WILLIAM DONALD SCHAEFER, Governor                            Ch. 507

(A)     IN ADDITION TO THE REQUIREMENTS OF § 58A OF THIS ARTICLE, IF A
CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, TREASURER, OR ANY
MEMBER OF THE BOARD OF DIRECTORS KNOWS THAT A NONPROFIT HEALTH
SERVICE PLAN OR ITS AFFILIATE OR SUBSIDIARY IS IMPAIRED, THAT CHIEF
EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, TREASURER, OR MEMBER OF THE
BOARD OF DIRECTORS SHALL IMMEDIATELY NOTIFY THE COMMISSIONER OF THE
IMPAIRMENT.

(B)     THIS SECTION DOES NOT APPLY WHERE THE COMMISSIONER HAS
ALREADY BEEN NOTIFIED OF THE IMPAIRMENT BY A DIRECTOR OR BY THE CHIEF
EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, OR TREASURER.

360D.

(A)     AN OFFICER, DIRECTOR, OR EMPLOYEE OF A CORPORATION OPERATING
UNDER THIS SUBTITLE MAY NOT:

(1)      WILLFULLY VIOLATE ANY PROVISION OF THIS ARTICLE OR A
REGULATION ADOPTED UNDER THIS ARTICLE;

(2)       WILLFULLY MISREPRESENT OR CONCEAL A MATERIAL FACT IN ANY
STATEMENT, REPORT, RECORD, OR COMMUNICATION SUBMITTED TO THE
COMMISSIONER;

(3)       WILLFULLY INTENTIONALLY MISREPRESENT A MATERIAL FACT TO
THE BOARD OF TRUSTEES DIRECTORS;

(4)      MISAPPROPRIATE OR FAIL TO PROPERLY ACCOUNT FOR MONEY
BELONGING TO THE CORPORATION OR TO AN INSURER, AGENT, BROKER, INSURED,
OR A CERTIFICATE HOLDER;

(5)      ENGAGE IN FRAUDULENT OR DISHONEST PRACTICES IN
CONNECTION WITH THE PROVISION OR ADMINISTRATION OF A HEALTH SERVICE

PLAN;

(6)      WILLFULLY FAIL TO PRODUCE RECORDS OR TO ALLOW AN
EXAMINATION UNDER § 358 OF THIS ARTICLE; OR

(7)      WILLFULLY FAIL TO COMPLY WITH A LAWFUL ORDER OF THE
COMMISSIONER.

(B)      (1) A VIOLATION OF SUBSECTION (A) OF THIS SECTION SHALL SUBJECT
THE VIOLATOR TO A CIVIL PENALTY OF UP TO $5,000 FOR EACH VIOLATION.

(2) IN LIEU OF OR IN ADDITION TO THE IMPOSITION OF A CIVIL
PENALTY, THE COMMISSIONER MAY REQUIRE THE VIOLATOR TO MAKE
RESTITUTION TO ANY PERSON WHO HAS SUFFERED FINANCIAL INJURY OR DAMAGE
AS A RESULT OF THE VIOLATION.

(C)      IN DETERMINING THE AMOUNT OF FINANCIAL PENALTY TO BE IMPOSED,
THE COMMISSIONER SHALL CONSIDER THE FOLLOWING:

(1) THE SERIOUSNESS OF THE VIOLATION;

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