ROBERT L. EHRLICH, JR., Governor                               S.B. 4

(II)     IN A MANNER THAT IS REASONABLY BELIEVED TO BE IN THE
BEST INTERESTS OF THE CORPORATION AND ITS CONTROLLED AFFILIATES OR
SUBSIDIARIES THAT OFFER HEALTH BENEFIT PLANS;

(III)   IN A MANNER THAT IS CONSISTENT WITH THE MISSION OF A
NONPROFIT HEALTH SERVICE PLAN AS REQUIRED UNDER § 14-102(C) OF THIS
SUBTITLE; AND

(IV)   WITH THE CARE THAT AN ORDINARILY PRUDENT PERSON IN A
LIKE POSITION WOULD USE UNDER SIMILAR CIRCUMSTANCES.

(2)      EXCEPT FOR THE RECEIPT OF REASONABLE REMUNERATION IN
CONFORMITY WITH § 14-139 OF THIS SUBTITLE, AN OFFICER OF A NONPROFIT
HEALTH SERVICE PLAN MAY NOT USE THE POSITION OF OFFICER FOR PERSONAL OR
FINANCIAL ENRICHMENT TO THE DETRIMENT OF THE NONPROFIT HEALTH SERVICE
PLAN OR THE MISSION OF THE NONPROFIT HEALTH SERVICE PLAN.

(3)      A VIOLATION OF THIS SUBSECTION SHALL BE CONSIDERED AN
UNSOUND OR UNSAFE BUSINESS PRACTICE UNDER § 14-116 OF THIS SUBTITLE.

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;

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

(iii) violates § 14-102, § 14-115, § 14-115.1, or § [14-139(c)]
14-139(A), (B), OR (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) IF THE COMMISSIONER BELIEVES THAT AN OFFICER OR DIRECTOR
OF A NONPROFIT HEALTH SERVICE PLAN HAS FAILED TO TAKE APPROPRIATE

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