Ch. 35

1997 LAWS OF MARYLAND

(3) THE LIABILITY OF A REINSURING CARRIER UNDER THIS
SUBSECTION MAY NOT EXCEED $10,000 IN ANY 1 CALENDAR YEAR WITH RESPECT TO
ANY INDIVIDUAL.

(F) ADJUSTMENT OF LIMITATIONS.

(1) THE BOARD ANNUALLY SHALL ADJUST THE INITIAL LEVEL OF
CLAIMS AND THE MAXIMUM LIMIT TO BE RETAINED BY THE REINSURING CARRIER
TO REFLECT INCREASES IN COSTS AND UTILIZATION WITHIN THE STANDARD
MARKET FOR HEALTH BENEFIT PLANS IN THE STATE.

(2) UNLESS THE BOARD PROPOSES AND THE COMMISSIONER APPROVES
A LOWER ADJUSTMENT FACTOR, THE ADJUSTMENT IN PARAGRAPH (1) OF THIS
SUBSECTION MAY NOT BE LESS THAN THE ANNUAL CHANGE IN THE MEDICAL
COMPONENT OF THE "CONSUMER PRICE INDEX FOR ALL URBAN CONSUMERS" OF
THE DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS.

(G) TERMINATION OF REINSURANCE.

A REINSURING CARRIER MAY TERMINATE REINSURANCE ON A PLAN
ANNIVERSARY FOR ONE OR MORE OF THE INDIVIDUALS IN A SMALL EMPLOYER
GROUP.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 709(a).

In subsections (c) and (g) of this section, the defined term "reinsuring carrier"
is substituted for the former references to a "small employer carrier" for
consistency within this section. Similarly, in subsections (e)(1) and (f)(1) of
this section, the defined term "reinsuring carrier" is substituted for the former
references to the "carrier".

Throughout subsection (e) and in subsection (g) of this section, the references
to an "individual" are substituted for the former references to an "employee
or dependent" for brevity.

In subsection (e)(2) of this section, the reference to the "Pool" is substituted
for the former reference to the "program" because there is no "program" of
reinsurance, only the "Pool".

Defined terms: "Board" § 15-1201
"Commissioner" § 1-101
"Eligible employee" § 15-1201
"Health benefit plan" § 15-1201
"Pool" § 15-1201
"Reinsurance" § 1-101
"Reinsuring carrier" § 15-1201
"Small employer" § 15-1201
"Standard Plan" § 15-1201

- 1164 -