penalties against health maintenance organizations under certain
circumstances; providing that certain acts and omissions by an insurer or
nonprofit health service plan are unfair claims settlement practices; providing
for the application of this Act; and generally relating to unfair claims settlement
practices by insurers and nonprofit health service plans and penalties that may
be imposed on health maintenance organizations.

BY repealing and reenacting, without amendments,
Article - Health - General
Section 19-728(a), 19-729, and 19-732
Annotated Code of Maryland

(1996 Replacement Volume and 1998 Supplement)

BY repealing and reenacting, with amendments,
Article — Health - General
Section 19-730, 19-731, and 19-733
Annotated Code of Maryland

(1996 Replacement Volume and 1998 Supplement)

BY repealing and reenacting, without amendments,
Article - Insurance
Section 4-113(d) and 27-305
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 27-304
Annotated Code of Maryland
(1997 Volume and 1998 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Health - General

19-728.

(a) If, as to a matter that is within the jurisdiction of the Department under
this subtitle, the Secretary finds that a health maintenance organization does not
meet the requirements of this subtitle or the rules and regulations adopted under it
and cannot or will not make corrective changes or new arrangements to meet these
requirements, the Secretary may send to the Commissioner a written directive that
sets out the findings of the Secretary and reasons for them and directs the
Commissioner to suspend or revoke the certificate of authority of the health
maintenance organization or to take any other appropriate action that the Secretary
specifies. The Commissioner shall comply with the directive.