 31.09.16.04. 04 Type of Product.. A. Accelerated benefit riders and life insurance policies with accelerated benefit provisions are primarily mortality risks rather than morbidity risks.B. The inclusion of terminal illness as a qualifying event shall be included in all accelerated benefit policies and riders.
31.09.16.05.htm 31.09.16.05. 05 Assignee or Irrevocable Beneficiary.. Prior to the payment of the accelerated benefit, the insurer shall obtain from an assignee or irrevocable beneficiary a signed acknowledgement of concurrence for payout. If the insurer is the assignee under the policy, no acknowledgement is required.
31.09.16.06.htm 31.09.16.06. 06 Criteria for Payment.. A. Lump Sum Settlement Option.. 1) The insurer shall include the option to take the benefit as a lump sum in the contract payment options.2) The benefit may not be made available as an annuity contingent upon the life of the insured.. B. No restrictions are permitted on the use of the proceeds.. C. If any death benefit remains after payment of an accelerated benefit, the accidental death benefit provision, if any, in the policy or rider may no
31.09.16.07.htm 31.09.16.07. 07 Disclosures.. A. Descriptive Title.. 1) The insurer shall include the term “accelerated benefit” in the policy or rider’s title.. 2) An accelerated benefit product being offered under this chapter may not be described or marketed as long-term care insurance or as providing long-term care benefits.B. Disclosure of Tax Consequences.. 1) A written disclosure stating that receipt of the accelerated benefits may be taxable and assistance should be sought from a personal tax advisor sh
31.09.16.08.htm 31.09.16.08. 08 Effective Date of the Accelerated Benefits.. A. The accelerated benefit provision shall be effective for accidents on the effective date of the policy or rider.B. The accelerated benefit provision shall be effective for illness no more than 30 days following the effective date of the policy or rider.
31.09.16.09.htm 31.09.16.09. 09 Waiver of Premiums.. A. The insurer may offer a waiver of premium for the accelerated benefit provision in the absence of a waiver of premium provision for the policy being in effect.B. At the time the benefit is claimed, the insurer shall explain to the policy holder or certificate holder any continuing premium requirements to keep the policy in force.
31.09.16.10.htm 31.09.16.10. 10 Discrimination.. An insurer may not:. A. Unfairly discriminate among insureds with differing qualifying events covered under the policy or among insureds with similar qualifying events covered under the policy;B. Apply further conditions on the payment of the accelerated benefits other than those conditions specified in the policy or rider.
31.09.16.11.htm 31.09.16.11. 11 Actuarial Standards.. A. Financing Options.. 1) The insurer may require a premium charge or cost of insurance charge for the accelerated benefit as follows:a) The insurer shall base the charge on sound actuarial principles; and. b) For group insurance, the insurer may reflect the additional cost in experience rating.. 2) The insurer may pay a present value of the face amount as follows:. a) The present value calculation shall be based on any applicable actuarial
31.09.16.12.htm 31.09.16.12. 12 Actuarial Disclosure and Reserves.. A. Actuarial Memorandum.. 1) A qualified actuary shall describe the accelerated benefits, the risks, the expected costs, and the calculation of statutory reserves in an actuarial memorandum accompanying each filing.2) The insurer shall maintain in its files descriptions of the bases and procedures used to calculate benefits payable under this chapter. The descriptions shall be made available for examination by the Commissioner upon request.
31.09.16.9999.htm 31.09.16.9999. Administrative History Effective date: December 6, 2018 (45:24 Md. R. 1164).
<< Back | Return to Main COMAR Search Page