ROBERT L. EHRLICH, JR., Governor                             Ch. 357

(a) Notwithstanding the provisions of § 14-115(d)(2) and (1) of the Insurance
Article, as enacted by Section 1 of this Act, ten board members representing a
corporation that is organized under the laws of the State and that is subject to the
provisions of § 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act,
shall be removed from the board of directors and replaced on or before December 1,
2003, as provided in subsection (b) of this section.

(b) (1) The ten members removed under subsection (a) of this section shall
be replaced by a nominating committee appointed by the Governor, President of the
Senate of Maryland, and Speaker of the House of Delegates.

(2) The nominating committee shall be appointed on or before June 30,
2003, and shall consist of nine members, of whom:

(i) three, including no more than one health care provider, are
appointed by the Governor;

(ii) three, including no more than one health care provider, are
appointed by the President of the Senate; and

(iii) three, including no more than one health care provider, are
appointed by the Speaker of the House.

(3) (i) The nominating committee shall request from the current board
names of individuals the board recommends for board membership, for the
nominating committee to accept or reject, until the ten members removed under
subsection (a) of this section have been replaced.

(ii) The individuals recommended under subparagraph (i) of this
paragraph shall:

1. include two consumer members; and

2. comply with the provisions of § 14-115(c)(11) of the
Insurance Article, as enacted by Section 1 of this Act.

(iii) Notwithstanding subparagraph (i) of this paragraph, the
nominating committee may consider nominations from any source for membership to
the board.

(c) A member of the nominating committee may not be a candidate for
membership on the board.

(d) This section does not apply to those members who serve on the board of
directors of a corporation that is subject to the provisions of § 14-115(d) of the
Insurance Article, as enacted by Section 1 of this Act, who represent a corporation
that is not organized under the laws of the State.

SECTION 3. AND BE IT FURTHER ENACTED, That:

(a) Two board members representing a corporation that is organized under the
laws of the State and that is subject to the provisions of § 14-115(d) of the Insurance

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