PARRIS N. GLENDENING, Governor Ch. 57

5. Miscellaneous operations requirements for carriers.

(a) Transfers.

(1) A carrier may not arbitrarily transfer a group or individual involuntarily
into or out of a health benefit plan.

(2) A carrier may hot offer to transfer a group or individual into or out of a
health benefit plan unless the offer to transfer is made to all individuals or groups with
similar risk adjustment factors.

(b) Disclosures in solicitation and sales materials.

A carrier shall make a reasonable disclosure in its solicitation and sales materials of:

(1) the provisions that relate to the carrier's right to change premium rates,
including any factors that may affect the changes in premium rates;

(2) the provisions that relate to renewability of policies and contracts;

(3) the provisions that relate to preexisting conditions; and

(4) the provisions of § 7 of this subheading that require an employer to
make dependent coverage available to employees but do not require the employer to
make a contribution to the premium payments for that dependent coverage.

(c) Minimum participation requirements.

Subject to the approval of the Commissioner and as provided under § 7(c) of this
subheading, a carrier may impose reasonable minimum participation requirements.

(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 subheading and has followed the rating practices imposed under § 4 of this
subheading.

(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) of this section and §
4(d) of this subheading, a carrier shall maintain information and documentation that is
satisfactory to the Commissioner.

(2) A carrier shall:

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