Maryland § 16-506
Full text of Maryland Maryland Code § 16-506, with citation guidance and answers to common questions.
§ 16-506.
(a) This section applies only to annuity contracts that provide cash surrender benefits.
(b) Cash surrender benefits available before maturity under an annuity contract may not be less than the remainder of:
(1) the present value as of the surrender date of the part of the maturity value of the paid-up annuity benefit that would be provided at maturity from considerations paid before the surrender date and any existing additional amount credited by the insurer to the contract; less
(2) the appropriate amount that reflects prior withdrawals from or partial surrenders of the contract and any indebtedness to the insurer on the contract, including interest due and accrued.
(c) The present value under subsection (b)(1) of this section shall be calculated using an interest rate not more than 1% higher than the interest rate specified in the contract for accumulating net considerations to determine the maturity value.
(d) (1) A cash surrender benefit may not be less than the minimum nonforfeiture amount at the time of surrender.
(2) A death benefit under a contract subject to this section shall equal at least the cash surrender benefit.
Frequently Asked Questions About Maryland § 16-506
What does Maryland Code § 16-506 cover?
Section 16-506 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Maryland § 16-506?
A common citation format is "Maryland Code § 16-506" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Maryland law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.
How does Maryland § 16-506 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.