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Ch. 31 2000 LAWS OF MARYLAND
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Article - Insurance
Section 14-404 and 14-409
Annotated Code of Maryland
(1997 Volume and 1999 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Insurance
14-401.
(a) In this subtitle the following words have the meanings indicated.
(b) "Dental plan" means a contractual arrangement for dental services.
(c) "Dental plan organization" means a person that provides directly, arranges
for, or administers a dental plan on a prepaid or postpaid individual or group
capitation basis.
(d) "Dental service" means a service included in practicing dentistry as
defined in § 4-101 of the Health Occupations Article.
(e) "Enrollee" means an individual or dependent of the individual who is
enrolled in a dental plan.
(f) "Evidence of coverage" means a contract or certificate that is issued to an
enrollee and that specifies the dental services to which the enrollee is entitled.
14-404.
(a) In accordance with this section, a dental plan organization shall [obtain a
bond or possess surplus for the protection of enrollees] HAVE AND MAINTAIN AT ALL
TIMES A SURPLUS EQUAL TO THE GREATER OF:
(1) $50,000; OR
(2) 2% OF THE ORGANIZATIONS' ANNUAL GROSS PREMIUM INCOME, UP
TO A MAXIMUM OF THE REQUIRED CAPITAL AND SURPLUS OF A STOCK INSURER
UNDER § 4-103 OF THIS ARTICLE.
[(b) (1) The amount of the surplus or bond shall equal the lesser of:
(i) 7% of the gross contract and certificate income of the dental
plan organization for 1 year; or
(ii) $150,000.
(2) The amount of the surplus or bond shall be adjusted:
(i) within 20 days after a change in the gross contract and
certificate income; or
(ii) if necessary, annually on July 1.
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