Ch. 348

1996 LAWS OF MARYLAND

PRODUCTS, EXPENSES, OR ACCOMMODATIONS SHARES IN THE PAYMENT
OBLIGATION FOR SUCH CARE, TREATMENT, SERVICES, PRODUCTS, EXPENSES, OR
ACCOMMODATIONS.

(III) A DEDUCTIBLE, COST-SHARING, OR COINSURANCE UNDER A
POLICY COVERED UNDER THIS PARAGRAPH MAY NOT BE APPLIED WITH RESPECT
TO CARE, TREATMENT, SERVICES, PRODUCTS, OR ACCOMMODATION PROVIDED OR
EXPENSES INCURRED BY AN INSURED DURING THE FIRST 24 HOURS IN WHICH
EMERGENCY TREATMENT HAS BEEN PROVIDED OR UNTIL THE INSURED PATIENT'S
EMERGENCY MEDICAL CONDITION IS STABILIZED, WHICHEVER IS LONGER, OR
UNTIL THE INSURED PATIENT IS TRANSFERRED TO A MANAGED CARE PROVIDER IN
ACCORDANCE WITH APPLICABLE LAW.

(4)     IF ELECTED, THE MANAGED CARE OPTION PROVIDED UNDER TIES
SUBSECTION SHALL APPLY TO ANY PERSON TO WHOM BENEFITS WOULD
OTHERWISE BE APPLICABLE UNDER THIS SECTION.

(5)     (I) AN INSURER MAY NOT REQUIRE AN INSURED TO AGREE TO A
MANAGED CARE OPTION AS A CONDITION OF PROVIDING INSURANCE COVERAGE.

(II) A VIOLATION OF TIBS PARAGRAPH SHALL SUBJECT THE
INSURER TO THE PENALTIES PROVIDED UNDER §§ 12, 55, 55A, AND 215 OF THIS
ARTICLE.

(6)     THE COMMISSIONER SHALL ADOPT REGULATIONS NECESSARY TO
IMPLEMENT THIS SUBSECTION, INCLUDING REGULATIONS PROVIDING FOR A FORM
FOR THE ELECTION OF A MANAGED CARE OPTION.

540.

(a) The benefits described under § 539 of this subtitle shall be payable without
regard to:

(1) The fault or nonfault of the named insured or the recipient in causing or
contributing to the accident; and                                   

(2) [Any] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION,
ANY collateral source of medical, hospital, or wage continuation benefits.

(b) (1) [Subject to paragraph (2) of this subsection, where] WHERE the
insured has coverage for both the benefits described under § 539 of this subtitle and the
collateral benefits, the insurer or insurers [may] SHALL coordinate the policies to
provide for nonduplication of the benefits, subject to appropriate reductions in premiums
for one or both of said coverages approved by the Commissioner.

(2) [(i) The named insured shall have the right to elect or reject the
coordination of policies and nonduplication of benefits.

(ii) If the insured elects to coordinate policies, the insured shall
indicate in writing which policy is to become primary.]

(I) AN INSURER PAYING BENEFITS UNDER § 539 OF THIS SUBTITLE
SHALL BE PRIMARY TO ANY OTHER INSURER PROVIDING COLLATERAL BENEFITS.

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