Md. Code Regs. 31.09.16.03

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.09.16.03 - 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 COMAR31.14.01.02B.

(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 therefor 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.

Md. Code Regs. 31.09.16.03

Regulation .03 adopted effective 45:24 Md. R. 1164, eff. 12/6/2018