(3) LIFE INSURANCE OR AN ANNUITY USED TO FUND A PRE-NEED
CONTRACT AS DEFINED IN § 7-101 OF THE HEALTH OCCUPATIONS ARTICLE OR A
PRENEED BURIAL CONTRACT AS DEFINED IN § 5-701 OF THE BUSINESS REGULATION
ARTICLE.

(b) An insurer may not directly or indirectly, or by an agent or representative
of the insurer, participate in a plan to offer or effect a kind or kinds of life insurance,
health insurance, or annuities in the State as an inducement to, or in combination
with, the purchase by the public of goods, securities, commodities, services, or
subscriptions to periodicals.

27-218.

(a) All burial insurance benefits shall be paid in cash to the beneficiary.

(b) A person engaged in the business of burial insurance may not pay or
contract to pay wholly or partly burial insurance or its benefits to:

(1) an official mortician, funeral director, or undertaker;

(2) a designated mortician, funeral director, undertaker, or funeral
directing or undertaking concern; or

(3) a particular tradesperson or businessperson.

(C) THIS SECTION DOES NOT APPLY TO LIFE INSURANCE OR AN ANNUITY
USED TO FUND A PRE-NEED CONTRACT AS DEFINED IN § 7-101 OF THE HEALTH
OCCUPATIONS ARTICLE OR A PRENEED BURIAL CONTRACT AS DEFINED IN § 5-701 OF
THE BUSINESS REGULATION ARTICLE.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1999.

Approved May 27, 1999.

CHAPTER 579
(Senate Bill 585)

AN ACT concerning

Health Insurance - Managed Behavioral Health Care Organizations -
Explanations and Expense Ratios Quality Measures, Explanations, and

Expense Ratios

FOR the purpose of requiring a carrier that owns or contracts with a managed
behavioral health care organization to distribute a certain explanation to the
members of the carrier; specifying certain information that the explanation
must include; requiring a carrier to file a certain expense ratio; providing for a
certain exception; requiring the Insurance Commissioner to adopt certain
regulations; defining certain terms; establishing a task force to develop