1518                                     LAWS OF MARYLAND                                 Ch. 721

discriminatory reason refuse to underwrite or cancel any contract for a service
for which the license is required, or deny a claim, or require a policyholder or
subscriber to accept less than the amount due; to empower the Insurance
Commissioner to conduct investigations and hearings to enforce the Section; to
provide certain procedures and standards upon which the Insurance
Commissioner may rely during hearings in enforcing the Section; and to provide
penalties for the violation thereof.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 354C be and it is hereby added to Article 48A
of the Annotated Code of Maryland (1972 Replacement Volume), title "Insurance
Code," subtitle "20. Nonprofit Health Service Plans,"' to follow immediately after
Section 354B thereof, to read as follows:

354C.

(A)        IT SHALL BE UNLAWFUL FOR ANY CORPORATION
REQUIRED TO BE LICENSED UNDER ANY SECTION OF THIS
SUBTITLE AND MAINTAINING OR OPERATING A NONPROFIT
HEALTH SERVICE PLAN TO DO OR CAUSE TO BE DONE, DIRECTLY
OR INDIRECTLY, ANY OF THE FOLLOWING ACTS:

(I)   TO MAKE, PUBLISH, DECLARE, FOLLOW OR PRACTICE ANY
UNDERWRITING STANDARD WITH RESPECT TO ANY NONPROFIT
HEALTH SERVICE PLAN WHICH IS ARBITRARY, UNFAIR,
CAPRICIOUS OR UNFAIRLY DISCRIMINATORY.

(II)   TO REFUSE TO UNDERWRITE OR CANCEL ANY CONTRACT,
CERTIFICATE OR POLICY UNDER A NONPROFIT HEALTH SERVICE
PLAN FOR ANY ARBITRARY, CAPRICIOUS OR UNFAIRLY
DISCRIMINATORY REASON.

(III)   TO REFUSE TO ENROLL OR CANCEL ANY PERSON UNDER
ANY EXISTING CONTRACT, CERTIFICATE OR POLICY UNDER A
NONPROFIT HEALTH SERVICE PLAN FOR ANY UNFAIR,
ARBITRARY, CAPRICIOUS OR UNFAIRLY DISCRIMINATORY
REASON.

(IV)     TO DENY A CLAIM MADE BY ANY PERSON UNDER A
CONTRACT, CERTIFICATE OR POLICY UNDER A NONPROFIT
HEALTH SERVICE PLAN FOR ANY UNFAIR, ARBITRARY,
CAPRICIOUS OR UNFAIRLY DISCRIMINATORY REASON.

(V)   TO REQUIRE WITHOUT JUST CAUSE ANY PERSON MAKING
A CLAIM UNDER A CONTRACT, CERTIFICATE OR POLICY UNDER A
NONPROFIT HEALTH SERVICE PLAN TO ACCEPT LESS THAN THE
AMOUNT DUE.

(B)       THE INSURANCE COMMISSIONER IS EMPOWERED TO
CONDUCT SUCH INVESTIGATIONS AND/OR HEARINGS AS HE
SHALL DEEM NECESSARY TO ENFORCE THIS SECTION. IN THE
CONDUCT OF SUCH INVESTIGATIONS AND/OR HEARINGS, THE
INSURANCE COMMISSIONER SHALL HAVE THE SAME POWERS
WITH RESPECT TO NONPROFIT HEALTH SERVICE PLANS AS ARE
GRANTED UNDER SUBTITLE 2 AND SUBTITLE 3 OF THIS ARTICLE
WITH RESPECT TO ANY OTHER INSURANCE ACTIVITY REGULATED
UNDER THIS ARTICLE, WITHOUT EXCEPTION.