Marvin Mandel, Governor                        1037

(2)  If not incorporated, a list of all persons owning an interest
in the applicant, the officers thereof, and the parties to any operat-
ing or management agreement affecting the applicant, together with
a copy of such agreement.

(3)  A financial statement certified by a registered or certified
public accountant within the previous six months, presenting fairly,
in accordance with generally accepted accounting principles, the
financial position of the applicant and containing such information
as the Commissioner may prescribe. The Commissioner may at Ms
discretion accept a financial statement certified by a registered or
certified public accountant within the previous year for an applicant
doing business within the State prior to September 1, 1971, JANU-
ARY 1, 1972.

(4) A copy of its service contract, the terms of which shall not:

(i) contain inconsistent, ambiguous or misleading clauses or excep-
tions or conditions which deceptively affect the risk purported to be
assumed or the service to be performed;

(ii) contain any inequitable provision or provisions without sub-
stantial benefit to the member or subscriber; or

(iii) provide for the payment of fees which are unreasonable in
relation to the services agreed to be performed.

(5)  Evidence of security, which may be shown by depositing with
the Treasurer of the State of Maryland, who shall maintain the
same in trust, registered United States government bonds having a
market value at all times of not less than One Hundred Thousand
Dollars ($100,000), or a corporate surety bond in such form as the
Commissioner may prescribe in a sum of not less than One Hundred
Thousand Dollars ($100,000), in favor of the State of Maryland on
behalf of members and subscribers residing therein. Said bond shall
be issued by a surety company authorized to do business in this
State, and it shall be conditioned upon the faithful performance by
the applicant of its obligations under this Article, including pay-
ment of any fines, fees or penalties imposed on it or restitution
ordered pursuant to the provisions of this Article, but the aggregate
liability of the surety for all breaches of the conditions of the bond
shall, in no event, exceed the amount of such bond. The surety on
the bond shall have the right to cancel such bond by giving thirty
days notice to the Commissioner and thereafter shall be relieved of
liability for any breach of condition occurring after the effective date
of said cancellation. The Commissioner may promulgate rules and
regulations specifying conditions concerning said bond and provid-
ing methods for termination of said bond.

(6)  The bond or deposit provided for in subparagraph (5) shall
be maintained so long as the licensee has any outstanding liability
or obligation in this State. Upon proof satisfactory to the Commis-
sioner that the licensee has ceased to do business and that all its
liabilities and obligations have been satisfied, the Commissioner shall
authorize the Treasurer of the State of Maryland to return the
security to the licensee.

(7)  In the event an application for certificate of authority filed
hereunder is not approved, the Division shall retain fifty dollars of
the fee paid to it in connection with said application and return
the balance to the applicant.