PARRIS N. GLENDENING, Governor

Ch. 35

(1) SUBJECT TO THE APPROVAL OF THE COMMISSIONER AND AS
PROVIDED UNDER THIS SUBSECTION AND § 15-1209(D) OF THIS SUBTITLE, A CARRIER
MAY IMPOSE REASONABLE MINIMUM PARTICIPATION REQUIREMENTS.

(2) A CARRIER MAY NOT IMPOSE A REQUIREMENT FOR MINIMUM
PARTICIPATION BY THE ELIGIBLE EMPLOYEES OF A SMALL EMPLOYER THAT IS
GREATER THAN 75%.

(3) IN APPLYING A MINIMUM PARTICIPATION REQUIREMENT TO
DETERMINE WHETHER THE APPLICABLE PERCENTAGE OF PARTICIPATION IS MET, A
CARRIER MAY NOT CONSIDER AS ELIGIBLE EMPLOYEES THOSE WHO HAVE
COVERAGE UNDER A PUBLIC OR PRIVATE PLAN OF HEALTH INSURANCE OR
ANOTHER HEALTH BENEFIT ARRANGEMENT, INCLUDING MEDICARE, MEDICAID,
AND CHAMPUS, THAT PROVIDES BENEFITS SIMILAR TO OR EXCEEDING THE
BENEFITS PROVIDED UNDER THE STANDARD PLAN.

(D) ACTUARIAL CERTIFICATIONS.

(1) ON OR BEFORE MARCH 15 OF EACH YEAR, EACH CARRIER SHALL
FILE AN ACTUARIAL CERTIFICATION WITH THE COMMISSIONER.

(2) THE ACTUARIAL CERTIFICATION SHALL BE WRITTEN IN A FORM
THAT THE COMMISSIONER APPROVES, BY A MEMBER OF THE AMERICAN ACADEMY
OF ACTUARIES OR ANOTHER PERSON ACCEPTABLE TO THE COMMISSIONER AND
SHALL STATE THAT THE CARRIER IS IN COMPLIANCE WITH THIS SUBTITLE AND HAS
FOLLOWED THE RATING PRACTICES IMPOSED UNDER § 15-1205 OF THIS SUBTITLE.

(3) THE ACTUARIAL CERTIFICATION SHALL BE BASED ON AN
EXAMINATION THAT INCLUDES A REVIEW OF APPROPRIATE RECORDS AND
ACTUARIAL ASSUMPTIONS AND METHODS USED BY THE CARRIER.

(E) RECORDS.

(1) TO INDICATE COMPLIANCE WITH SUBSECTIONS (B) AND (C)(1) OF
THIS SECTION AND § 15-1205(D) OF THIS SUBTITLE, A CARRIER SHALL MAINTAIN
INFORMATION AND DOCUMENTATION THAT IS SATISFACTORY TO THE
COMMISSIONER.

(2) A CARRIER SHALL:

(I) RETAIN ALL INFORMATION AND DOCUMENTATION REQUIRED
UNDER THIS SUBTITLE AT ITS PRINCIPAL PLACE OF BUSINESS FOR A PERIOD OF 5

YEARS; AND

(II) MAKE THE INFORMATION AND DOCUMENTATION AVAILABLE
TO THE COMMISSIONER ON REQUEST.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 698(b) and (q)(3) and 703(b), (c), (d)(2), (e),
(f), and (g).

In subsection (c)(2) of this section, the former reference to a minimum
participation requirement "for a small employer" is deleted as surplusage.

- 1145 -