Ch. 35

1997 LAWS OF MARYLAND

(2) THE COMMISSIONER MAY INSTITUTE DELINQUENCY PROCEEDINGS
AGAINST THE CORPORATION UNDER TITLE 9, SUBTITLE 2 OF THIS ARTICLE.

(D) EXTENSION OF TIME TO CURE DEFICIENCY.

(1) THE CORPORATION MAY APPLY FOR A SINGLE EXTENSION OF NOT
MORE THAN 60 DAYS TO CURE A DEFICIENCY.

(2) THE COMMISSIONER MAY GRANT THE EXTENSION IF:

(I) THE CORPORATION SHOWS GOOD CAUSE WHY THE
DEFICIENCY WAS NOT CURED IN THE INITIAL TIME PERIOD SPECIFIED BY THE
COMMISSIONER; AND

(II) THE DEFICIENCY EXISTS BECAUSE THE COMMISSIONER
REQUIRED AN INCREASED SURPLUS, DISALLOWED CERTAIN ASSETS, OR REDUCED
THE VALUE OF CERTAIN ASSETS CARRIED IN THE CORPORATION'S ACCOUNTS.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 355B.

Throughout this section, references to "cur[ing]" a deficiency are substituted
for the former references to making "good" and "correcting" a deficiency for
consistency with terminology used elsewhere in this article. See, e.g., § 3-109
of this article.

As to the substitution of the reference to a corporation "authorized" under
this subtitle for the former reference to a corporation "licensed" under this
subtitle in subsection (a) of this section, see the General Revisor's Note to this
subtitle.

In subsection (b) of this section, the reference to a "corporation" is
substituted for the former reference to an "insurer" for consistency with
terminology used in this section and elsewhere in this subtitle.

Defined term: "Commissioner" § 1-101
14-119. NOTIFICATION OF IMPAIRMENT.

(A) IN GENERAL.

IN ADDITION TO THE REQUIREMENTS OF § 9-231 OF THIS ARTICLE, IF A CHIEF
EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, TREASURER, OR DIRECTOR
KNOWS THAT A NONPROFIT HEALTH SERVICE PLAN OR ITS AFFILIATE OR
SUBSIDIARY IS IMPAIRED, THAT INDIVIDUAL IMMEDIATELY SHALL NOTIFY THE
COMMISSIONER OF THE IMPAIRMENT, UNLESS THE COMMISSIONER HAS ALREADY
BEEN NOTIFIED OF THE IMPAIRMENT BY THE CHIEF EXECUTIVE OFFICER, CHIEF
FINANCIAL OFFICER, TREASURER, OR DIRECTOR.

(B) APPLICABILITY OF OTHER PROVISIONS.

THE PROVISIONS OF § 9-231(D), (F), AND (G) OF THIS ARTICLE APPLY TO NOTICE
PROVIDED TO THE COMMISSIONER UNDER THIS SECTION.

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