S.B. 537

VETOES

Article - Health - General

Section 19-735

Annotated Code of Maryland

(1990 Replacement Volume and 1992 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Health - General

19-735.

(A)     ANY FOREIGN HEALTH MAINTENANCE ORGANIZATION WITH A
CERTIFICATE OF AUTHORITY TO OPERATE A HEALTH MAINTENANCE
ORGANIZATION IN THIS STATE MAY BECOME A DOMESTIC HEALTH MAINTENANCE
ORGANIZATION OF THIS STATE BY COMPLYING WITH ALL OF THE REQUIREMENTS.
OF THE LAW RELATING TO THE FORMATION AND ORGANIZATION OF A DOMESTIC
HEALTH MAINTENANCE ORGANIZATION AND. BY DESIGNATING ITS. PRINCIPAL
PLACE OF BUSINESS AT A PLACE IN THIS STATE. ON BECOMING A DOMESTIC HEALTH
MAINTENANCE ORGANIZATION, THE HEALTH MAINTENANCE ORGANIZATION
SHALL BE ENTITLED TO CERTIFICATES AND LICENSES TO TRANSACT BUSINESS IN
THIS STATE ISSUED TO DOMESTIC HEALTH MAINTENANCE ORGANIZATIONS, AND
SHALL BE GIVEN RECOGNITION IN ALL RESPECTS AS A HEALTH MAINTENANCE
ORGANIZATION FORMED UNDER THE LAWS OF THIS STATE AS OF THE DATE OF
AUTHORIZATION AS A HEALTH MAINTENANCE ORGANIZATION IN ITS ORIGINAL
DOMICILIARY STATE, DISTRICT, TERRITORY, COMMONWEALTH, OR POSSESSION OF
THE UNITED STATES OF AMERICA, AND SHALL BE SUBJECT TO THE AUTHORITY AND
JURISDICTION OF THIS STATE.

(B)      (1) THE CERTIFICATE OF AUTHORITY, AGENTS APPOINTMENTS, RATES,
AND OTHER FORMS WHICH THE COMMISSIONER ALLOWS WHICH ARE IN EXISTENCE
AT THE TIME ANY FOREIGN HEALTH MAINTENANCE ORGANIZATION WITH A
CERTIFICATE OF AUTHORITY TO OPERATE A HEALTH MAINTENANCE
ORGANIZATION IN THIS STATE TRANSFERS ITS CORPORATE DOMICILE TO THIS
STATE OR TO ANY OTHER STATE BY MERGER, CONSOLIDATION, OR ANY OTHER
LAWFUL METHOD SHALL CONTINUE IN FULL FORCE AND EFFECT ON TRANSFER IF
THE HEALTH MAINTENANCE ORGANIZATION AT ALL TIMES RETAINS A
CERTIFICATE OF AUTHORITY IN THIS STATE.

(2) ALL OUTSTANDING SUBSCRIBER CONTRACTS OF A TRANSFERRING
HEALTH MAINTENANCE ORGANIZATION SHALL REMAIN IN FULL FORCE AND
EFFECT AND NEED NOT BE ENDORSED AS TO THE NEW NAME OF THE HEALTH
MAINTENANCE ORGANIZATION OR ITS NEW DOMICILIARY AND LOCATION UNLESS
SO ORDERED BY THE COMMISSIONER.

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