Md. Code Regs. 31.15.04.03

Current through Register Vol. 51, No. 12, June 14, 2024

Section 31.15.04.03 - Scope

A. To the extent provided here, this chapter shall apply to any solicitation, negotiation, or procurement of annuity contracts or deposit funds accepted in conjunction with individual life insurance policies or with annuity contracts which are subject to this chapter, occurring within this State. The chapter shall apply to an issuer of life insurance policies or annuity contracts including fraternal benefit societies.

B. This chapter shall apply to:

(1) Individual deferred annuities other than:

(a) Variable annuities,

(b) Investment annuities; and

(2) Deposit funds (that is, arrangements under which amounts to accumulate at interest are paid in addition to life insurance premiums or annuity considerations under provisions of individual life insurance policies or annuity contracts).

C. This chapter does not apply to:

(1) Group annuity contracts whose cost is borne in whole or in part by the annuitant's employer or by an association of which the annuitant is a member, provided the employer or the association bears all or part of the cost of the same or similar contracts insuring not less than ten employees or members. The cost of a contract may not be deemed to be borne by an annuitant's employer to the extent the annuitant's salary is reduced or the annuitant foregoes a salary increase.

(2) Immediate annuity contracts.

(3) A single advance payment of specific premiums equal to the discounted value of these premiums.

(4) A policyholder's deposit account established primarily to facilitate payment of regular premiums and when the anticipated balance of this account does not exceed twice the sum of the premiums payable in 1 year on all policies for which premiums are being paid from this account.

Md. Code Regs. 31.15.04.03