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

(ii) hospital administrators; and

(iii) employees of health care professionals or hospitals.

(3) The Commissioner may adopt regulations that limit the
representation of licensed health care professionals, hospital administrators, and
employees of health care professionals or hospitals on a subcommittee of the board in
accordance with paragraph (2) of this subsection.]

14-116.

(a)     (1) In this section, "unsound or unsafe business practice" means a
business practice that:

(i) is detrimental to the financial condition of a nonprofit health
service plan and does not conform to sound industry practice; [or]

(ii) impairs the ability of a nonprofit health service plan to pay
subscriber benefits; OR

(III) VIOLATES § 14-102, § 14-115, OR § 14-139(C) OF THIS SUBTITLE.

(2) "Unsound or unsafe business practice" includes:

(i) failing to comply with the notice requirements of § 14-119 of this
subtitle;

(ii) willfully hindering an examination of a nonprofit health service
plan or its affiliates or subsidiaries; and

(iii) failure of a director to attend at least 65% of the meetings of the
board during a period of 12 consecutive months.

(b)     (1) If the Commissioner believes that an officer or director of a nonprofit
health service plan has engaged in an unsound or unsafe business practice, the
Commissioner shall send a warning to that individual.

(2) The Commissioner shall send a copy of the warning:

(i) by certified mail, return receipt requested, bearing a postmark
from the United States Postal Service, to each director of the nonprofit health service
plan; and

(ii) if the nonprofit health service plan is a corporation incorporated
in a state other than this State, to the insurance commissioner of the state in which the
corporation is incorporated.

(c)      (1) If the nonprofit health service plan is incorporated in this State, the
Commissioner may remove the officer or director if the Commissioner determines after
a hearing that the unsound or unsafe business practice continued after the warning.

(2) A copy of the removal order shall be served on the individual removed
and each director of the nonprofit health service plan.

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