Ch. 70

1997 LAWS OF MARYLAND

(iv) matches subscribers with a willingness to pay and subscribers with
present medical costs;

(v) coordinates payments directly from one subscriber to another;

(vi) suggests amounts to give that are voluntary among the subscribers,
with no assumption of risk or promise to pay either among the subscribers or between the
subscribers and the organization;

(vii) does not use a compensated agent, representative, or other person
to solicit or enroll subscribers;

(viii) does not make a direct or indirect representation that it is
operating in a financially sound manner or that it has had a successful history of meeting
subscribers' medical costs;

(ix) provides to each subscriber a written monthly statement listing
both the total dollar amount of qualified medical costs submitted for publication and the
amount actually published and assigned for payment;

(x) does not use funds paid by subscribers for medical costs to cover
administrative costs;

(xi) submits a registration statement, including a copy of any
application forms and guidelines, promotional, or informational material distributed by or
on behalf of the arrangement, to the Secretary of State in accordance with the provisions
of Title 6, Subtitle 4 of the Business Regulation Article; and

(xii) provides the following verbatim written disclaimer as a separate
cover sheet for any and all documents distributed by or on behalf of the exempt
arrangement, including applications, guidelines, promotional, or informational material
and all periodic publications:

"Notice

This publication is not issued by an insurance company nor is it offered through an
insurance company. It does not guarantee or promise that your medical bills will be
published or assigned to others for payment. No other subscriber will be compelled to
contribute toward the cost of your medical bills. Therefore, this publication should never
be considered a substitute for an insurance policy. This activity is not regulated by the
State Insurance Administration, and your liabilities are not covered by the Life and
Health Guaranty Fund. Whether or not you receive any payments for medical expenses
and whether or not this entity continues to operate, you are always liable for any unpaid
bills."].

SECTION 11. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

- 1448 -