Ch. 35

1997 LAWS OF MARYLAND

(III) FAILURE OF A DIRECTOR TO ATTEND AT LEAST 65% OF THE
MEETINGS OF THE BOARD DURING A PERIOD OF 12 CONSECUTIVE MONTHS.

(B) WARNING TO OFFICER OR DIRECTOR.

(1) IF THE COMMISSIONER BELIEVES THAT AN OFFICER OR DIRECTOR
OF A NONPROFIT HEALTH SERVICE PLAN HAS ENGAGED IN AN UNSOUND OR
UNSAFE BUSINESS PRACTICE, THE COMMISSIONER SHALL SEND A WARNING TO
THAT INDIVIDUAL.

(2) THE COMMISSIONER SHALL SEND A COPY OF THE WARNING:

(I) BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, BEARING
A POSTMARK FROM THE UNITED STATES POSTAL SERVICE, TO EACH DIRECTOR OF
THE NONPROFIT HEALTH SERVICE PLAN; AND

(II) IF THE NONPROFIT HEALTH SERVICE PLAN IS A CORPORATION
INCORPORATED IN A STATE OTHER THAN THIS STATE, TO THE INSURANCE
COMMISSIONER OF THE STATE IN WHICH THE CORPORATION IS INCORPORATED.

(C) REMOVAL OF OFFICER OR DIRECTOR; HEARING; JUDICIAL REVIEW.

(1) IF THE NONPROFIT HEALTH SERVICE PLAN IS INCORPORATED IN
THIS STATE, THE COMMISSIONER MAY REMOVE THE OFFICER OR DIRECTOR IF THE
COMMISSIONER DETERMINES AFTER A HEARING THAT THE UNSOUND OR UNSAFE
BUSINESS PRACTICE CONTINUED AFTER THE WARNING.

(2) A COPY OF THE REMOVAL ORDER SHALL BE SERVED ON THE
INDIVIDUAL REMOVED AND EACH DIRECTOR OF THE NONPROFIT HEALTH SERVICE
PLAN.

(3) THE INDIVIDUAL REMOVED IS ENTITLED TO A HEARING UNDER
TITLE 2 OF THIS ARTICLE.

(4) ANY PERSON AGGRIEVED BY A FINAL DECISION OF THE
COMMISSIONER UNDER THIS SECTION MAY APPEAL THE DECISION UNDER § 2-215 OF
THIS ARTICLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 360B(a), (b)(1)(i), (2), and (3), and (c).

Former Art. 48A, § 360B(b)(1)(ii), which required that a copy of the warning
be delivered to the Secretary of Licensing and Regulation, is deleted as
unnecessary in light of Ch. 538 of the Acts of 1993, which made the Maryland
Insurance Administration an independent agency of State government.

Defined terms: "Commissioner" § 1-101
"Person" § 1-101
"State" § 1-101

14-117. SURPLUS REQUIREMENTS.
(A) DEFINITIONS.

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