PARRIS N. GLENDENING, Governor

Ch. 70

(1) Contract with a solvent health maintenance organization or other
appropriate entity to operate the insolvent health maintenance organization, including
the provision of medical care, on a short-term basis;

(g) In the event of the liquidation or rehabilitation of a health maintenance
organization under this section:

(1) Members of the health maintenance organization shall have the same
priority of claims as provided in [Article 48A, § 158A of the Code] § 9-227(C) OF THE
INSURANCE ARTICLE; and

19-710.

(d) (3) (i) For the protection of the health maintenance organization's
members and creditors, the applicant shall deposit and maintain in trust with the State
Treasurer $100,000 in cash or government securities of the type described in [Article
48A, § 110] § 5-701(B) OF THE INSURANCE ARTICLE.

(ii) 1. The deposits shall be accepted and held in trust by the State
Treasurer in accordance with [the provisions of Article 48A, §§ 108 through 118] TITLE
5, SUBTITLE 7 OF THE INSURANCE ARTICLE.

19-711.

(b) (1) A person shall comply with the procedures required by [Article 48A, §§
494 and 494A] TITLE 7, SUBTITLES 3 AND 4 OF THE INSURANCE ARTICLE to the extent
applicable before:

(i) That person may make a tender for or a request or invitation for
tenders of or enter into an agreement to exchange securities for or acquire in the open
market or otherwise, any voting security of a domestic health maintenance organization
or enter into any other such agreement if, after the consummation thereof, that person
would, directly or indirectly, or by conversion or by exercise of any right to acquire be in
control of the domestic health maintenance organization; or

(ii) That person may enter into an agreement to merge or consolidate
with, or otherwise to acquire control of a domestic health maintenance organization.

(2) (i) Approval by the Insurance Commissioner shall be governed by
[Article 48A, § 494(e)] § 7-306 OF THE INSURANCE ARTICLE.

19-711.2.

(a) A person shall comply with the procedures required by [Article 48A, §§ 494
and 494A] TITLE 7, SUBTITLES 3 AND 4 OF THE INSURANCE ARTICLE to the extent
applicable before:

(1) That person may make a tender for or a request or invitation for tenders
of or enter into an agreement to exchange securities for or acquire in the open market or
otherwise, any voting security of a foreign health maintenance organization that is
authorized to do business in this State or enter into any other such agreement if, after the
consummation thereof, that person would, directly or indirectly, or by conversion or by

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