# Insurance (GIN)

## Title 5. Assets, Liabilities, Reserves, and Investments of Insurers

### Subtitle 3. Standard Valuation Law

#### Section 5-301

(a) In this  subtitle the following words have the meanings indicated.

(b) "Accident and health insurance contract" has the meaning stated in Sec. 5-201.1(a) of this title.

(c) "Appointed actuary" means a qualified actuary who is appointed in accordance with the valuation manual to prepare an opinion required by Sec. 5-201.1 of this title.

(d) "Company" has the meaning stated in Sec. 5-201.1(a) of this title.

(e) "Deposit-type contract" has the meaning stated in Sec. 5-201.1(a) of this title.

(f) "Life insurance policy" has the meaning stated in Sec. 5-201.1(a) of this title.

(g) "NAIC" means the National Association of Insurance Commissioners.

(h) "Operative date of the valuation manual" has the meaning stated in Sec. 5-201.1(a) of this title.

(i)

  (1) "Policyholder behavior" means any action a policyholder, contract holder, or any other person with the right to elect options, including a certificate holder, may take under a life insurance policy, an accident and health insurance contract, or a deposit-type contract issued on or after the operative date of the valuation manual.

  (2) "Policyholder behavior" includes behavior relating to lapse, withdrawal, transfer, deposit, premium payment, loan, annuitization,  or benefit elections prescribed by a life insurance policy, an accident and health insurance contract, or a deposit-type contract issued on or after the operative date of the valuation manual.

  (3) "Policyholder behavior" does not include an event of mortality or morbidity that results in benefits prescribed in their essential aspects by the terms of a life insurance policy, an accident and health insurance contract, or a deposit-type contract issued on or after the operative date of the valuation manual.

(j) "Principle-based valuation" means a reserve valuation that:

  (1) uses one or more methods or one or more assumptions determined by a company; and

  (2) meets the requirements of Sec. 5-314 of this subtitle.

(k) "Qualified actuary" has the meaning stated in Sec. 5-201.1(a) of this title.

(l) "Tail risk" means a risk that occurs when:

  (1) the frequency of low probability events is higher than expected under a normal probability distribution; or

  (2) events of very significant size or magnitude are observed.

(m) "Valuation manual" has the meaning stated in Sec. 5-201.1(a) of this title.

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