HARRY HUGHES, Governor

2537

AN ACT concerning

Insurance - Nonprofit Health Service Plans

FOR the purpose of requiring nonprofit health service plans
to maintain unencumbered assets in certain amounts
after certain dates.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 355(d)

Annotated Code of Maryland

(1979 Replacement Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article 48A - Insurance Code

355.

(d) Any corporation authorized ON OR AFTER JULY 1,
1982 to issue contracts under the provisions of this
subtitle shall at all times maintain unencumbered assets in
the amount of [$25,000] $75,000 in excess of liabilities. ,
provided, however, that any ANY corporation which received
its authorization under this subtitle prior to [July 1,
1969] JULY 1, 1982, shall MAINTAIN UNENCUMBERED ASSETS IN
EXCESS OF LIABILITIES IN THE AMOUNT OF $25,000 PRIOR TO be
exempt from the requirements of this subsection until [July
1, 1971] JULY 1, 1984, AND IN THE AMOUNT OF $75,000
THEREAFTER, and, provided further, that the Insurance
Commissioner may, upon petition, extend THE LATTER DATE
UNTIL JULY 1, 1985 this exemption period once, for one year,
if [he] THE COMMISSIONER is satisfied that the petitioning
corporation will be able to meet the requirements of this
subsection within the period of the one-year extension.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1982.

Approved May 20, 1982.

CHAPTER 260
(Senate Bill 225)
AN ACT concerning