|
1264 LAWS OF MARYLAND Ch. 436
Insurance Commissioner — Reserves
FOR the purpose of empowering the Insurance Commissioner in
a certain instance to order any corporation operating a
nonprofit health service plan to submit a plan for
distribution of surplus capital reserves; empowering
the Commissioner in a certain instance to compile a
plan and compel the corporation to implement it;
providing for the amount of reserves to be considered
reasonable; and deleting certain obsolete language.
BY repealing and reenacting, with amendments,
Article 48A — Insurance Code
Section 355(b) (6)
Annotated Code of Maryland
(1972 Replacement Volume and 1978 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:
Article 48A — Insurance Code
355.
(b) The Insurance Commissioner shall issue a
certificate of authority or license to each applicant upon
the payment of the fees provided for by § 41 of this article
and upon being satisfied:
(6) That the corporation shall maintain a
minimum reserve equal to at least 3% of the subscription
charges earned during the prior calendar year as shown on
the annual statement filed in the office of the
Commissioner. [Any corporation now operating under this
section shall have until December 31, 1973, to comply with
50" of this requirement and until December 31, 1974, to
comply with the balance of such requirement.] IF THE
COMMISSIONER DETERMINES AFTER A HEARING THAT THE RESERVES
ARE EXCESSIVE IN AMOUNT, HE MAY ORDER THE CORPORATION TO
SUBMIT A PLAN FOR DISTRIBUTION OF THE EXCESS IN A FAIR AND
EQUITABLE METHOD HE DEEMS FAIR AND EQUITABLE, OR IN THE
EVENT THE CORPORATION FAILS TO SUBMIT SUCH A PLAN WITHIN 30
60 DAYS, HE MAY COMPILE A PLAN AND ORDER THE CORPORATION TO
IMPLEMENT IT. RESERVES EQUAL TO 2 MONTHS OF THE NONPROFIT
HEALTH SERVICE PLAN'S PRIOR CALENDAR YEAR'S CLAIMS AND
OPERATING EXPENSES SHALL BE CONSIDERED REASONABLE__PROVIDED
THEY ARE IN EXCESS OF MINIMUM RESERVE REQUIREMENTS.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1979.
Approved May 29, 1979.
|
