Ch. 685

1997 LAWS OF MARYLAND

(3)    That each contract issued, or proposed to be issued, to subscribers to the
plan is in a form approved by the Insurance Commissioner, and that the rates charged, or
proposed to be charged, for each form of such contract are fair and reasonable; and

(4)    That the applicant has a surplus, as defined in § 355A of this subtitle, of
the greater of:

(i) $100,000; or

(ii) An amount equal to that required under § 355A of this subtitle.

356.

(a) No corporation subject to the provisions of this subtitle shall amend its
certificate of incorporation, its bylaws, or the terms and provisions of contracts issued, or
proposed to be issued, to subscribers of the plan, until such proposed amendments have
been first submitted to, and approved by, the Insurance Commissioner[, and payment
made of the fees provided for by § 41 of this article]; nor shall any change be made in the
table of rates charged, or proposed to be charged, to subscribers for any form of contract
issued or to be issued for hospital, medical, chiropodial, chiropractic, pharmaceutical
dental, psychological, or optometric care until such proposed change has been submitted
to, and approved by the Insurance Commissioner. Each amendment shall be on file for a
waiting period of 60 days before it becomes effective. When in the Commissioner's
opinion an amendment is not accompanied by the information needed to support it and
the Commissioner does not have sufficient information to determine whether the filing
meets the requirements of this section, the nonprofit health service plan shall be required
to furnish the needed information and in this event the waiting period shall be suspended
and shall recommence as of the date the information is furnished. Upon written
application by the nonprofit health service plan, the Commissioner may authorize an
amendment which he has reviewed to become effective before the expiration of the
waiting period or any extension thereof or at any later date. A filing shall be deemed
approved unless disapproved by the Commissioner within the waiting period or any
extension thereof. The Commissioner shall disapprove or modify the proposed change or
changes if the table of rates appears by statistical analysis and reasonable assumptions to
be exceessive in relation to benefits, or if the form contains provisions which are unjust,
unfair, inequitable, inadequate, misleading, deceptive, or encourage misrepresentations
of the coverage. In determining whether to disapprove or modify the form or table of
rates, the Commissioner shall give due consideration to past and prospective loss
experience within and outside this State, to underwriting practice and judgment to the
extent appropriate, to a reasonable margin for reserve needs, to past and prospective
expenses both countrywide and those specifically applicable to this State, and to all other
relevant factors within and outside this State.

Upon the adoption of any such amendment or change, following its approval by the
Insurance-Commissioner, such corporation shall file a copy thereof with the Insurance
Commissioner, duly certified to by at least two (2) of the executive officers of such
corporation.

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