Ch. 507 1993 LAWS OF MARYLAND
(I) FAILING TO COMPLY WITH THE NOTICE REQUIREMENTS OF §
360C OF THIS ARTICLE;
(II) WILLFULLY HINDERING ANY EXAMINATION OF A NONPROFIT
HEALTH SERVICE PLAN OR OF ITS AFFILIATES OR SUBSIDIARIES; AND OR
(III) FAILURE OF A DIRECTOR TO ATTEND AT LEAST 70% 65% OF
THE MEETINGS OF THE BOARD DURING ANY PERIOD OF 12 CONSECUTIVE MONTHS.
(B) (1) (I) IF THE COMMISSIONER BELIEVES THAT AN OFFICER OR
DIRECTOR OF A NONPROFIT HEALTH SERVICE PLAN HAS ENGAGED IN AN UNSAFE
OR UNSOUND BUSINESS PRACTICE, THE COMMISSIONER SHALL SEND A WARNING
TO THE OFFICER OR DIRECTOR.
(II) A COPY OF THE WARNING SHALL BE DELIVERED TO THE
SECRETARY OF LICENSING AND REGULATION.
(2) A COPY OF THE WARNING SHALL BE SENT BY CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, BEARING A POSTMARK FROM THE UNITED STATES
POSTAL SERVICE, TO EACH DIRECTOR OF THE NONPROFIT HEALTH SERVICE PLAN.
(3) IF THE NONPROFIT HEALTH SERVICE PLAN IS A CORPORATION
INCORPORATED IN A STATE OTHER THAN THIS STATE, THE COMMISSIONER SHALL
SEND A COPY OF THE WARNING TO THE INSURANCE COMMISSIONER FOR THE
STATE WHERE THE CORPORATION IS INCORPORATED.
(C) IF THE NONPROFIT HEALTH SERVICE PLAN IS INCORPORATED IN THIS
STATE:
(1) THE COMMISSIONER MAY REMOVE THE OFFICER OR DIRECTOR IF
THE COMMISSIONER DETERMINES, AFTER A HEARING, THAT THE UNSAFE OR
UNSOUND BUSINESS PRACTICE CONTINUED AFTER THE WARNING.
(2) A COPY OF THE REMOVAL ORDER SHALL BE SERVED ON THE
INDIVIDUAL REMOVED AND THE DIRECTORS OF THE NONPROFIT HEALTH SERVICE
PLAN.
(3) THE INDIVIDUAL REMOVED IS ENTITLED TO A HEARING UNDER
SUBTITLE 2 OF THIS ARTICLE.
(4) ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE
COMMISSIONER UNDER THIS SECTION MAY APPEAL THE DECISION UNDER § 40 OF
THIS ARTICLE.
360C.
IN ADDITION TO COMPLYING WITH THE REQUIREMENTS OF § 58A OF THIS
ARTICLE, IF AN OFFICER OR DIRECTOR KNOWS THAT A NONPROFIT HEALTH
SERVICE PLAN OR ANY AFFILIATE OR SUBSIDIARY OF THE PLAN IS IMPAIRED, THE
OFFICER OR DIRECTOR SHALL IMMEDIATELY NOTIFY THE COMMISSIONER OF THE
IMPAIRMENT. THIS SECTION DOES NOT APPLY WHERE THE COMMISSIONER HAS
ALREADY BEEN NOTIFIED OF THE IMPAIRMENT BY ANOTHER OFFICER OR
DIRECTOR OR THE CHIEF EXECUTIVE OFFICER.
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