Ch. 394

LAWS OF MARYLAND

retaliatory provision, § 61 of this article, shall consist of
such assets as are required by subsection (1) of this section, as
may be approved by the State Treasurer, in his discretion.

SECTION 2. AND BE IT FURTHER ENACTED, That the provisions
of § 19-710(d)(2)(ii) and § 19-710(d)(3) of the Health - General
Article apply only to health maintenance organizations that are
operating under a certificate of authority issued by the
Insurance Commissioner on or after the effective date of this
Act.

SECTION 3. AND BE IT FURTHER ENACTED, That any health
maintenance organization operating under a certificate of
authority issued by the Insurance Commissioner prior to the
effective date of this Act shall maintain, beginning on July 1,
1988, stock or surplus in the amount of $150,000 an amount that
is at least equal to the greater of $150,000 or 5% of the earned
subscription charges for the preceding 12 months; beginning July
1, 1989 stock or surplus in the amount of $200,000 an amount that
is at least equal to the greater of $200,000 or 5% of the earned
subscription charges for the preceding 12 months; and beginning
July 1, 1990 stock or surplus in an amount that is at least equal
to the greater of $250,000 or 5% of the earned subscription
charges for the preceding 12 months.

SECTION 4. AND BE IT FURTHER ENACTED, That any health
maintenance organization operating under a certificate of
authority issued by the Insurance Commissioner prior to the
effective date of this Act shall have beginning July 1, 1988 a
total of $150,000 $100,000 in cash or securities of the type
described in § 110 of Article 48A deposited through the
Commissioner and maintained in trust with the State Treasurer for
the protection of the members and creditors of the health
maintenance organization; beginning July 1, 1989 a total of
$200,000 in cash or securities of the type described in § 110 of
Article 48A deposited and maintained in trust with the State
Treasurer for the protection of the members and creditors of the
health maintenance organization; and beginning July 1, 1990 a
total of $250,000 in cash or securities of the type described in
§ 110 of Article 48A deposited and maintained in trust with the
State Treasurer for the protection of the members and creditors
of the health maintenance organization.

SECTION 5. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 17, 1988.

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