Ch. 394

LAWS OF MARYLAND

(iii) No health maintenance organization shall
be required to maintain a stock or surplus in excess of a value
of $1,000,000.

(3) (I) FOR THE PROTECTION OF THE HEALTH MAINTENANCE
ORGANIZATION'S MEMBERS AND CREDITORS, THE APPLICANT SHALL DEPOSIT
AND MAINTAIN IN TRUST WITH THE STATE TREASURER $250,000 $100,000
IN CASH OR GOVERNMENT SECURITIES OF THE TYPE DESCRIBED IN § 110
OF ARTICLE 48A.

(II) 1. TO THE EXTENT APPLICABLE, THE DEPOSITS
SHALL BE ACCEPTED AND HELD IN TRUST BY THE STATE TREASURER IN
ACCORDANCE WITH THE PROVISIONS OF §§ 108 THROUGH 118 OF ARTICLE
48A.

2. FOR THE PURPOSE OF APPLYING THIS
SUBPARAGRAPH, A HEALTH MAINTENANCE ORGANIZATION SHALL BE TREATED
AS AN INSURER.

[(3)] (4) The Commissioner may waive the stock or
surplus AND DEPOSIT requirements contained in this subsection if
the Commissioner is satisfied that:

(i) The health maintenance organization has
sufficient net worth and an adequate history of generating net
income to assure financial viability for the next year;

(ii) The health maintenance organization's
performance and obligations are guaranteed by another person with
sufficient net worth and an adequate history of generating net
income; or

(iii) The assets of the health maintenance
organization or contracts with insurers, governments, providers,
or other persons are sufficient to reasonably assure the
performance of the health maintenance organization's obligations.

Chapter 555 of the Acts of 1984

SECTION 3. AND BE IT FURTHER ENACTED, That [and health

maintenance organization certified by the Insurance Commissioner
prior to the effective date of this Act shall maintain stock or
surplus as follows: effective July 1, 1984 in an amount that is
the greater of $100,000 or 1% of the earned subscription charges
for the preceding 12 months; effective July 1, 1985 in an amount
that is equal to the greater of $100,000 or 3% of the earned

subscription charges for the preceding 12 months. No] NO Health

Maintenance organization shall be required to maintain stock or
surplus in excess of a value of $1,000,000. The INSURANCE

Commissioner may waive the stock or surplus AND DEPOSIT

requirements contained in this section if the Commissioner is
satisfied the health maintenance organization meets one of the
criteria under Section 19-710(d)[(3)](4) of this Act.

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