PARRIS N. GLENDENING, Governor

Ch. 35

(G) HEARING.

THE COMMISSIONER OR DESIGNEE OF THE COMMISSIONER MAY CONDUCT A
HEARING ON THE PROPOSED CONVERSION OF A CORPORATION SUBJECT TO THIS
SUBTITLE INTO A MUTUAL HEALTH INSURER.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 356AB.

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 (c)(1) of this section, the word "subscribers" is substituted for
the former word "enrollees" for accuracy and consistency with terminology
used elsewhere in this subtitle.

Defined terms: "Agent" § 1-101
"Appointment" § 1-101
"Certificate of authority" § 1-101
"Commissioner" § 1-101
"Health insurer" § 14-130

14-133. INVESTMENT IN OR ACQUISITION OF AFFILIATE OR SUBSIDIARY.

(A) DEFINITIONS.

(1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "AFFILIATE" MEANS A PERSON THAT DIRECTLY OR INDIRECTLY,
THROUGH ONE OR MORE INTERMEDIARIES, CONTROLS, IS CONTROLLED BY, OR IS
UNDER COMMON CONTROL WITH A CORPORATION SUBJECT TO THIS SUBTITLE.

(3) "CONTROL" HAS THE MEANING STATED IN § 7-101(C) OF THIS

ARTICLE.

(4) "SUBSIDIARY" HAS THE MEANING STATED IN § 7-101(F) OF THIS

ARTICLE.

(B) IN GENERAL.

A NONPROFIT HEALTH SERVICE PLAN MAY NOT INVEST IN OR OTHERWISE
ACQUIRE AN AFFILIATE OR SUBSIDIARY UNLESS:

(1) THE AFFILIATE OR SUBSIDIARY IS LICENSED BY THE
COMMISSIONER; OR

(2) (I) THE AFFILIATE OR SUBSIDIARY IS MAJORITY OWNED BY THE
NONPROFIT HEALTH SERVICE PLAN; AND

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