Ch. 507                                     1993 LAWS OF MARYLAND

(B) (1) THE COSTS TO THE COUNTY UNDER A CONTRACT ADOPTED UNDER
THIS SECTION MAY NOT EXCEED $50,000.

(2) ANY ACTION BY THE COUNTY COMMISSIONERS TO PARTICIPATE IN
A PUBLIC IMPROVEMENT IN ACCORDANCE WITH THIS SECTION SHALL BE:             

(I)      TAKEN AT A REGULARLY SCHEDULED MEETING OF THE
COUNTY COMMISSIONERS; AND

(II)     BASED ON WRITTEN PRICE QUOTATIONS FROM AT LEAST
THREE CONTRACTORS.               

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect

October 1, 1993.

Approved May 27, 1993.

CHAPTER 507
(House Bill 238)

AN ACT concerning                     

Nonprofit Health Service Plans - Regulation-Permitted Activity, Solvency, and Operation

FOR the purpose of clarifying admitted assets for insurers, including nonprofit health
service plans; explicitly subjecting corporations operating nonprofit health service
plans to regulation under certain provisions of the Insurance Code relating to the
valuation of assets, permitted investments, rehabilitation and liquidation, the Life
and Health Insurance Guaranty Corporation, penalties, annual statements,
examinations, certificates of authority, and insurance acquisitions disclosure and
control; defining certain terms; requiring approval by the Insurance Commissioner
of affiliates and subsidiaries of corporations operating nonprofit health service
plans; requiring that corporations operating health service plans file consolidated
annual statements and financial statements on each affiliate and subsidiary;
requiring the filing of certain other information; establishing certain minimum and
excessive surplus levels; permitting the Commissioner to alter certain surplus levels
under certain circumstances; providing for the phasing in of certain surplus levels;
clarifying the limited purpose of nonprofit health service plans; providing that
affiliates and subsidiaries may only engage in certain business activities relating
directly to nonprofit health service plans; clarifying that nonprofit health service
plans may only invest in certain entities under certain circumstances; providing for
a board of directors, including appointment of consumer members, terms of office,
qualifications, removal power of the Insurance Commissioner, duties of the board
and imposing of civil penalties for certain actions of the board, officers, and certain
persons; prohibiting nonprofit health service plans from contracting or commencing
business with certain entities; providing for the order of removal of certain board
members; setting out requirements for conversion of nonprofit corporations to
mutual or stock health insurers; and generally relating to the applicability of the

- 2574 -