Ch. 507

1993 LAWS OF MARYLAND

CORPORATION LICENSED UNDER THIS SUBTITLE AND TO ITS BOARD OF DIRECTORS
TO MAKE GOOD THE DEFICIENCY WITHIN 60 THE TIME PERIOD SPECIFIED BY THE
COMMISSIONER, NOT TO EXCEED 120 DAYS AFTER SERVICE OF THE NOTICE.

(B)      THE DEFICIENCY MAY BE MADE GOOD IN CASH OR IN ASSETS ELIGIBLE
FOR THE INVESTMENT OF THE INSURER'S FUNDS UNDER § 359 OF THIS SUBTITLE.

(C)      A CORPORATION LICENSED UNDER THIS ARTICLE SHALL MAY BE
DEEMED INSOLVENT AND THE COMMISSIONER MAY INSTITUTE DELINQUENCY
PROCEEDINGS AGAINST IT UNDER SUBTITLE 10 OF THIS ARTICLE IF THE
DEFICIENCY IS NOT MADE GOOD AND PROOF OF CORRECTION IS NOT FILED WITHIN
60 DAYS AFTER THE NOTICE OF DEFICIENCY HAS BEEN SERVED ON THE
CORPORATION AND ITS BOARD OF DIRECTORS THE TIME PERIOD SPECIFIED BY THE
COMMISSIONER.

(D)     (1) NOTWITHSTANDING SUBSECTION (C) OF THIS SECTION, A
CORPORATION LICENSED UNDER THIS SUBTITLE MAY APPLY FOR A SINGLE
EXTENSION OF UP TO 60 ADDITIONAL DAYS TO CORRECT A DEFICIENCY.

(2) AN EXTENSION OF THE TIME ALLOWED TO CORRECT A DEFICIENCY
MAY BE GRANTED BY THE COMMISSIONER IF:

(I)       THE CORPORATION CAN SHOW GOOD CAUSE WHY THE
DEFICIENCY WAS NOT CORRECTED IN THE INITIAL 60 DAYS AFTER THE NOTICE OF
DEFICIENCY WAS SERVED ON THE CORPORATION TIME PERIOD SPECIFIED BY THE
COMMISSIONER; AND

(II)     THE DEFICIENCY EXISTS BECAUSE OF:

1.        AN INCREASED SURPLUS REQUIRED BY THE
COMMISSIONER; OR

2.        THE DISALLOWANCE BY THE COMMISSIONER OF
CERTAIN ASSETS' OR REDUCTION OF THE VALUE OF CERTAIN ASSETS WHICH ARE
CARRIED IN THE CORPORATION'S ACCOUNTS.

356AA.

(a)      (1) IN THIS SECTION AND IN §§ 356AB AND 356AC OF THIS SUBTITLE,
"HEALTH INSURER" MEANS AN INSURER AUTHORIZED TO WRITE HEALTH
INSURANCE, AS DEFINED UNDER § 66 OF THIS ARTICLE.

(2) A corporation THAT IS INCORPORATED UNDER THE LAWS OF THIS
STATE AND subject to this subtitle may convert to a for-profit STOCK HEALTH insurer
subject to the provisions of this article under a plan and procedure approved by the
Commissioner.

(b)     The Commissioner may not approve any plan or procedure unless THE PLAN
OR PROCEDURE:

(1) [It is] IS equitable to enrollees and [shareholders] CERTIFICATE
HOLDERS, if any, of the corporation;

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