- A. Before the issuance of any individual contract on a variable basis, the insurer shall reasonably satisfy itself that the total amounts being applied and proposed to be applied to provide the prospective annuitant with income on a variable basis will not substantially exceed the amount which would be required to purchase the income in a predetermined dollar amount which the annuitant can reasonably expect to receive.
- B. In determining the reasonably expectable fixed dollar income, the insurer may consider, alone or in combination, any direct source, such as a pension, annuity, Social Security benefit, or trust fund, as well as any indirect source, such as an asset having a principal amount expressed in fixed dollars and capable of being used to produce a fixed dollar income, as, for example bonds, mortgages or life insurance policies.
Authority: Insurance Article, §§2-109, 8-442(d), and 16-601—16-603, Annotated Code of Maryland
Effective date: June 1, 1965
Amended effective November 1, 1973
Regulation .03 amended effective August 22, 1988 (15:17 Md. R. 2048)
Chapter recodified from COMAR 09.30.42 to COMAR 31.09.04 effective September 7, 1998 (25:18 Md. R. 1439)
Regulation .02B amended effective April 25, 2016 (43:8 Md. R. 498)
Regulation .03 amended effective April 6, 2020 (47:7 Md. R. 385)
Regulation .08L amended effective April 25, 2016 (43:8 Md. R. 498)