ROBERT L. EHRLICH, JR., Governor                             Ch. 257

UNDER TITLE 6.5 OF THE STATE GOVERNMENT ARTICLE, ENSURING THAT ADEQUATE
CONSIDERATION IS GIVEN TO AN INDEPENDENT VALUATION OF THE NONPROFIT
HEALTH SERVICE PLAN.

(4)     Each member of the board shall demonstrate a commitment to the
mission of the nonprofit health service plan AS REQUIRED BY § 14-102(C) OF THIS
SUBTITLE.

(5)     An officer or employee of a nonprofit health service plan or any of its
affiliates or subsidiaries may not be appointed or elected to the board.

(6)     A nonprofit health service plan is subject to the provisions of § 2-419
of the Corporations and Associations Article.

(d) (1) This subsection applies to a corporation that is:

(i) issued a certificate of authority as a nonprofit health service
plan; and

(ii) the sole member of a corporation issued a certificate of
authority as a nonprofit health service plan.

(2) The board shall be composed of no more than 23 members, including:

(i) one nonvoting member, who is not a member of the Maryland
General Assembly, appointed by and serving at the pleasure of the President of the
Senate of Maryland;

(ii) one nonvoting member, who is not a member of the Maryland
General Assembly, appointed by and serving at the pleasure of the Speaker of the
House of Delegates; and

(iii) 21 members selected by the board, IN ACCORDANCE WITH THE
BYLAWS OF THE CORPORATION, including two consumer members, who satisfy the
requirements of paragraphs (13), (14), and (15) of this subsection.

(11) (i) [Board approval is required for] THE BOARD SHALL APPROVE
IN ADVANCE any action by the nonprofit health service plan, a corporation for which
the plan is the sole member, or any affiliate or subsidiary of the nonprofit health
service plan to:

[1. modify benefit levels;

2. materially modify provider networks or provider
reimbursement;

3. modify underwriting guidelines;

4. modify rates or rating plans;

5. withdraw a product or withdraw from a line or type of
business or geographic region; or

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