Ch. 9

1993 LAWS OF MARYLAND

(3) TAKE ANY LEGAL ACTION NECESSARY TO AVOID THE PAYMENT OF
IMPROPER CLAIMS AGAINST THE BOARD;

(4) DEFINE THE HEALTH BENEFIT PLANS AND MEDICAL CONDITIONS FOR
WHICH CLAIMS MAY BE REINSURED WITH THE POOL IN ACCORDANCE WITH THE
REQUIREMENTS OF THIS SUBTITLE;

(5) ESTABLISH RULES, CONDITIONS, AND PROCEDURES PERTAINING TO
THE REINSURANCE OF CLAIMS BY THE POOL;

(6) ESTABLISH ACTUARIAL FUNCTIONS AS APPROPRIATE FOR THE
OPERATION OF THE POOL;

(7) ASSESS REINSURING CARRIERS IN ACCORDANCE WITH THE PROVISIONS
OF § 709 OF THIS SUBTITLE AND MAKE ADVANCE INTERIM ASSESSMENTS AS MAY BE
REASONABLE AND NECESSARY FOR ORGANIZATIONAL AND INTERIM OPERATING
EXPENSES WITH ANY INTERIM ASSESSMENTS TO BE CREDITED AGAINST ANY
ASSESSMENTS DUE FOLLOWING THE CLOSE OF THE FISCAL YEAR;

(8) APPOINT APPROPRIATE COMMITTEES AS NECESSARY TO PROVIDE
TECHNICAL ASSISTANCE IN THE OPERATION OF THE POOL, POLICY AND OTHER
CONTRACT DESIGN, AND ANY OTHER FUNCTION WITHIN THE AUTHORITY OF THE POOL;
AND

(9) BORROW MONEY TO CARRY OUT THE PURPOSES OF THE POOL.

709.

(A) (1) A REINSURING CARRIER MAY REINSURE WITH THE POOL AS PROVIDED
IN THIS SUBSECTION.

(2) AT A MINIMUM, THE POOL SHALL REINSURE UP TO THE LEVEL OF
COVERAGE SPECIFIED UNDER THE COMPREHENSIVE STANDARD HEALTH BENEFIT
PLAN.

(3) A SMALL EMPLOYER CARRIER MAY REINSURE AN .ENTIRE EMPLOYER
GROUP WITHIN 60 DAYS OF THE COMMENCEMENT OF THE GROUP'S COVERAGE UNDER A
HEALTH BENEFIT PLAN.

(4) A REINSURING CARRIER MAY REINSURE AN ELIGIBLE EMPLOYEE OR
DEPENDENT WITHIN A PERIOD OF 60 DAYS FOLLOWING THE COMMENCEMENT OF THE
COVERAGE WITH THE SMALL EMPLOYER. A REINSURING CARRIER MAY REINSURE A
NEWLY ELIGIBLE EMPLOYEE OR DEPENDENT WITHIN 60 DAYS OF THE COMMENCEMENT
OF THE ELIGIBLE EMPLOYEE'S OR DEPENDENT'S COVERAGE.

(5) (I) THE POOL MAY NOT REIMBURSE A REINSURING CARRIER WITH
RESPECT TO THE CLAIMS OF A REINSURED EMPLOYEE OR DEPENDENT UNTIL THE
CARRIER HAS INCURRED AN INITIAL LEVEL OF CLAIMS FOR THE EMPLOYEE OR
DEPENDENT OF $5,000 IN A CALENDAR YEAR FOR BENEFITS COVERED BY THE POOL. IN
ADDITION, THE REINSURING CARRIER SHALL BE RESPONSIBLE FOR 10% OF THE NEXT
$50,000 OF INCURRED CLAIMS DURING A CALENDAR YEAR AND THE PROGRAM SHALL

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