PARRIS N. GLENDENING, Governor

Ch. 36

Former Art. 48A, § 494A(d)(2)(iii)1, which provided introductory language
for two definitions, is deleted because there is no longer a separate definition
provision in this section.

Defined terms: "Affiliate" § 7-101
"Certificate of authority" § 1-101
"Commissioner" § 1-101
"Control" § 1-101
"Insurance" § 1-101
"Insurer" § 1-101
"Person" § 1-101
"Premium" § 1-101

7-406. PENALTY FOR FAILURE TO FILE PRE-ACQUISITION NOTIFICATION.

A PERSON REQUIRED TO FILE A PRE-ACQUISITION NOTIFICATION UNDER THIS
SUBTITLE OR SUBTITLE 3 OF THIS TITLE THAT FAILS TO FILE THE NOTIFICATION
AND THAT ALSO FAILS TO DEMONSTRATE A GOOD FAITH EFFORT TO COMPLY WITH
THE FILING REQUIREMENT IS SUBJECT TO A PENALTY NOT EXCEEDING $50,000.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 494A(e)(6).

The reference to a "person required to file a pre-acquisition notification
under this subtitle or Subtitle 3 of this title" is substituted for the former
reference to an "insurer or other person" that fails to make a "filing required
by this section" to clarify that this penalty applies to pre-acquisition
notifications required under Subtitles 3 and 4 of this title.

The word "penalty" is substituted for the former reference to a "fine" for
consistency.

Defined term: "Person" § 1-101

SUBTITLE 5. ACQUISITION OF HEALTH SERVICE PLAN.
7-501. ACQUISITION OF CONTROL OF FOREIGN NONPROFIT HEALTH SERVICE PLAN.
(A) SCOPE OF SECTION.
THIS SECTION DOES NOT APPLY TO:

(1)     A TRANSACTION THAT IS PREEMPTED BY FEDERAL LAW; OR

(2)     A TRANSACTION AS TO WHICH:

(I) THE LAWS OF THE JURISDICTION IN WHICH THE NONPROFIT
HEALTH SERVICE PLAN IS DOMICILED AUTHORIZE THE COMMISSIONER OF THAT
JURISDICTION TO INVESTIGATE AND APPROVE AN ACQUISITION OF DIRECT OR
INDIRECT CONTROL OF A NONPROFIT HEALTH SERVICE PLAN BY CONVERSION,
MERGER, CONSOLIDATION, EXERCISE OF A RIGHT TO ACQUIRE, OR OTHERWISE;
AND

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