WILLIAM DONALD SCHAEFER, Governor                            Ch. 522

Section 240A(b)(1)

Annotated Code of Maryland

(1991 Replacement Volume and 1993 Supplement)

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 490S(b)(2)(iii)
Annotated Code of Maryland
(1991 Replacement Volume and 1993 Supplement)

(As enacted by Chapter______ (H.B. 330) of the Acts of the General Assembly of

1994)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

240A.

(b) (1) (i) Except in the case of life insurance[, health insurance,] and
annuities, when an insurer intends to cancel or not renew a line of business, the insurer
shall file a plan of withdrawal with the Commissioner, at least 180 days before the date of
proposed withdrawal.

(II) IN THE CASE OF HEALTH INSURANCE:

1. WHEN, FOR ALL OF ITS COVERED INSUREDS IN THE
STATE, AN INSURER INTENDS TO CANCEL OR NOT RENEW A HEALTH INSURANCE
PRODUCT THAT IS IDENTIFIED BY THE COMMISSIONER WITH A SPECIFIED FORM
NUMBER AS DEFINED BY THE COMMISSIONER, THE INSURER SHALL FILE A PLAN OF
WITHDRAWAL WITH THE COMMISSIONER AT LEAST 90 DAYS BEFORE THE DATE OF
THE PROPOSED CANCELLATION OR NONRENEWAL; AND

2. WHEN AN INSURER INTENDS TO WITHDRAW
COMPLETELY FROM THE HEALTH INSURANCE MARKET IN THE STATE BY
CANCELING OR NOT RENEWING ALL OF ITS HEALTH INSURANCE PRODUCTS IN THE
STATE, THE INSURER SHALL FILE A PLAN OF WITHDRAWAL WITH THE
COMMISSIONER AT LEAST 180 DAYS BEFORE THE DATE OF THE PROPOSED
WITHDRAWAL.

(ii) (III) The Commissioner may allow an insurer to file a plan of
withdrawal no less than 60 days before the date of proposed withdrawal if the
Commissioner determines that compliance by the insurer with subparagraph (i) of this
paragraph may result in:

1.        The impairment of the insurer;

2.        The loss of or substantial changes in applicable reinsurance;
or

3.        Significant financial losses to the insurer.

- 2477 -