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Session Laws, 1993
Volume 772, Page 2581   View pdf image
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WILLIAM DONALD SCHAEFER, Governor                         Ch. 507

(3)     That each contract issued, or proposed to be issued, to subscribers to the
plan is in a form approved by the Insurance Commissioner, and that the rates charged, or
proposed to be charged, for each form of such contract are fair and reasonable; AND


(I)      $100,000; OR


[(4) That no contributions to the funds of the corporation for working capital
are repayable by the corporation except out of the earned premiums over and above
operating expenses, payments to participating hospitals, physicians, chiropodists,
chiropractors, pharmacists, dentists, psychologists, or optometrists and such reserve as the
Insurance Commissioner may deem adequate;

(5)     That the amount of money actually received by the applicant upon the
terms specified in paragraph (4) hereof for working capital is sufficient to carry all
acquisition costs and operating expenses for a period of at least three months from the
date of the issuance of the certificate of authority or license, but in no case to be less than
ten thousand dollars ($10,000), provided, however, that any corporation seeking an initial
certificate of authority under this subtitle after July 1, 1969, shall have working capital of
at least $100,000;

(6)     That the corporation shall maintain a reasonable reserve. If the
Commissioner determines after a hearing that the reserves are excessive in amount, he
may order the corporation to submit a plan for distribution of the excess in a fair and
equitable method, or in the event the corporation fails to submit such a plan within 60
days, he may compile a plan and order the corporation to implement it. The distribution
shall be made only to subscribers who are covered by the corporation at the time
distribution is made. Reserves equal to 2 months of the nonprofit health service plan's
prior calendar year's claims and operating expenses shall be considered reasonable.]

(c) Any corporation to which such certificate of authority or license has been
issued, until expiration or revocation thereof, shall be authorized to issue contracts in the
form or forms filed with the Insurance Commissioner, to the persons who may become
subscribers to such plan.

[(d) Any corporation authorized on or after July 1, 1982 to issue contracts under
the provisions of this subtitle shall at all times maintain unencumbered assets in the
amount of $75,000 in excess of liabilities. Any corporation which received its
authorization under this subtitle prior to July 1, 1982, shall maintain unencumbered
assets in excess of liabilities in the amount of $25,000 prior to July 1, 1984, and in the
amount of $75,000 thereafter, provided that the Insurance Commissioner may, upon
petition, extend the latter date until July 1, 1985 if the Commissioner is satisfied that the
petitioning corporation will be able to meet the requirements of this subsection within the
period of the one-year extension.]

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Session Laws, 1993
Volume 772, Page 2581   View pdf image
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