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Terms Used In Maryland Code, INSURANCE 16-409

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Contract: A legal written agreement that becomes binding when signed.
An annuity contract may include a rider or supplemental contract provision that offers a contract holder reimbursement or payment for long-term home health care or long-term care in a nursing home or other related institution:

(1) instead of or in addition to the annuity benefits payable under the contract; or

(2) instead of all or part of the cash surrender or other nonforfeiture value of the contract.