HARRY HUGHES, Governor

1043

(II) ANY OTHER WORDS GENERALLY REGARDED AS
DESCRIPTIVE OF THE INSURANCE INDUSTRY.

(2) THIS SUBSECTION DOES NOT APPLY TO AN INSURER
OR HEALTH SERVICE CORPORATION THAT IS LICENSED AND REGULATED
UNDER THE LAWS OF THIS STATE, EXCEPT AS TO ITS HEALTH
MAINTENANCE ORGANIZATION ACTIVITIES THAT ARE AUTHORIZED AND
REGULATED UNDER THIS SUBTITLE.

(B) HEALTH MAINTENANCE ORGANIZATION.

EXCEPT AS AUTHORIZED BY THE COMMISSIONER UNDER THIS
SUBTITLE, A PERSON OTHER THAN A HEALTH MAINTENANCE
ORGANIZATION REGULATED UNDER THIS SUBTITLE MAY NOT DESIGNATE
ITS SERVICES, OPERATIONS, OR FUNCTIONS AS A "HEALTH
MAINTENANCE ORGANIZATION" OR USE ANY OTHER TITLE OR
DESIGNATION IF THE ARRANGEMENT OF SERVICES, OPERATIONS, OR
FUNCTIONS SUBSTANTIALLY FALL UNDER THE DEFINITION, OF A
HEALTH MAINTENANCE ORGANIZATION IN § 19-701 OF THIS
SUBTITLE.

REVISOR'S NOTE: This section formerly appeared as
Article 43, § 853.

The only changes are in style.

Defined terms:, "Commissioner" § 19-701
"Health maintenance organization" § 19-701
"Person" § 1-101

19-727. APPLICABILITY OF TAX LAWS.

(A)  IN GENERAL.

EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, A
HEALTH MAINTENANCE ORGANIZATION IS NOT EXEMPTED FROM ANY
STATE, COUNTY, OR LOCAL TAXES SOLELY BECAUSE OF THIS
SUBTITLE.

(B)  TAX ON PREMIUMS.

(1)  EACH HEALTH MAINTENANCE ORGANIZATION THAT IS
AUTHORIZED TO OPERATE UNDER THIS SUBTITLE IS EXEMPTED FROM
PAYING THE PREMIUM TAX IMPOSED UNDER ARTICLE 81, § 136 OF
THE CODE.

(2)  PREMIUMS RECEIVED BY AN INSURER UNDER
POLICIES THAT PROVIDE HEALTH MAINTENANCE ORGANIZATION
BENEFITS ARE NOT SUBJECT TO THE PREMIUM TAX IMPOSED UNDER
ARTICLE 81, § 136 OF THE CODE TO THE EXTENT:

(I) OF THE AMOUNTS ACTUALLY PAID BY THE
INSURER TO A NONPROFIT HEALTH MAINTENANCE ORGANIZATION THAT
OPERATES ONLY AS A HEALTH MAINTENANCE ORGANIZATION; OR