A life insurer may not deliver in the State, as part of or in combination with an insurance, endowment, or annuity contract, and additional to the rights, dividends, and benefits arising out of the contract, an agreement or plan that:
(1) provides for the accumulation of profits over a period of years and for payment of all or part of the accumulated profits only to members or policyholders of a designated group or class who continue as members or policyholders until the end of a specified period of years;
(2) provides that, on the death of anyone other than a beneficiary or an insured under the contract, the owner or beneficiary of the contract shall receive the payment or granting of anything of value;
(3) provides that all or part of the premiums or consideration for the contract, dividends, coupons, reserves, special reserves, excess interest, or money in excess of the normal reserve required to meet the contractual guarantees of the contract are to be placed or invested in special funds or segregated accounts without insurance or life contingency features, if the funds or earnings are divided among those taking the contract or their beneficiaries or assignees; or
(4) as an inducement to or in connection with the sale or acceptance of the contract, provides for:
(i) the sale, solicitation, or delivery of stock or shares of stock in a company;
(ii) a benefit certificate, securities, or special advisory board contract, or other similar contracts or resolutions; or
(iii) policy dividends bearing a stated relationship to dividends on the stock of a company.
Structure Maryland Statutes
Title 16 - Life Insurance and Annuities
Subtitle 1 - General Provisions
Section 16-101 - Scope of Title
Section 16-102 - Wholesale Life Insurance Authorized
Section 16-103 - Assessable Life Insurance or Annuities Prohibited
Section 16-104 - Back-Dating Policies and Applications Prohibited
Section 16-105 - Right to Surrender Policy or Contract for Cancellation
Section 16-106 - Exchange, Alteration, or Conversion of Policies and Contracts
Section 16-107 - Contestability and Liability of Reinstated Policies and Contracts
Section 16-108 - Holding Proceeds
Section 16-109 - Interest on Benefits Payable
Section 16-110 - Payment of Proceeds Without Letters of Administration
Section 16-111 - Proceeds Exempt From Creditors
Section 16-112 - Prohibited Agreements or Plans
Section 16-113 - Funding Agreements
Section 16-114 - Charitable Gift Annuities
Section 16-115 - Business of Burial Insurance
Section 16-116 - Public Entity
Section 16-117 - Retained Asset Accounts
Section 16-118 - Failure to Search Death Master File
Section 16-119 - Life Insurance on the Life of a Minor
Section 16-120 - Maintenance of Records of Insurance Transactions