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Annuities A02G, A02I, A02.1G, A02.1I, A05G, A05I, A06.1G, A06.1I, A10

Payment of Premiums 24-A M.R.S.A. §2504 There shall be a provision relating to the time and place of payment of premiums  
Grace Period 24-A M.R.S.A. §2518 There shall be a grace period of one month but not less than 30 days within which any stipulated payment to the insurer falling due after the first may be made. The insurer may charge interest at a rate not to exceed 6% per annum for the number of days of grace elapsing before payment. The policy must continue in-force during the grace period.  
Entire Contract 24-A M.R.S.A. §2520 The contract constitutes the entire contract. If a copy of the application is endorsed upon or attached to the contract when issued, the contract and the application shall constitute the entire contract.  
Incontestability 24-A M.R.S.A. §2519 If any statements other than those relating to age, sex, and identity are required as a condition to issuing the annuity, the contract shall be incontestable after it has been inforce during the lifetime of the person for a period of two (2) years from its date of issue, except for non-payment of stipulated premiums.  
Misstatement of Age or Sex 24-A M.R.S.A. §2521 If the age or sex of the person has been misstated, the amount payable of benefits accruing under the contract shall be such as the stipulated payment or payments would have purchased according to the correct age or sex.
If the insurer has made any overpayment(s), an interest rate not to exceed 6% per annum, may be charged against the current or next succeeding payment(s).
Dividends 24-A M.R.S.A. §2522 There shall be a provision that the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract.  
Right to Examine 24-A M.R.S.A. §2515-A 10-Day Free Look  
Reinstatement 24-A M.R.S.A. §2523 The contract may be reinstated at any time within one year from the default in making stipulated payments, unless the CSV has been paid. All overdue stipulated payments shall be paid with interest thereon at a rate not to exceed 6% per annum. All other indebtedness with interest at the policy loan rate and E of I satisfactory to the insurer may be required.  
Agent Binding Authority 24-A M.R.S.A. §2422 and §2526 The authorized agent of an insurer shall be regarded as in the place of the insurer in all respects regarding any insurance affected by him or her.  
Minimum Values – Effective 5/27/03 24-A M.R.S.A. §2544

Minimum values for nonforfeiture of fixed rate annuities at any time prior to or at the commencement of annuity payments shall be calculated based on net considerations equal to 87 1/2 % of gross considerations and shall be accumulated at an annual rate of interest calculated as follows:
A. The rate of interest must be the lesser of 3.0% and the five-year Constant Maturity Treasury Rate as of a certain date, or an average thereof, which is decreased by 125 basis points provided the resulting rate is not less than 1.0%.
B. For annuities which provide for recalculation of the rate of interest, the contract must specify the rate reset date, method of calculating the new rate, and period of time covered by the new rate.
C. With respect to equity indexed annuities, the calculation in A, above may be reduced an additional 100 basis points, provided the additional reduction does not result in a value less than 1.0% nor greater than the market value of the benefit.
Note: This method of calculating minimum values for nonforfeiture is optional until May 27, 2005 for insurers filing new fixed rate annuity forms. During this optional period insurers may continue to set values using the formula in effect prior to May 27, 2003.

Exemption from Creditors 24-A M.R.S.A. §2431

Certain policies shall be exempt from claims of creditors and the rights of beneficiaries and assignees shall be protected.

Note: Limitations on the assignment of rights

Reversionary Annuities Only: 24-A M.R.S.A. §2524

24-A M.R.S.A. §2518 to §2522 apply except that under section 2518 the insurer may, at its option, provide for an equitable reduction of the amount of the annuity payments in settlement of an overdue payment in lieu of providing for deduction of such payments from an amount payable upon settlement under the contract.

The contract may be reinstated at any time within three (3) years from the date of default by making stipulated payments to the insurer, upon production of E of I satisfactory to the insurer, and upon condition that all overdue payments and any indebtedness to the insurer be paid, or within the limits permitted by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding 6% per annum compounded annually.

Group Annuities Only: 24-A M.R.S.A. §2432 The interest of any employee, beneficiary, joint or contingent annuitant in any policy, certificate, or fund in connection with a group annuity contract (GAC) or pension trust and his/her interest in any payments or proceeds shall not be subject to any execution, levy, attachment, garnishment, trustee process, or any other legal or equitable process.  
AIDS and Medical Lifestyle Standards Rule 490 The purpose of this rule is to clarify the standards applicable to written informed consent forms required to be completed by persons required to take a test for the presence of the antibody to the Human Immunodeficiency Virus (HIV) or for the Human Immunodeficiency Antigen by an insurer, nonprofit hospital service organization, nonprofit medical service organization, or a nonprofit health care plan, to establish standards for pretest and post-test counseling required to be provided to persons subject to testing as required by 5 M.R.S.A. Section 19203-A, and to establish standards for medical and lifestyle application questions and underwriting.  

Last Updated: August 22, 2012