Ch. 686                                        1994 LAWS OF MARYLAND                                                 

1.       In a corporation that is traded on a national exchange or over
the counter on the national market system; and

2.       That at the time of acquisition, were purchased at the same
price and on the same terms generally available to the public.                                       

(3)] "Board" means the board of directors of a nonprofit health service plan.

[(4)] (3)     "Immediate family member" means a board member's:

(i)     Spouse;

(ii)    Child;                                                                                           

(iii)   Child's spouse;                                                                             

(iv)    Parent;                                                                     

(v)     Spouse's parent;

(vi)    Sibling; or                                                                                     

(vii)   Sibling's spouse.

[(5)](4) "Nonprofit health service plan" means a corporation incorporated

under the laws of this State and operating under a certificate of authority issued by the

Commissioner under this subtitle.                                                                                  

(b) (1) The business and affairs of a nonprofit health service plan shall be

managed under the direction of a board of directors.                                                    

(2)     The board shall carry out its fiduciary duties, whether as individual

directors or as a whole:                                                                                            

(i) In good faith;                                                                           

(ii) In a manner that is reasonably believed to be in the best interests
of the corporation; and                                                                                                 

(iii) With the care that an ordinarily prudent person in a like position
would use under similar circumstances.

(3)     An officer or employee of a nonprofit health service plan or any of its
affiliates or subsidiaries may not be appointed or elected to the board.

[(4) (i) Except as provided under subparagraphs (ii) and (iii) of this
paragraph, a nonprofit health service plan may not contract or commence business with

an entity:

1.       In which a board member, a board member's immediate
family member, or a board member in combination with the board member's immediate
family member owns a beneficial interest; or

2.       From which a board member receives compensation.

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