1626                                        LAWS OF MARYLAND                                    Ch. 441

Section 19-709(b), and 19-718(b)

Annotated Code of Maryland

(1982 Volume and 1985 Supplement)

BY repealing and reenacting, without amendments,

Article - Health - General
Section 19-718(a)
Annotated Code of Maryland
(1982 Volume and 1985 Supplement)

BY adding to

Article - Health - General

Section 19-706.1

Annotated Code of Maryland

(1982 Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows:

Article - Health - General
19-706.1.

(A)  SUBJECT TO THIS SECTION, THE PROVISIONS OF ARTICLE 48A,
SUBTITLE 10 OF THE CODE REGARDING THE REHABILITATION AND
LIQUIDATION OF INSURERS IS APPLICABLE TO HEALTH MAINTENANCE
ORGANIZATIONS.

(B) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, ANY

REHABILITATION OR LIQUIDATION OF A HEALTH MAINTENANCE
ORGANIZATION SHALL BE DEEMED TO BE THE REHABILITATION OR
LIQUIDATION OF AN INSURER AND SHALL BE CONDUCTED UNDER THE

SUPERVISION OF THE COMMISSIONER UNDER THE LAW GOVERNING THE
REHABILITATION OR LIQUIDATION OF INSURERS.

(2) THE PROVISIONS OF ARTICLE 48A, §§ 162, 162A, 163,
AND 164 OF THE CODE DO NOT APPLY TO THE REHABILITATION OR
LIQUIDATION OF A HEALTH MAINTENANCE ORGANIZATION.

(C)  THE COMMISSIONER MAY APPLY FOR AN ORDER DIRECTING THE
COMMISSIONER TO REHABILITATE OR LIQUIDATE A HEALTH MAINTENANCE

ORGANIZATION:

(1)  UPON ANY ONE OR MORE GROUNDS SET OUT IN ARTICLE
48A, SUBTITLE 10 OF THE CODE; OR

(2)  WHEN IN THE COMMISSIONER'S OPINION THE CONTINUED
OPERATION OF THE HEALTH MAINTENANCE ORGANIZATION WOULD BE
HAZARDOUS EITHER TO ITS MEMBERS OR TO THE PEOPLE OF THIS STATE.