HARRY HUGHES, Governor

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COMMISSIONER REQUIRES FOR ADEQUATE FINANCIAL EVALUATION;

(11)  COPIES OF ANY PROPOSED ADVERTISING AND

PROPOSED TECHNIQUES AND METHODS OF SELLING THE SERVICES OF
THE HEALTH MAINTENANCE ORGANIZATION; AND

(12)  A POWER OF ATTORNEY THAT IS EXECUTED BY THE
HEALTH MAINTENANCE ORGANIZATION APPOINTING THE COMMISSIONER
AS AGENT OF THE ORGANIZATION IN THIS STATE TO ACCEPT SERVICE
OF PROCESS IN ANY ACTION, PROCEEDING, OR CAUSE OF ACTION
ARISING IN THIS STATE AGAINST THE HEALTH MAINTENANCE
ORGANIZATION.

REVISOR'S NOTE: This section formerly appeared as the
second sentence of former Article 43, § 843(c).

In subsection (b)(5) of this section, the
reference to a "statement by each individual
referred to in item (3) of this section that
fully discloses" is substituted for the
requirement that the individuals "shall disclose
fully to the Commissioner and the governing body
of the organization", to specify the manner of
disclosure.

Subsection (b)(10)(ii) of this section is
rephrased for clarity and conformity to current
business practices.

As to the joint internal procedures, referred to
in subsection (b)(6) of this section, see §
19-705(b) of this subtitle.

The only other changes are in style.

The Commission to Revise the Annotated Code
notes, for consideration by the General Assembly,
that the phrase in subsection (b)(5) of this
section, "any possible conflict of interests", is
a broad, undefined requirement. The General
Assembly may wish to clarify what is required.

Defined terms: "Commissioner" § 19-701

"Health care services" § 19-701

"Health maintenance organization" § 19-701

"Includes"/"including" § 1-101

"Member" § 19-701 "Secretary" § 1-101

"Person" § 1-101 "Subscriber" § 19-701

"Physician" § 1-101

19-709. INITIAL FEES.

(A) APPLICATION FEE.

WHEN A HEALTH MAINTENANCE ORGANIZATION FILES ITS