PARRIS N. GLENDENING, Governor Ch. 134

698.

(q) (1) "Small employer" means:

(i) Any person, sole proprietor, firm, corporation, partnership, or
association actively engaged in business if:

1. On at least 50 percent of its working days during the
preceding calendar year, employed at least two but no more than 50 eligible employees;
and

2. The majority of the individuals described under item 1 of this
subparagraph are employed within the State; or

(ii) Any self-employed individual who:

1. [Is A. LIVES, WORKS. OR RESIDES IN THIS STATE; AND

B. IS an individual or sole proprietor [who derives] OR IS
ORGANIZED IN ANY OTHER LEGALLY RECOGNIZED MANNER THAT A
SELF-EMPLOYED INDIVIDUAL MAY ORGANIZE SUCH THAT a substantial portion of
the individual's income IS DERIVED from a trade or business through which the
individual or sole proprietor has attempted to earn taxable income and for which the
individual has filed the appropriate Internal Revenue [Form 1040, Schedule C or F,]
FORM OR FORMS AND SCHEDULE for the previous taxable year, a copy of which shall be
filed with the carrier [as proof of employment]; or

2. Is an individual engaged in a licensed profession through a
professional corporation organized in accordance with Title 5, Subtitle 1 of the
Corporations and Associations Article and who received health benefits through a
professional association prior to July 1, 1994.

(9) A CARRIER MAY REQUEST DOCUMENTATION FROM A PERSON TO
VERIFY THAT THE PERSON SATISFIES THE CRITERIA UNDER PARAGRAPH (1)(I),
(2)(I), (4), (5). (6), OR (7) OF THIS SUBSECTION TO BE CONSIDERED A SMALL
EMPLOYER UNDER THIS SUBTITLE.

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Insurance

15-111.

(a) (1) In this section the following words have the meanings indicated.

(2) "Health benefit plan" has the meaning stated in § 15-1201 of this title.

(3) "Payor" means:

(i) a health insurer or nonprofit health service plan that holds a
certificate of authority and provides health insurance policies or contracts in the State
under this article;

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