ROBERT L. EHRLICH, JR., Governor

Ch. 257

CHAPTER 257
(House Bill 341)

AN ACT concerning

Regulation and Acquisition of Nonprofit Health Service Plans Entities

FOR the purpose of extending the statute of limitations for a certain time period for
certain criminal violations under the Insurance Article; altering the purpose of
certain provisions of law relating to nonprofit health service plans; altering
certain provisions of law relating to the regulation and acquisition of certain
nonprofit health service plans; entities; altering the mission of a nonprofit
health service plan; altering the manner in which a nonprofit health service
plan must develop certain goals, objectives, and strategies; providing that the
charters, a certain charter and the laws, rules, and regulations of the
jurisdiction of domicile of a certain entities entity supercede and take precedence
over certain requirements under certain circumstances; altering the standards
the Maryland Insurance Commissioner must use to issue a certificate of
authority; requiring the Commissioner to consider a certain entity's inability to
comply with certain requirements in deciding determining whether to issue or
renew the certificate of authority of a nonprofit health service plan; altering the
applicability of certain statutory requirements for a board of directors of a
nonprofit health service plan; requiring certain board members of a nonprofit
health service plan to act in a certain manner consistent with in furtherance of
the mission of a nonprofit health service plan; altering the manner of selecting
board members of certain nonprofit health service plans; altering the actions for
which board approval is required; requiring the Commissioner to adopt certain
regulations; prohibiting certain board members and officers from receiving
certain personal or financial enrichment to the detriment of the nonprofit health
service plan or its mission; including as a principal function of a board of a
nonprofit health service plan the consideration of an independent valuation of a
nonprofit health service plan prior to making a certain other consideration;
specifying the manner in which certain officers of a nonprofit health service
plan must act; providing that a violation of certain provisions of this Act is an
unsound and unsafe business practice; altering a certain provision of law
relating to unsound and unsafe business practices; authorizing the Insurance
Commissioner to impose a certain civil penalty against certain officers or
directors who fail to take appropriate action in response to a certain warning;
altering certain provisions of law relating to certain actions by an officer,
director, or employee of a nonprofit health service plan; requiring that an
application for acquisition of a nonprofit health entity include a certain
valuation of the nonprofit health entity and a certain antitrust analysis;
specifying that a certain acquisition is not in the public interest unless certain
steps are taken to ensure that certain assets are spent in a certain manner;
prohibiting a certain regulating entity from making a certain determination
unless certain considerations are made nonprofit health entities have
considered certain risks; defining a certain term; authorizing certain directors of
a certain nonprofit health service plan to serve for a certain additional term until

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