PARRIS N. GLENDENING, Governor Ch. 35

is revised as a scope provision in subsection (b) of this section.

In subsection (c)(4) of this section, the former phrase "incorporated in this
State under this subtitle" is deleted as unnecessary in light of subsection (b) of
this section.

In subsection (d)(l)(i) of this section, the reference to "podiatric" services is
substituted for the former obsolete reference to "[c]hiropodial" services.

The Insurance Article Review Committee notes, for the consideration of the
General Assembly, that subsection (d)(4)(ii) of this section, which states that
"each consumer member of the board ... may not be considered an agent or
employee of the State for any purpose", may be unnecessary. Consumer
members of the board of directors of a nonprofit health service corporation
are appointed by the board and not by the Governor.

Former Art. 48A, § 361G(a), which defined "health care provider", is revised
as a substantive provision in subsection (g)(2) of this section.

In subsection (g)(3) of this section, the former reference to "rules" of the
Commissioner is deleted in light of the reference to "regulations". See the
General Revisor's Note to this article.

Former Art. 48A, § 361G(e), which delayed the application of the section to
existing foreign nonprofit health service plans until July 1, 1989, is deleted as
obsolete.

Defined terms: "Certificate of authority" § 1-101
"Commissioner" § 1-101
"Person" § 1-101

14-116. UNSOUND OR UNSAFE BUSINESS PRACTICES.

(A) "UNSOUND OR UNSAFE BUSINESS PRACTICE" DEFINED.

(1) IN THIS SECTION, "UNSOUND OR UNSAFE BUSINESS PRACTICE"
MEANS A BUSINESS PRACTICE THAT:

(I) IS DETRIMENTAL TO THE FINANCIAL CONDITION OF A
NONPROFIT HEALTH SERVICE PLAN AND DOES NOT CONFORM TO SOUND INDUSTRY
PRACTICE; OR

(II) IMPAIRS THE ABILITY OF A NONPROFIT HEALTH SERVICE
PLAN TO PAY SUBSCRIBER BENEFITS.

(2) "UNSOUND OR UNSAFE BUSINESS PRACTICE" INCLUDES:

(I) FAILING TO COMPLY WITH THE NOTICE REQUIREMENTS OF §
14-119 OF THIS SUBTITLE;

(II) WILLFULLY HINDERING AN EXAMINATION OF A NONPROFIT
HEALTH SERVICE PLAN OR ITS AFFILIATES OR SUBSIDIARIES; AND

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