PARRIS N. GLENDENING, Governor

Ch. 35

In subsections (a)(2) and (c)(2)(iv) of this section, the reference to "enrolling
groups under this subtitle" is substituted for the former reference to
"enrolling small employer groups" for clarity.

In subsection (a)(2) of this section, the reference to the "notification of
election to become a risk-assuming carrier" is substituted for the former
reference to the "notification of a risk-assuming carrier" for clarity.

In subsection (b)(1) and (3) of this section, the words "initial" and
"subsequent", respectively, are added to modify "election" to distinguish
between the first election to become a risk-assuming carrier and later ones.

In subsection (c)(3) of this section, the reference to the "Commissioner"
considering an application is added for clarity.

Former Art. 48A, § 706(a)(2), which required an election to be submitted to
the Commissioner by July 1, 1994, is deleted as obsolete.

Defined terms: "Carrier" § 15-1201
"Commissioner" § 1-101
"Pool" § 15-1201
"Reinsuring carrier" § 15-1201
"Risk-assuming carrier" § 15-1201
"Small employer" § 15-1201

15-1216. SMALL EMPLOYER HEALTH REINSURANCE POOL.

(A) ESTABLISHMENT.

THE COMMISSIONER SHALL ESTABLISH THE MARYLAND SMALL EMPLOYER
HEALTH REINSURANCE POOL.

(B) COMMENCEMENT OF OPERATIONS.

THE POOL SHALL BE OPERATIONAL AND MAY REINSURE CLAIMS IN
ACCORDANCE WITH THIS SUBTITLE ON OR AFTER JULY 1, 1994.

(C) MEMBERSHIP OF BOARD OF DIRECTORS.

(1) THE REINSURING CARRIERS SHALL ELECT A BOARD OF DIRECTORS
TO BE COMPOSED OF SEVEN MEMBERS,

(2) THE BOARD SHALL INCLUDE REPRESENTATION FROM CARRIERS
WHOSE PRINCIPAL BUSINESS IN HEALTH INSURANCE IS COMPRISED OF SMALL
EMPLOYERS AND, TO THE EXTENT POSSIBLE, AT LEAST ONE NONPROFIT HEALTH
SERVICE PLAN, AT LEAST ONE COMMERCIAL CARRIER, AND AT LEAST ONE HEALTH
MAINTENANCE ORGANIZATION.

(3) A CARRIER, INCLUDING ITS AFFILIATES, MAY NOT BE
REPRESENTED BY MORE THAN ONE MEMBER ON THE BOARD.

(4) THE TERM OF A MEMBER IS 3 YEARS EXCEPT THAT THE TERMS OF
INITIAL MEMBERS SHALL BE STAGGERED FOR PERIODS OF 1 TO 3 YEARS.

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