Ch. 294

1997 LAWS OF MARYLAND

business, including actuarial, loss prevention, safety engineering, data processing,
accounting, claims, appraisal, and collection services;

(8) owning and managing assets that its parent may own and manage;

(9) acting as administrative agent for a governmental unit that performs an
insurance function;

(10) financing insurance premiums;

(11) conducting any other business activity that is reasonably ancillary to an
insurance business; or

(12) owning one or more corporations engaged exclusively in or organized to
engage exclusively in one or more of the business activities specified in this section.

(B) SUBJECT TO THE APPROVAL OF THE COMMISSIONER AND TO THE
PROVISIONS OF THIS TITLE, A DOMESTIC MUTUAL INSURER MAY ACQUIRE OR FORM
A SUBSIDIARY INSURANCE HOLDING COMPANY.

SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act is
an emergency measure, is necessary for the immediate preservation of the public health
and safety, has been passed by a yea and nay vote supported by three-fifths of all the
members elected to each of the two Houses of the General Assembly, and shall take
effect from the date it is enacted.

SECTION 4. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall
take effect October 1, 1997.

Approved April 29, 1997.

CHAPTER 294
(House Bill 1358)

AN ACT concerning

Maryland Health Insurance Portability and Accountability Act

FOR the purpose of establishing certain market reforms in the individual and group
market consistent with the provisions of the federal Health Insurance Portability
and Accountability Act; prohibiting certain preexisting condition provisions under
certain circumstances; requiring certain, carriers that sell certain policies to
individuals to make certain elections under certain circumstances; requiring certain
carriers to submit certain information to the Insurance Commissioner under certain
circumstances and to file certain documents; establishing eligibility for certain
individuals and groups to benefit from certain provisions of this Act; requiring
certain carriers to issue and renew certain health benefit plans under certain
circumstances; requiring certain certification of coverage to be given by certain
carriers to certain persons under certain circumstances; prohibiting certain carriers
under certain circumstances from establishing rules for eligibility for coverage;

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