Ch. 35

1997 LAWS OF MARYLAND

SUBSECTIONS (C) THROUGH (F) OF THIS SECTION APPLY TO A NONPROFIT
HEALTH SERVICE PLAN THAT IS INCORPORATED UNDER THE LAWS OF THE STATE
AND OPERATES UNDER A CERTIFICATE OF AUTHORITY ISSUED BY THE
COMMISSIONER UNDER THIS SUBTITLE.

(C) IN GENERAL.

(1) THE BUSINESS AND AFFAIRS OF A NONPROFIT HEALTH SERVICE
PLAN SHALL BE MANAGED UNDER THE DIRECTION OF A BOARD OF DIRECTORS.

(2) THE BOARD AND ITS INDIVIDUAL MEMBERS ARE FIDUCIARIES AND
SHALL ACT:

(I) IN GOOD FAITH;

(II) IN A MANNER THAT IS REASONABLY BELIEVED TO BE IN THE
BEST INTERESTS OF THE CORPORATION; AND

(III) WITH THE CARE THAT AN ORDINARILY PRUDENT PERSON IN A
LIKE POSITION WOULD USE UNDER SIMILAR CIRCUMSTANCES.

(3) AN OFFICER OR EMPLOYEE OF A NONPROFIT HEALTH SERVICE
PLAN OR ANY OF ITS AFFILIATES OR SUBSIDIARIES MAY NOT BE APPOINTED OR
ELECTED TO THE BOARD.

(4) A NONPROFIT HEALTH SERVICE PLAN IS SUBJECT TO THE
PROVISIONS OF § 2-419 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE.

(D) CONSUMER MEMBERS OF BOARD.

(1) THIS SUBSECTION DOES NOT APPLY TO A BOARD OF A NONPROFIT
HEALTH SERVICE PLAN THAT ISSUES CONTRACTS FOR ONLY ONE OF THE
FOLLOWING SERVICES:

(I)	PODIATRIC;
(II)	CHIROPRACTIC;
(III)	PHARMACEUTICAL;
(IV)	DENTAL;
(V)	PSYCHOLOGICAL; OR
(VI)	OPTOMETRIC.

(2) THE BOARD SHALL APPOINT TWO ADDITIONAL MEMBERS TO SERVE
AS VOTING CONSUMER MEMBERS.

(3) OF THE TWO CONSUMER MEMBERS, ONE SHALL BE A SUBSCRIBER
AND ONE SHALL BE A CERTIFICATE HOLDER OF THE NONPROFIT HEALTH SERVICE
PLAN.

(4) EACH CONSUMER MEMBER OF THE BOARD:

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