WILLIAM DONALD SCHAEFER, Governor                                Ch. 9

(II) THE COMMISSIONER MAY AMEND OR RESCIND ANY EXISTING
PLAN OF OPERATION IF THE COMMISSIONER FINDS THAT THE POOL IS NOT OPERATING
IN A FAIR, REASONABLE, AND FINANCIALLY SOUND MANNER.

(J) THE POOL SHALL BE OPERATIONAL AND REINSURE CLAIMS OF ELIGIBLE
HEALTH BENEFIT PLANS BY JULY 1, 1995.

(K) THE COMMISSIONER MAY ORDER THE DISSOLUTION OF THE POOL IF THE
COMMISSIONER DETERMINES THAT THE POOL IS NOT FINANCIALLY VIABLE, PROVIDED
THAT PROVISION IS MADE TO ENSURE THE PROTECTION OF INSUREDS INSURED BY THE
MEMBERS OF THE POOL.

708.

(A) THE PLAN OF OPERATION SHALL, AT A MINIMUM:

(1) ESTABLISH PROCEDURES FOR THE HANDLING AND ACCOUNTING OF
POOL ASSETS AND MONEYS AND FOR AN ANNUAL FISCAL REPORTING TO THE
COMMISSIONER;

(2) ESTABLISH PROCEDURES FOR REINSURING CLAIMS SUBMITTED TO THE
POOL IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBTITLE;

(3) ESTABLISH PROCEDURES FOR COLLECTING ASSESSMENTS FROM
MEMBERS TO REINSURE CLAIMS SUBMITTED TO THE POOL AND TO PAY FOR
ADMINISTRATIVE EXPENSES INCURRED OR ESTIMATED TO BE INCURRED DURING THE
PERIOD;

(4) ESTABLISH PROCEDURES FOR RECOUPING ANY NET LOSSES TO THE
POOL FOR THE CALENDAR YEAR BY ASSESSING REINSURING CARRIERS AS ESTABLISHED
IN § 709(B) OF THIS SUBTITLE; AND

(5) PROVIDE FOR ANY ADDITIONAL MATTERS AT THE DISCRETION OF THE
BOARD.

(B) THE BOARD SHALL HAVE THE GENERAL POWERS AND AUTHORITY GRANTED
UNDER THE LAWS OF THIS STATE TO HEALTH INSURANCE COMPANIES AND HEALTH
MAINTENANCE ORGANIZATIONS AUTHORIZED TO TRANSACT BUSINESS, EXCEPT THE
POWER TO ISSUE HEALTH BENEFIT PLANS DIRECTLY TO EITHER GROUPS OR
INDIVIDUALS.

(C) THE BOARD MAY:

(1) ENTER INTO CONTRACTS AS ARE NECESSARY OR PROPER TO CARRY OUT
THE PROVISIONS AND PURPOSES OF THIS SUBTITLE, INCLUDING AUTHORITY, WITH
APPROVAL OF THE COMMISSIONER, TO ENTER INTO CONTRACTS WITH SIMILAR
PROGRAMS OF OTHER STATES FOR THE JOINT PERFORMANCE OF COMMON FUNCTIONS
OR WITH PERSONS OR OTHER ORGANIZATIONS FOR THE PERFORMANCE OF
ADMINISTRATIVE FUNCTIONS;

(2) SUE OR BE SUED, INCLUDING TAKING ANY LEGAL ACTIONS NECESSARY
OR PROPER FOR RECOVERING ANY ASSESSMENTS AND PENALTIES FOR, ON BEHALF OF,
OR AGAINST THE POOL OR ANY PARTICIPATING CARRIERS;

- 581 -