Ch. 357 2003 LAWS OF MARYLAND
14-111.
A SUBJECT TO THE PROVISIONS OF THIS ARTICLE, A certificate of authority
issued under this subtitle authorized a corporation to:
(1) issue contracts in the form filed with the Commissioner to persons
that become subscribers to the plan;
(2) FINANCE CAPITAL IMPROVEMENT PROJECTS THROUGH THE
MARYLAND HEALTH AND HIGHER EDUCATIONAL FACILITIES AUTHORITY AS
PROVIDED UNDER ARTICLE 43C OF THE CODE;
(3) FINANCE CAPITAL IMPROVEMENT PROJECTS THROUGH THE
MARYLAND ECONOMIC DEVELOPMENT CORPORATION AS PROVIDED UNDER ARTICLE
83A, TITLE 5, SUBTITLE 2 OF THE CODE; AND
(4) PARTNER WITH THE STATE AND OTHER PUBLIC OR PRIVATE
ENTITIES TO PROVIDE SERVICES OR ADMINISTER PROGRAMS INTENDED TO
ADDRESS COMMUNITY HEALTH CARE NEEDS.
14-115.
(a) (1) In this section the following words have the meanings indicated.
(2) "Board" means the board of directors of a nonprofit health service
plan.
(3) "Immediate family member" means a spouse, child, child's spouse,
parent, spouse's parent, sibling, or sibling's spouse.
(b) Subsections (c) through [(f)] (G) of this section apply THIS SECTION
APPLIES to a nonprofit health service plan that is incorporated under the laws of the
State and operates under a certificate of authority issued by the Commissioner under
this subtitle.
(e) (1) The business and affairs of a nonprofit health service plan shall be
managed under the direction of a board of directors.
(2) The board and its individual members are fiduciaries FOR THE
BENEFIT OF THE CORPORATION and shall act:
(i) in good faith;
(ii) in a manner that is reasonably believed to be in the best
interests of the corporation; [and]
(III) IN A MANNER THAT IS REASONABLY BELIEVED TO BE IN
FURTHERANCE OF THE CORPORATION'S NONPROFIT MISSION; AND
[(iii)] (IV) with the care that an ordinarily prudent person in a like
position would use under similar circumstances.
(3) THE PRINCIPAL FUNCTIONS OF THE BOARD SHALL INCLUDE:
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