PARRIS N. GLENDENING, Governor                                S.B. 843

15-1202.

(A)     This subtitle applies only to a health benefit plan that:

(1)     covers eligible employees of small employers in the State; and

(2)     is issued or renewed on or after July 1, 1994, if:

(i) any part of the premium or benefits is paid by or on behalf of the
small employer;

(ii) any eligible employee or dependent is reimbursed, through wage
adjustments or otherwise, by or on behalf of the small employer for any part of the
premium;

(iii) the health benefit plan is treated by the employer or any eligible
employee or dependent as part of a plan or program under the United States Internal
Revenue Code, 26 U.S.C. § 106, § 125, or § 162; or

(iv) the small employer allows eligible employees to pay for the health
benefit plan through payroll deductions.

(B)     A CARRIER IS SUBJECT TO THE REQUIREMENTS OF § 15-1403 OF THIS
TITLE IN CONNECTION WITH HEALTH BENEFIT PLANS ISSUED UNDER THIS

SUBTITLE.

SUBTITLE 13. MARYLAND HEALTH INSURANCE PORTABILITY AND
ACCOUNTABILITY ACT — INDIVIDUAL MARKET REFORMS.

15-1301.

(A)     IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(B)      "ACTUARIAL CERTIFICATION" MEANS A WRITTEN STATEMENT IN A FORM
APPROVED BY THE COMMISSIONER, SIGNED BY A MEMBER OF THE AMERICAN
ACADEMY OF ACTUARIES OR OTHER INDIVIDUAL ACCEPTABLE TO THE
COMMISSIONER THAT A CARRIER IS IN COMPLIANCE WITH THE PROVISIONS OF THIS
SUBTITLE.

(C)     "AFFILIATION PERIOD" MEANS A PERIOD OF TIME BEGINNING ON THE
DATE OF ENROLLMENT AND NOT TO EXCEED 2 MONTHS, OR 3 MONTHS IN THE CASE
OF A LATE ENROLLEE, DURING WHICH A HEALTH MAINTENANCE ORGANIZATION
DOES NOT COLLECT PREMIUM, AND COVERAGE ISSUED DOES NOT BECOME
EFFECTIVE.

(D)     "ASSOCIATION" OR "BONA FIDE ASSOCIATION" MEANS, AN ASSOCIATION
THAT:

(1)      HAS BEEN ACTIVELY IN EXISTENCE FOR AT LEAST 5 YEARS;

(2)      HAS BEEN FORMED AND MAINTAINED IN GOOD FAITH FOR
PURPOSES OTHER THAN OBTAINING INSURANCE AND DOES NOT CONDITION
MEMBERSHIP ON THE PURCHASE OF ASSOCIATION-SPONSORED INSURANCE;

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