WILLIAM DONALD SCHAEFER, Governor

Ch. 9

(2) THE GENERAL PROCUREMENT LAW PROVISIONS OF DIVISION II OF THE
STATE FINANCE AND PROCUREMENT ARTICLE; AND

(3) THE PROVISIONS OF ARTICLE 64A (MERIT SYSTEM) OF THE CODE.

711.

(A) THE BOARD SHALL REPORT TO THE COMMISSIONER ON JUNE 1 OF EACH
YEAR. THE REPORT SHALL, ATA MINIMUM, DESCRIBE:

(1) THE OPERATIONS OF THE POOL FOR THE PRECEDING CALENDAR YEAR;

(2) AN AUDITED STATEMENT OF THE FINANCIAL CONDITION OF THE POOL
AS OF DECEMBER 31 OF THE PRECEDING CALENDAR YEAR; AND

(3) AN AUDITED DETAILED STATEMENT OF THE REVENUES AND
EXPENDITURES OF THE POOL MADE DURING THE PRECEDING CALENDAR YEAR.

(B) THE OPERATIONS OF THE BOARD SHALL BE SUBJECT TO AN ANNUAL AUDIT
BY AN INDEPENDENT AUDITOR, AND THE AUDIT REPORT AND WORKING PAPERS SHALL
BE SUBJECT TO REVIEW BY THE LEGISLATIVE AUDITOR.

706. 712.

(A) ON OR BEFORE MARCH 1 OF EACH YEAR, EACH INSURER THAT HOLDS A
CERTIFICATE OF AUTHORITY IN THE STATE AND PROVIDES HEALTH INSURANCE IN
THE STATE, EACH HEALTH MAINTENANCE ORGANIZATION THAT IS LICENSED TO
OPERATE IN THE STATE, AND EACH NONPROFIT HEALTH SERVICE PLAN THAT IS
LICENSED TO OPERATE IN THE STATE SHALL SUBMIT AN ANNUAL REPORT IN A
FORM REQUIRED BY THE COMMISSIONER THAT INCLUDES, FOR THE PRECEDING
CALENDAR YEAR, THE FOLLOWING DATA ON ITS HEALTH BENEFIT PLANS SPECIFIC
TO THIS STATE:

(1)      PREMIUMS WRITTEN;

(2)      PREMIUMS EARNED;

(3) TOTAL AMOUNT OF INCURRED CLAIMS INCLUDING RESERVES FOR
CLAIMS INCURRED BUT NOT REPORTED AT THE END OF THE PREVIOUS YEAR;

(4)      TOTAL AMOUNT OF INCURRED EXPENSES, INCLUDING
COMMISSIONS, ACQUISITION COSTS, GENERAL EXPENSES, TAXES, LICENSES, AND
FEES, USING ESTIMATES WHEN NECESSARY;

(5)      LOSS RATIO; AND

(6)      EXPENSE RATIO.

(B) (1) IF THE LOSS RATIO OF AN INSURER OR HEALTH MAINTENANCE
ORGANIZATION IS LESS THAN TO 75 PERCENT OR IF ITS EXPENSE RATIO IS MORE
THAN 15 20 PERCENT, THE COMMISSIONER MAY REQUIRE THE INSURER OR HEALTH
MAINTENANCE ORGANIZATION TO FILE NEW RATES FOR ITS HEALTH BENEFIT
PLANS.

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