ROBERT L. EHRLICH, JR., Governor                                Ch. 1

Article - Insurance

14-504.

(a)     (1) There is a Maryland Health Insurance Plan Fund.

(2)     The Fund is a special nonlapsing fund that is not subject to § 7-302 of
the State Finance and Procurement Article.

(3)     The Treasurer shall separately hold and the Comptroller shall
account for the Fund.

(4)     The Fund shall be invested and reinvested at the direction of the
Board in a manner that is consistent with the requirements of Title 5, Subtitle 6 of
this article.

(5)     Any investment earnings shall be retained to the credit of the Fund.

(6)     On an annual basis, the Fund shall be subject to an independent
actuarial review setting forth an opinion relating to reserves and related actuarial
items held in support of policies and contracts.

(7)     The Fund shall be used only to provide funding for the purposes
authorized under this subtitle.

(b)     The Fund shall consist of:

(1)     premiums for coverage that the Plan issues;

(2)     EXCEPT AS PROVIDED IN § 14-513(A) OF THIS SUBTITLE, premiums
paid by enrollees of the Senior Prescription Drug Program;

(3)     money collected in accordance with § 19-219 of the Health - General
Article;

(4)     money deposited by a carrier in accordance with § 14-513 of this
subtitle;

(5)     income from investments that the Board makes or authorizes on
behalf of the Fund;

(6)     interest on deposits or investments of money from the Fund; and

(7)     money collected by the Board as a result of legal or other actions
taken by the Board on behalf of the Fund.

(C) (1) THE BOARD MAY ALLOW THE ADMINISTRATOR TO USE PREMIUMS
COLLECTED BY THE ADMINISTRATOR FROM PLAN ENROLLEES TO PAY CLAIMS FOR
PLAN ENROLLEES.

(2) THE ADMINISTRATOR:

(I) SHALL DEPOSIT ALL PREMIUMS FOR PLAN ENROLLEES IN A
SEPARATE ACCOUNT, TITLED IN THE NAME OF THE STATE OF MARYLAND, FOR THE
MARYLAND HEALTH INSURANCE PLAN; AND

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