WILLIAM DONALD SCHAEFER, Governor

Ch. 754

(1986 Replacement Volume and 1987 Supplement)

BY adding to

Article 48A - Insurance Code

Section 356AA and 490J

Annotated Code of Maryland

(1986 Replacement Volume and 1987 Supplement)

BY repealing and reenacting, with amendments,

Article - Health - General

Section 19-706, 19-708, 19-709, 19-710, 19-711, and 19-714

Annotated Code of Maryland

(1987 Replacement Volume)

BY adding to

Article - Health - General

Section 19-711.1

Annotated Code of Maryland
(1987 Replacement Volume)

BY repealing

Section 3

Chapter 555 of the Acts of the General Assembly of 1984

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Chapter 555 of the Acts of 1984

[SECTION 3. AND BE IT FURTHER ENACTED, That any 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 Health
Maintenance Organization shall be required to maintain stock or
surplus in excess of a value of $1,000,000. The Commissioner may
waive the stock or surplus 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)
of this Act.]

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