ROBERT L. EHRLICH, JR., Governor                             Ch. 356

(f) Subject to approval by the Insurance Commissioner, the board of directors
of a corporation subject to the provisions of § 14-115(d) of the Insurance Article, as
enacted by Section 1 of this Act, shall develop a plan to stagger the terms of the board
members.

SECTION 5. AND BE IT FURTHER ENACTED, That it is the intent of the
General Assembly that the provisions of Section 1 of this Act shall apply to all
members serving on the board of directors of a nonprofit health service plan that is
subject to the provisions of § 14-115(d) of the Insurance Article, as enacted by Section

1 of this Act.

SECTION 6. AND BE IT FURTHER ENACTED, That the provisions of §

14-139(c) of the Insurance Article, as enacted by Section 1 of this Act, shall apply to
any existing compensation agreement, including an agreement to provide termination
benefits, between a corporation organized under the laws of this State and subject to
§ 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act, and an officer,
director, trustee, or employee of the corporation.

SECTION 7. AND BE IT FURTHER ENACTED, That, for a period of 5 years
after the effective date of this Act:

(1) a person may not file an application for the acquisition of a nonprofit
health service plan subject to the provisions of § 14-115(d) of the Insurance Article, as
enacted by Section 1 of this Act, and a nonprofit health service plan subject to the
provisions of § 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act,
may not be acquired, under Title 6.5 of the State Government Article; and

(2) the Insurance Commissioner may not approve an application for the
acquisition of a nonprofit health service plan subject to the provisions of § 14-115(d)
of the Insurance Article, as enacted by Section 1 of this Act.

SECTION 5. 8. AND BE IT FURTHER ENACTED, That, on or before
February 1, 2004 and annually thereafter, the Insurance Commissioner shall submit
an annual report to the Governor and, subject to § 2-1246 of the State Government
Article, the Senate Finance Committee and the House Health and Government
Operations Committee on the efforts of a corporation subject to § 14-115(d) of the
Insurance Article, as enacted by Section 1 of this Act to comply with the provisions of
this Act.

SECTION 6. 9. AND BE IT FURTHER ENACTED, That this Act is an
emergency measure, is necessary for the immediate preservation of the public health
or safety, has been passed by a yea and nay vote supported by three-fifths of all the
members elected to each of the two Houses of the General Assembly, and shall take
effect from the date it is enacted.

Article - Insurance

14-102.

(A) THE PURPOSE OF THIS SUBTITLE IS:

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