2610

LAWS OF MARYLAND

[Ch. 544

554. RATES

IN APPLYING THE PROVISIONS OF SECTION 242 OF THE
INSURANCE CODE (ARTICLE 48A) DEALING WITH RATES AND RATE
FILINGS, THE COMMISSIONER SHALL PERMIT AN INITIAL PREMIUM
NOT IN EXCESS OF 130% OF THE RATE THAT WOULD OTHERWISE BE
APPLICABLE IF THE TERMS OF THE RATE FILING ARE SUCH THAT
ANY PORTION OF THE COLLECTED PREMIUMS THAT ARE ULTIMATELY
DETERMINED AS HAVING BEEN IN EXCESS OF THE SOCIETY'S
COSTS SHALL BE RETURNED ON A NONDISCRIMINATORY BASIS TO
THE POLICYHOLDERS OF THE SOCIETY.

555. MANAGEMENT AND ADMINISTRATION OF SOCIETY

AFFAIRS

(A) IF, IN THE JUDGMENT OF THE BOARD OF DIRECTORS,
THE AFFAIRS OF THE SOCIETY THEREBY MAY BE ADMINISTERED
SUITABLY AND EFFICIENTLY, THE SOCIETY MAY ENTER INTO A
CONTRACT, NOT TO EXCEED FIVE YEARS IN DURATION, WHEREBY
THE AFFAIRS OF THE SOCIETY ARE ADMINISTERED BY A LICENSED
INSURER. OR A LICENSED NONPROFIT HEALTH SERVICE PLAN,
[[OR THE MARYLAND AUTOMOBILE INSURANCE FUND,]] SUBJECT TO
SUCH CONTINUING DIRECTION BY THE BOARD OF DIRECTORS AS
SPECIFIED IN THE ARTICLES OF INCORPORATION, THE BYLAWS,
AND THE CONTRACT.

(B) UPON THE EXECUTION OF ANY CONTRACT, THE
SOCIETY SHALL PROMPTLY FILE A TRUE COPY WITH THE STATE
INSURANCE COMMISSIONER. THE CONTRACT SHALL BECOME
EFFECTIVE 30 DAYS FROM THE DATE OF FILING UNLESS THE
COMMISSIONER, PRIOR TO THE EFFECTIVE DATE. DISAPPROVES
THE CONTRACT [[AS ILLEGAL]] AS BEING CONTRARY TO LAW,
PUBLIC POLICY OR UNDULY ONEROUS AND STATES THE REASONS
FOR HIS FINDINGS.

SECTION 2. AND BE IT FURTHER ENACTED, That if any
provisions of Section 551 of Article 48A is ruled
unconstitutional, no other provision or application of
this Act shall be given effect; however, if any other
provisions of this Act or application to any person or
circumstance is held invalid for any reason in a court of
competent jurisdiction, the invalidity does not affect
other provisions or any other application of this Act
which can be given effect without the invalid provision
or application, and for this purpose the provisions of
this Act are declared severable.

SECTION 3. AND BE IT FURTHER ENACTED, That all laws
or parts of laws, public general or public local,
inconsistent with this Act, are repealed to the extent of
the inconsistency.