3076                                         LAWS OF MARYLAND                                     Ch. 603

HAS PAID A RENEWAL FEE OF $100, ITS CERTIFICATE SHALL BE RENEWED.
586.

(A)  (1) EXCEPT AS PROVIDED IN SUBSECTIONS (B) AND (C) OF
THIS SECTION, A DENTAL PLAN ORGANIZATION OPERATING A DENTAL PLAN
ON OR AFTER JULY 1, 1984 SHALL ARRANGE FOR A SUITABLE BOND OR
SUITABLE RESERVES OBTAIN A SUITABLE BOND OR POSSESS SURPLUS FOR
THE PROTECTION OF PERSONS ENROLLED IN THE PLAN.

(2)  THE RESERVES OR BONDS SURPLUS OR BOND SHALL BE
EQUIVALENT TO 7 PERCENT OF GROSS CONTRACT AND CERTIFICATE INCOME
FOR 1 YEAR.

(3)  THE RESERVES SURPLUS OR BOND SHALL BE ADJUSTED
WITHIN 20 DAYS FOLLOWING A CHANGE IN ACTUAL GROSS CONTRACT AND
CERTIFICATE INCOME.

(4)  THE AMOUNT OF THE RESERVES SURPLUS OR BOND SHALL
BE ADJUSTED ANNUALLY, IF NECESSARY, ON JULY 1ST OF EACH
SUBSEQUENT YEAR.

(5)  THE AMOUNT OF THE RESERVES SURPLUS OR BOND
REQUIRED MAY NOT EXCEED $150,000.

(B)  (1) IF THE COMMISSIONER DETERMINES AFTER A HEARING THAT
THE RESERVES OR BONDS SURPLUS OR BOND PROVIDED BY A DENTAL PLAN
ORGANIZATION UNDER SUBSECTION (A) OF THIS SECTION ARE EXCESSIVE
IN AMOUNT, THE COMMISSIONER MAY REDUCE THE AMOUNT OF RESERVES
SURPLUS OR BOND REQUIRED BY THE DENTAL PLAN ORGANIZATION, BUT
ONLY IF THE COMMISSIONER DETERMINES THAT THE DENTAL PLAN
ORGANIZATION IS SOLVENT AND HAS UNENCUMBERED SURPLUS ASSETS IN AT
LEAST THE AMOUNT OF $75,000 IN EXCESS OF LIABILITIES.

(2) ANY DENTAL PLAN ORGANIZATION THAT IS PERMITTED TO
REDUCE THE AMOUNT OF ITS RESERVES SURPLUS OR BOND UNDER THIS
SUBSECTION SHALL MAINTAIN UNENCUMBERED SURPLUS ASSETS IN EXCESS
OF LIABILITIES IN NO LESS THAN THE AMOUNT OF $75,000 THEREAFTER.

(C) THE PROVISIONS OF THIS SECTION DO NOT APPLY TO DENTAL
PLANS WHERE:

(C) THE GROSS CONTRACT AND CERTIFICATE INCOME FOR ONE YEAR
OF A DENTAL PLAN ORGANIZATION PROVIDED FOR IN SUBSECTION (A) OF
THIS SECTION MAY NOT INCLUDE INCOME EARNED FROM A DENTAL PLAN
WHERE:

(1)  PARTICIPATION IS WHOLLY VOLUNTARY ON THE PART OF
THE ENROLLEE;

(2)  THE COST FOR THE DENTAL PLAN IS BORNE BY THE
ENROLLEE; AND

(3)  THE OPTION FOR PAYMENT IS BY MEANS OF PAYROLL
DEDUCTION ON A WEEKLY, EVERY 2 WEEKS, OR MONTHLY BASIS IS .
AVAILABLE TO THE ENROLLEE.