Ch. 11

1996 LAWS OF MARYLAND

(1)      ESTABLISH REASONABLE CLASSIFICATIONS OF PHYSICIANS AND
OTHER HEALTH CARE PROVIDERS, INSURED ACTIVITIES, AND EXPOSURES BASED
ON A GOOD FAITH DETERMINATION OF RELATIVE EXPOSURES AND HAZARDS
AMONG CLASSIFICATIONS;

(2)      VARY THE LIMITS, COVERAGES, EXCLUSIONS, CONDITIONS, AND
LOSS-SHARING PROVISIONS AMONG CLASSIFICATIONS; AND

(3)      ESTABLISH, FOR AN INDIVIDUAL PHYSICIAN OR OTHER HEALTH
CARE PROVIDER WITHIN A CLASSIFICATION, REASONABLE VARIATIONS IN THE
TERMS OF COVERAGE, INCLUDING DEDUCTIBLES AND LOSS-SHARING PROVISIONS,
BASED ON THE INSURED'S PRIOR LOSS EXPERIENCE AND CURRENT PROFESSIONAL
TRAINING AND CAPABILITY.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 554.

Defined terms: "Health care provider" § 24-201
"Physician" § 24-201
"Policy" § 1-101
"Society" § 24-201

24-210. SUBSIDIARIES.

(A)     IN GENERAL.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBTITLE, THE SOCIETY
MAY ESTABLISH, OWN, OR CONTROL A SUBSIDIARY FOR ANY BUSINESS PURPOSE.

(B)     APPLICABILITY OF SUBTITLE.

A SUBSIDIARY THAT IS ESTABLISHED, OWNED, OR CONTROLLED BY THE
SOCIETY IS NOT SUBJECT TO THIS SUBTITLE.

(C)     INDEPENDENT FROM STATE.

(1)      A SUBSIDIARY OF THE SOCIETY IS NOT AND MAY NOT BE DEEMED A
DEPARTMENT, UNIT, AGENCY, OR INSTRUMENTALITY OF THE STATE FOR ANY
PURPOSE.

(2)      THE STATE MAY NOT BE HELD IN ANY WAY LIABLE OR
RESPONSIBLE FOR ANY OF THE DEBTS, CLAIMS, OBLIGATIONS, OR LIABILITIES OF A
SUBSIDIARY OF THE SOCIETY OR THE SOCIETY.

(D)     CAPITALIZING SUBSIDIARIES.

WITHOUT THE PRIOR APPROVAL OF THE BOARD OF DIRECTORS, INCLUDING
AT LEAST 80% OF THE PHYSICIAN MEMBERS OF THE BOARD OF DIRECTORS, THE
SOCIETY MAY NOT DIRECTLY OR INDIRECTLY CAPITALIZE, TRANSFER MONEYS TO,
OR PURCHASE STOCK IN AN INSURANCE SUBSIDIARY BEYOND THE $3,250,000 USED
BY THE SOCIETY BEFORE DECEMBER 31, 1989, TO CAPITALIZE THE INSURANCE
SUBSIDIARIES.

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