PARRIS N. GLENDENING, Governor

Ch. 57

(2) After the initial $5,000 of incurred claims, the reinsuring carrier is
responsible for 10% of the next $50,000 of incurred claims during the calendar year, and
the Pool shall reinsure the remainder.

(3) The liability of a reinsuring carrier under this subsection may not exceed
$10,000 in any 1 calendar year with respect to any individual.

(f) Adjustment of limitations.

(1) The Board annually shall adjust the initial level of claims and the
maximum limit to be retained by the reinsuring carrier to reflect increases in costs and
utilization within the standard market for health benefit plans in the State.

(2) Unless the Board proposes and the Commissioner approves a lower
adjustment factor, the adjustment in paragraph (1) of this subsection may not be less than
the annual change in the medical component of the "Consumer Price Index for all Urban
Consumers" of the Department of Labor, Bureau of Labor Statistics.

(g) Termination of reinsurance.

A reinsuring carrier may terminate reinsurance on a plan anniversary for one or
more of the individual members of a group.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 709(a) (effective subject to Ch. 9, §§ 5 and 7,
Acts of 1993, as amended by Ch. 258, § 3, Acts of 1994).

In subsections (c), (e)(1), (f)(1), and (g) of this section, the defined term
"reinsuring carrier" is substituted for the former references to a "carrier" for
consistency within this section.

In subsection (e)(2) of this section, the reference to the "Pool" is substituted
for the former reference to the "program" because there is no program of
reinsurance, only the "Pool".

Defined terms: "Board" § 1

"Commissioner" IN § 1-101
"Health benefit plan" § 1
"Pool" § 1

"Reinsurance" IN § 1-101
"Reinsuring carrier" § 1
"Standard Plan" § 1

15. Premiums for reinsurance.
(a) In general.

(1) (i) As part of the plan of operation, the Board shall establish a
methodology to determine premium rates to be charged by the Pool for reinsuring groups
and individuals under this section and § 14 of this subheading.

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