Ch. 259                                        1994 LAWS OF MARYLAND.

Article 48A - Insurance Code

522.

(1)      This subtitle shall apply to direct life insurance policies, health insurance
policies, annuity contracts, and contracts supplemental to life and health insurance
policies and annuity contracts issued by persons authorized to transact insurance in this
State at any time, including nonprofit health service plans.

(2)     This subtitle shall not apply to:

(a)     Any such policies or contracts, or any part of such policies or contracts,
under which the risk is borne by the policyholder;

(b)     Any such policy or contract or part thereof assumed by the impaired
insurer under a contract of reinsurance, other than reinsurance for which assumption
certificates have been issued; OR

(c)      Any such policy or contract issued by fraternal benefit societies; OR.

(D) EXCEPT AS PROVIDED IN SUBSECTION (3)(B) OF THIS SECTION, A
PURCHASING GROUP OR THE MEMBERS OF A PURCHASING GROUP.

(3)      COVERAGE SHALL BE PROVIDED UNDER THIS SUBTITLE FOR THE
POLICIES OR CONTRACTS SPECIFIED IN SUBSECTION (1) OF THIS SECTION TO ANY
PERSON WHO IS:

(A) (I) AN OWNER OF OR CERTIFICATE HOLDER UNDER A POLICY OR
CONTRACT; AND

(II) 1. A RESIDENT OF THIS STATE; OR

2. NONRESIDENT OF THIS STATE, IF:

A.       THE INSURER THAT ISSUED THE POLICY OR CONTRACT IS
DOMICILED IN THIS STATE;

B.       THE INSURER THAT ISSUED THE POLICY OR. CONTRACT
HAS NEVER HELD A LICENSE OR CERTIFICATE OF AUTHORITY IN THE STATE IN
WHICH THE NONRESIDENT RESIDES;

C.       THE STATE IN WHICH THE NONRESIDENT RESIDES HAS
ASSOCIATIONS OR CORPORATIONS SIMILAR TO THE CORPORATION CREATED
UNDER § 525 OF THIS SUBTITLE; AND

D.       THE NONRESIDENT IS NOT ELIGIBLE FOR COVERAGE BY
THE ASSOCIATIONS OR CORPORATIONS IN THE STATE IN WHICH THE NONRESIDENT
RESIDES;

(B) A MEMBER OF A PURCHASING GROUP WHO IS A MARYLAND
RESIDENT; AND

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