# Insurance (GIN)

## Title 17. Group Life Insurance

### Subtitle 1. General Provisions

#### Section 17-101

(a) Unless approved by the Commissioner, a group life insurance policy may not be offered to a resident of the State under a group life insurance policy issued:

  (1) to a group other than one described in Subtitle 2 of this title; or

  (2) in another jurisdiction unless the type of group to be covered conforms substantially to a type of group described in Subtitle 2 of this title.

(b) The premium for the policy shall be paid either from the policyholder's funds or from funds contributed by the covered persons, or from both.

(c) An insurer may exclude or limit the coverage on any person as to whom evidence of individual insurability is not satisfactory to the insurer.

(d) A policy of group life insurance may not be delivered or issued for delivery in the State if the policy excludes or restricts liability for death that is the result of an act of terrorism that the covered person did not commit and in which the covered person did not participate.

(e) An insurer who seeks to solicit coverage for Maryland residents under a group life insurance policy issued in another jurisdiction shall include in the certificate form used in connection with the coverage a notice on the first page in 12-point bold type that states:

"The group insurance policy providing coverage under this certificate was issued in a jurisdiction other than Maryland and may not provide all of the benefits required by Maryland law."

#### Section 17-102

(a) Subject to subsection (b) of this section, interest on benefits payable under a policy of group life insurance issued in the State shall accrue and be payable from the date of death of the insured until the date on which the proceeds of the policy are paid.

(b)

  (1) An insurer is not required to pay interest on benefits if the proceeds of the policy are paid within 30 days after the date of death of the insured.

  (2) If proof of death is submitted to the insurer more than 180 days after the date of death of the insured, interest shall accrue and be payable from the date on which proof of death is submitted to the insurer until the date on which the proceeds of the policy are paid.

(c) Interest under this section shall accrue and be payable at a rate not less than the rate of interest payable on death proceeds left on deposit with the insurer.

#### Section 17-103

An insurer that issues a policy to a creditor to insure debtors of the creditor shall provide to the creditor for delivery to each debtor insured under the policy a form that states that:

(1) the life of the debtor is insured under the policy; and

(2) a death benefit paid under the policy because of the debtor's death shall be applied to reduce or extinguish the indebtedness.

#### Section 17-104

(a) An insured under a policy of group life insurance, in accordance with an arrangement among the insured, the group policyholder, and the insurer, may assign to any person any or all of the rights and benefits conferred on the insured by the policy or by law, including:

  (1) the right to have issued to the insured an individual policy of life insurance arising from conversion as set forth in Sec.Sec. 17-309 through 17-311 of this title; and

  (2) the right to name a beneficiary.

(b) An assignment made under this section, even if made before the effective date of this section:

  (1) vests in the assignee all rights and benefits that are assigned; and

  (2) entitles the insurer to deal with the assignee as the owner of all rights and benefits conferred on the insured under the policy:

    (i) in accordance with the terms of the assignment; but

    (ii) without prejudice to the insurer on account of a payment the insurer makes or an individual policy the insurer issues arising from conversion of the policy before receipt at the insurer's home office of notice of the assignment.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)