Ch. 456                                    1996 LAWS OF MARYLAND

SUBSECTION, ON JULY 1 OF EACH YEAR, FOR EACH INSURER THAT FAILS TO FILE ITS
RENEWAL APPLICATION AND CONTINUATION FEE ON OR BEFORE JUNE 30, THE
COMMISSIONER SHALL MAY:

(I) ORDER THAT THE INSURER CEASE AND DESIST FROM
ENGAGING FURTHER FROM THE WRITING OF INSURANCE IN THIS STATE IN
ACCORDANCE WITH § 55 OF THIS ARTICLE; OR

(II) ISSUE AN ORDER TO REQUIRE THE INSURER TO SHOW CAUSE
WHY IT SHOULD BE ALLOWED TO CONTINUE TO ENGAGE IN THE INSURANCE
BUSINESS IN THE STATE

8-301.

(f) (1) "Plan" means a fund or other arrangement that is established,
maintained, or contributed to by an employer, employee organization, or both, to the
extent that the fund or arrangement was established or is maintained for the purpose of:

[(1)](I) providing for participants or beneficiaries, any of whom are
residents of the State, through the purchase of insurance or otherwise:

[(i)] 1. medical, surgical, or hospital care or benefits;

[(ii)] 2. benefits in the event of sickness, accident, disability, death,
or unemployment;

[(iii)]   3.   vacation benefits;

[(iv)]   4.   apprenticeship or other training programs;

[(v)]     5.   day care centers;

[(vi)]   6.   scholarship funds;

[(vii)]   7.   prepaid legal services;

[(viii)] 8.   severance pay arrangements; or

[(ix)]   9.   supplemental retirement income payments; or

[(2)] (II) providing retirement income to or allowing the deferral of income
by employees, any of whom are residents of the State, until or after the termination of
covered employment.

(2) "PLAN" DOES NOT INCLUDE A FUND OR ARRANGEMENT
ESTABLISHED OR MAINTAINED SOLELY FOR THE PURPOSE OF COMPLYING WITH
THE WORKER'S COMPENSATION LAWS OF THE STATE

SECTION 4. AND BE IT FURTHER ENACTED. That the Maryland Insurance
Administration shall report to the Senate Finance Committee and the House Economic
Matters Committee by October 1, 1997, in accordance with § 2-1312 of the State Government
Article on the number of insurers that have failed to renew a certificate of authority in a timely
manner and any action that was taken by the Administration against such insurers.

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