762                                        LAWS OF MARYLAND                                Ch. 349

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect June 1, 1973.

Approved May 7, 1973.

CHAPTER 350
(House Bill 1483)

AN ACT to repeal and re-enact, with amendments, Sections 354(a) and 359 of
Article 48A of the Annotated Code of Maryland (1972 Replacement Volume
and 1972 Supplement), title "Insurance Code," subtitle "20. Nonprofit Health
Service Plans," to remove the limitation on the application of this subtitle to
certain corporations organized under the provisions of Article 23 of the Code of
Public Laws of Maryland and to allow investment of funds in real estate for use
as medical facilities and medical equipment provided the investment doesn't
exceed [(sixty-five percent (65%) ]] fifty per cent (50%) of assets.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 354(a) and 359 of Article 48A of the Annotated
Code of Maryland (1972 Replacement Volume and 1972 Supplement), title
"Insurance Code," subtitle "20. Nonprofit Health Service Plans," be and they are
hereby repealed and re-enacted, with amendments, to read as follows:

354.

(a) Any corporation without capital stock heretofore or hereafter organized I,
under the provisions of Article 23 of the Code of Public General Laws of this
State,] for the purpose of establishing, maintaining and operating a nonprofit
health service plan whereby hospital, medical, chiropodial, pharmaceutical, dental
or optometric care is provided by a hospital, or hospitals, a physician or
physicians, a chiropodist or chiropodists, a pharmacist or pharmacists, a dentist or
dentists, and/or an optometrist or optometrists, to persons who become subscribers
to such plan under contracts which entitle each subscriber to certain hospital,
medical, chiropodial, pharmaceutical, dental or optometric care or any of them,
shall be governed and regulated by the provisions of this subtitle, and by no other
law relating to insurance unless such law is referred to under this subtitle, and no
law hereafter enacted shall apply to such corporations, unless they are expressly
designated therein, and specifically refer to such corporations.

359.

Every corporation subject to the provisions of this subtitle may invest its funds
only in securities permitted by the laws of this State for the investment of the
assets of life insurers, [[EXCEPT THAT CORPORATIONS SUBJECT TO
THE PROVISIONS OF THIS SUBTITLE MAY INVEST THEIR FUNDS IN
REAL ESTATE FOR USE AS MEDICAL FACILITIES AND MEDICAL
EQUIPMENT TO BE USED THEREIN, PROVIDED THE TOTAL OF SUCH
INVESTMENTS DOES NOT EXCEED [[SIXTY-FIVE PERCENT (65%)]]
FIFTY PER_ CENT (50%) OF THEIR ASSETS.]] PROVIDED HOWEVER,
THAT WHENEVER IT SHALL BE DETERMINED BY THE
COMMISSIONER THAT SUCH CORPORATION IS ENGAGED
PRINCIPALLY IN BUSINESS OF GROUP HEALTH CARE AS OPPOSED
TO THE SALE OF AN INSURANCE PRODUCT OR PLAN AS
DESCRIBED BY SECTION 354, OF THIS SUBTITLE. THE