Ch. 50

1995 LAWS OF MARYLAND

(d) Upon . approval of application for the certificate of authority, the
Commissioner shall issue the certificate authorizing the Society [or its subsidiaries] to
issue policies of property and casualty insurance that are related to the provision of
health care or to health care facilities used by physicians or other health care providers
where health care is practiced on a regular basis.

552.

(a)     Prior to the expiration of 15 days from June 1, 1975, the State Board of
Physician Quality Assurance shall certify to the State Treasurer a list of all licensed
physicians as shown in the records of the State Board of Physician Quality Assurance as
of June 1, 1975.

(b)     A special one-time tax for the privilege of practicing medicine in Maryland is
levied on licensed physicians listed by the State Treasurer in accordance with subsection

(a)  in the amount of $300 per licensed physician, to be levied, assessed, and collected by
the State Treasurer. The tax does not apply to any licensed physician who submits a
statement, sworn to under penalties of perjury, stating that he has permanently
terminated the active practice of medicine in the State of Maryland or that he is a
physician serving in the employment of the federal government or any agency thereof and
does not otherwise practice medicine in the State of Maryland or to any licensed
physician who submits a statement, sworn to under penalties of perjury, stating that he is
practicing medicine as a volunteer for no remuneration at a clinic not operated for profit
and stating that he is not otherwise engaged in the private practice of medicine in the
State of Maryland or to any resident student physician whose services are not billed
separately. The statement shall be in form established by the State Treasurer.

(c)     The legislature appropriates and dedicates the proceeds of the tax provided by
this subtitle as the initial policyholders' surplus of the Society. After retaining an amount
to pay the cost of collection the Treasurer and Comptroller shall promptly pay over the
proceeds of the tax to the Society.

(d)     The Board of Directors of the Society [or its subsidiaries] may establish
membership fees in amounts as they deem reasonable to be paid by members of the
Society [or its subsidiaries]. Any physician who has paid the tax specified in subsection

(b)  shall be credited the amount of the tax paid against his liability for any membership
fee.

(e)     Upon payment of the specified membership fee a physician or other health
care provider may be insured by the Society [or its subsidiaries] for any and all hazards
customarily insured by the Society [or its subsidiaries], subject to any coverage
limitations specified by the Society [or its subsidiaries] in accordance with policy
limitations, exclusions, conditions, deductibles, and loss sharing requirements.

553.

(a) [A rate Stabilization Reserve Fund is established to be entered as a liability of
the Society and its subsidiaries along with other premium and loss reserves. The Fund
shall be administered and valued annually by three directors of the Society and one
director from each of its subsidiaries, together with the Commissioner of Insurance or his
deputy.] THE SOCIETY MAY COLLECT A RATE STABILIZATION CHARGE FROM EACH

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