WILLIAM DONALD SCHAEFER, Governor Ch. 754

process in any action, proceeding, or cause of action arising in
this State against the health maintenance organization; AND

(13) COPIES OF PROTOTYPE THE AGREEMENTS PROPOSED TO
BE MADE BETWEEN THE HEALTH MAINTENANCE ORGANIZATIONS AND
PROVIDERS OF HEALTH CARE SERVICES.

19-709.

(a)  When a health maintenance organization files its
initial application for a certificate of authority to operate, it
shall pay to the Commissioner a fee of $300.

(b)  In addition to the fee required under subsection (a) of
this section, each health maintenance organization shall pay a
reasonable sum[, not exceeding $7,500,] that the Commissioner
finds to be the cost of the investigations made by the
Commissioner and the Department as required under this subtitle.

19-710.

(a)  To qualify for a certificate of authority to operate as
a health maintenance organization, an applicant shall satisfy the
Commissioner that the applicant will meet the requirements of
this section.

(b)  The applicant shall conform to the definition of a
health maintenance organization.

(c)  The applicant shall establish and operate a bona fide
health maintenance organization that can provide health care
services in the proposed geographic area.

(d)  (1) The health maintenance organization shall be
actuarially sound.

(2) (i) Except as otherwise provided in this
paragraph, the stock or surplus that the health maintenance
organization is required to have shall be paid in full.

(ii) The health maintenance organization shall
have A stock or surplus that exceeds the liabilities of the
health maintenance organization by either IN THE AMOUNT THAT IS
AT LEAST EQUAL TO THE GREATER OF [$100,000] $250,000 or 5 percent
of the subscription charges earned during the prior calendar year
as recorded in the annual report filed by the health maintenance
organization with the Commissioner.

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

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