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H.B. 99
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VETOES
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(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 ORGANIZATIONS1 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.
(c) (1) Notwithstanding subsection (b) of this section, if the Commissioner
determines after a hearing that the surplus or bond provided by the dental plan
organization under subsections (a) and (b) of this section is excessive, the
Commissioner may reduce the amount of the surplus or bond required.
(2) The Commissioner may not reduce the amount of the surplus or bond
unless the Commissioner determines that the dental plan organization is solvent and
has surplus assets of at. least $75,000 in excess of liabilities.
(3) A dental plan organization that is allowed to reduce the amount of its
surplus or bond under this subsection thereafter shall maintain surplus assets of at
least $75,000 in excess of liabilities.
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- 4268 -
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