Ch. 754

LAWS OF MARYLAND

CHAPTER 754

(Senate Bill 162)

AN ACT concerning

Prepaid Health Plans Regulations Health Insurance

Contracts - Health Maintenance Organizations - Providers

FOR the purpose of requiring all persons who solicit the sale of
certain health plans, dental plans, and health maintenance
organizations to be licensed by the Insurance Commissioner;
providing for the issuance of a certain certificate;
requiring certain qualifications for licensing; providing
for an exemption from the written examination requirement
for certain persons in certain circumstances; requiring
certain preferred provider organizations to be registered
with submit certain information to the Insurance Commission;
providing for an exemption from the written examination
requirement for certain persons in certain circumstances;
defining certain terms; requiring certain arrangements,
contracts, and agreements to be with the Commissioner;
providing for certain filing submission fees and penalties;
removing a certain limitation on the investigation costs the
Insurance Commissioner may impose on a health maintenance
organization; increasing incrementally the amount of stock
or surplus that a health maintenance organization is
required to have to initially operate a health maintenance
organization; making certain organizations mergers or
consolidations of a certain health maintenance organization
organizations subject to the certain insurance code
procedures; establishing procedures for the conversion of
nonprofit health maintenance organizations and nonprofit
health service plans to for-profit health maintenance
organizations and for-profit insurers, respectively;
requiring that certain deposits be made and be held in trust
by the State Treasurer; providing for a waiver of the
deposit requirement; requiring the terms of agreement
between a health maintenance organization and providers of
health services to contain ascertain hold harmless clause;
requiring the Office of Licensing and Certification Programs
of the Department of Health and Mental Hygiene to report to
the State Finance Committee certain committees certain
regulatory changes; providing for certain technical changes;
providing for a delayed effective date under certain
circumstances for a certain part of this Act; and generally
relating to the operation of prepaid health plans.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 108 , 165, 166(a), 173, 178, and 354(a)

Annotated Code of Maryland

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