ROBERT L. EHRLICH, JR., Governor                             Ch. 357

(III) VIOLATES § 14-102, § 14-115, OR § 14-139(C) OF THIS TITLE.

(2) "Unsound or unsafe business practice" includes:

(i) failing to comply with the notice requirements of § 14-119 of
this subtitle;

(ii) willfully hindering an examination of a nonprofit health service
plan or its affiliates or subsidiaries; and

(iii) failure of a director to attend at least 65% of the meetings of the
board during a period of 12 consecutive months.

(b) (1) If the Commissioner believes that an officer or director of a nonprofit
health service plan has engaged in an unsound or unsafe business practice, the
Commissioner shall send a warning to that individual.

(2) The Commissioner shall send a copy of the warning:

(i) by certified mail, return receipt requested, bearing a postmark
from the United States Postal Service, to each director of the nonprofit health service
plan; and

(ii) if the nonprofit health service plan is a corporation incorporated
in a state other than this State, to the insurance commissioner of the state in which
the corporation is incorporated.

(e) (1) If the nonprofit health service plan is incorporated in this State, the
Commissioner may remove the officer or director if the Commissioner determines
after a hearing that the unsound or unsafe business practice continued after the
warning.

(2)     A copy of the removal order shall be served on the individual removed
and each director of the nonprofit health service plan.

(3) The individual removed is entitled to a hearing under Title 2 of this
article.

(4)     Any person aggrieved by a final decision of the Commissioner under
this section may appeal the decision under § 2-215 of this article.

(F) (1) IF THE ATTORNEY GENERAL HAS REASON TO BELIEVE THAT A
NONPROFIT HEALTH SERVICE PLAN IS ENGAGING IN AN UNSOUND OR UNSAFE
BUSINESS PRACTICE, THE ATTORNEY GENERAL SHALL NOTIFY THE COMMISSIONER.

(2) IF THE COMMISSIONER FAILS TO TAKE ACTION UNDER THIS
SECTION WITHIN 60 DAYS AFTER NOTIFICATION BY THE ATTORNEY GENERAL, THE
ATTORNEY GENERAL MAY:

(I) INVESTIGATE THE UNSOUND OR UNSAFE BUSINESS PRACTICE;
AND

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