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;

(b) Reduce the death benefit otherwise payable under the life insurance contract; and

(c) Are payable upon the occurrence of a single qualifying event that results in the payment of a benefit amount fixed at the time of acceleration.

(2) "Activities of daily living" has the meaning stated in COMAR 31.14.01.02B.

(3) “Chronic illness” means:

(a) The permanent inability to perform, without substantial assistance from another individual, a specified number of activities of daily living; or

(b) Permanent severe cognitive impairment and similar forms of dementia requiring substantial supervision of the insured.

(4) “Qualifying event” means one or more of the following:

(a) A medical condition that would result in a drastically limited life span as specified in the contract;

(b) A medical condition that requires extraordinary medical intervention without which the insured would die;

(c) A medical condition that usually requires continuous confinement in an eligible institution as defined in the contract if the insured is expected to remain there for the rest of the insured’s life;

(d) A medical condition that would, in the absence of extensive or extraordinary medical treatment, result in a drastically limited life span;

(e) A chronic illness; or

(f) Any other qualifying event that the Commissioner may approve.

(5) “Terminal illness” means a medical condition that is reasonably expected to result in a drastically limited life span for the insured as specified in the contract.