PARRIS N. GLENDENING, Governor

Ch. 36

(4)      IN CONNECTION WITH THE ADMINISTRATION OF A PLAN, COMMITS
FRAUD OR ENGAGES IN ILLEGAL OR DISHONEST ACTIVITIES; OR

(5)      VIOLATES ANY PROVISION OF THIS SUBTITLE OR A REGULATION
ADOPTED UNDER IT.

(B) CONSTRUCTION OF SECTION.

THIS SECTION DOES NOT LIMIT ANY REGULATORY POWER OF THE
COMMISSIONER UNDER TITLE 2 OF THIS ARTICLE.

REVISOR'S NOTE: This section formerly was Art. 48A, § 692(a) and (e).

The only changes are in style.

Defined terms: "Commissioner" § 1-101
"Plan" § 8-301

8-310. ADMINISTRATOR'S DUTIES WITH RESPECT TO PLAN.

AN ADMINISTRATOR SHALL DISCHARGE THE ADMINISTRATOR'S DUTIES WITH
RESPECT TO A PLAN:

(1)      SOLELY IN THE INTEREST OF PROVIDING TO THE PLAN'S
PARTICIPANTS AND BENEFICIARIES THE BENEFITS TO WHICH THEY ARE ENTITLED
UNDER THE PLAN;

(2)      FOR THE EXCLUSIVE PURPOSE OF PROVIDING BENEFITS TO THE
PLAN'S PARTICIPANTS AND BENEFICIARIES AND DEFRAYING REASONABLE
EXPENSES OF ADMINISTERING THE PLAN;

(3)      WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE THAT A
PRUDENT PERSON ACTING IN A SIMILAR CAPACITY AND UNDER SIMILAR
CIRCUMSTANCES WOULD USE TO CONDUCT AN ENTERPRISE OF SIMILAR
CHARACTER AND WITH SIMILAR AIMS;

(4)      IF APPLICABLE, BY DIVERSIFYING THE INVESTMENTS OF THE PLAN
TO MINIMIZE THE RISK OF LARGE LOSSES, UNLESS UNDER THE CIRCUMSTANCES IT
IS CLEARLY PRUDENT NOT TO DO SO; AND

(5)      IN ACCORDANCE WITH THE DOCUMENTS AND INSTRUMENTS
GOVERNING THE PLAN TO THE EXTENT THAT THE DOCUMENTS AND INSTRUMENTS
ARE NOT INCONSISTENT WITH THIS SUBTITLE.

REVISOR'S NOTE: This section formerly was Art. 48A, § 686.

The only changes are in style.

Defined terms: "Administrator" § 8-301
"Person" § 1-101
"Plan" § 8-301

- 1105 -