PARRIS N. GLENDENING, Governor Ch. 57

12. Election to become risk-assuming carrier or reinsuring carrier.

(a) Required.

(1) Each carrier shall elect to become either a risk-assuming carrier or
reinsuring carrier.

(2) The notification of election to become a risk-assuming carrier shall
include an appropriate opinion by an independent qualified actuary that the
risk-assuming carrier is able to assume and manage the risk of enrolling individuals or
groups without the protection of the Pool.

(b) Duration of election; new carriers.

(1) The initial election under this section is binding for 3 years.

(2) After the initial 3 years, and every 5 years thereafter, carriers shall again
elect to be either a risk-assuming or reinsuring carrier.

(3) Each subsequent election is binding for 5 years.

(4) The Commissioner may allow a new carrier to make an election under
conditions established by the Commissioner.

(c) Change of election.

(1) The Commissioner may allow a carrier to change its election at any time
for good cause shown.

(2) In determining whether to approve an application by a carrier to change
its election, the Commissioner shall consider:

(i) the applicant's financial condition and the financial condition of
any parent or guaranteeing corporation;

(ii) the applicant's history of assuming and managing risk;

(iii) the applicant's commitment to market fairly to all individuals or
groups in the State or in the applicant's service area;

(iv) the applicant's ability to assume and manage the risk of enrolling
individuals or groups without the protection of the Pool; and

(v) the effect of approval of the application on the financial viability of

the Pool.

(3) While the Commissioner is considering an application under this
subsection, the carrier may request a hearing as provided under Title 11, Subtitle 5 of the
Insurance Article.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 706(a)(1) and (3), (b), (c), and (d) (effective
subject to Ch. 9, §§ 5 and 7, Acts of 1993, as amended by Ch. 258, § 3, Acts of
1994).

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