Ch. 425                                    1996 LAWS OF MARYLAND

health benefit plans] THE DATA REQUIRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL BE REPORTED IN THE FOLLOWING MANNER:

(I) IN THE CASE OF DATA RELATED TO HEALTH BENEFIT PLANS
ISSUED UNDER SUBTITLE 55 OF THIS ARTICLE BY PRODUCT DELIVERY SYSTEM;

(II) IN THE CASE OF POLICIES ISSUED ON AN INDIVIDUAL BASIS, IN
THE AGGREGATE; AND

(III) IN THE CASE OF ALL OTHER HEALTH BENEFIT PLANS, IN A
MANNER DETERMINED BY THE COMMISSIONER IN ACCORDANCE WITH PARAGRAPH
(1) OF THIS SUBSECTION.

(3) (I) IF THE LOSS RATIO IS LESS THAN 75 PERCENT FOR A HEALTH
BENEFIT PLAN THAT IS ISSUED UNDER SUBTITLE 55 OF THIS ARTICLE, THE
COMMISSIONER MAY REQUIRE THE NONPROFIT HEALTH SERVICE PLAN, INSURER,
OR HEALTH MAINTENANCE ORGANIZATION THAT ISSUES THE HEALTH BENEFIT
PLAN TO FILE NEW RATES.

(II) IN THE CASE OF A HEALTH BENEFIT PLAN ISSUED TO
INDIVIDUALS, IF THE LOSS RATIO IS LESS THAN 60 PERCENT FOR A NONPROFIT
HEALTH SERVICE PLAN OR LESS THAN 50 PERCENT FOR AN INSURER OR HEALTH
MAINTENANCE ORGANIZATION, THE COMMISSIONER MAY REQUIRE THE
NONPROFIT HEALTH SERVICE PLAN, INSURER, OR HEALTH MAINTENANCE
ORGANIZATION TO FILE NEW RATES.

(III) UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH, "HEALTH
BENEFIT PLAN" DOES NOT INCLUDE AN INSURANCE PRODUCT LISTED IN § 698(H)(2)
OF THIS ARTICLE A LOSS RATIO FOR AN INSURANCE PRODUCT LISTED IN § 698(H)(2)
MAY BE ESTABLISHED BY THE COMMISSIONER IN ACCORDANCE WITH GENERALLY
ACCEPTED ACTUARIAL PRINCIPLES APPLICABLE TO THE SPECIFIC PRODUCT.

(IV) UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH, "HEALTH
BENEFIT PLAN" DOES NOT INCLUDE AN INSURANCE PRODUCT WHICH IS SHORT-TERM,
NONRENEWABLE AND WITH NO MORE THAN A 6-MONTH POLICY TERM. A LOSS RATIO
FOR AN INSURANCE PRODUCT UNDER THIS SUBPARAGRAPH MAY BE ESTABLISHED BY
THE COMMISSIONER.

(iii) (IV) (V) The authority of the Commissioner UNDER THIS
PARAGRAPH to require [an insurer] A NONPROFIT HEALTH SERVICE PLAN, INSURER,
OR HEALTH MAINTENANCE ORGANIZATION to file new rates based on [the insurer's]
loss ratio [ under this paragraph] shall be deemed to be in addition to any other authority
of the Commissioner under this article to require that rates not be excessive, inadequate,
or unfairly discriminatory and may not be construed to limit any existing authority of the
Commissioner to determine whether a rate is excessive.

(3) (4) In determining whether to require an insurer to file new rates
under paragraph (2) of this subsection, the Commissioner may consider the amount of
health insurance premiums earned in the State on individual policies in proportion to the
total health insurance premiums earned in the State for the insurer. The insurer shall

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