ROBERT L. EHRLICH, JR., Governor                           H.B. 422

19-706.

(ZZ) THE PROVISIONS OF § 15-713 OF THE INSURANCE ARTICLE APPLY TO
HEALTH MAINTENANCE ORGANIZATIONS.

SECTION 3. AND BE IT FURTHER ENACTED, That the Maryland Insurance
Administration shall report to the Governor and, in accordance with § 2-1246 of the
State Government Article, to the General Assembly on or before October 1, 2006 on
the effect of this Act, including fees paid to podiatrists and physicians, health
insurance premiums, podiatrist and physician participation in third party payer
programs, and any recommendations for legislative or regulatory action.

SECTION 3. 2. AND BE IT FURTHER ENACTED, That this Act applies to all
policies and contracts subject to this Act that are delivered, issued for delivery, or
renewed in the State on or after October 1, 2004.

SECTION 4. 3. AND BE IT FURTHER ENACTED, That this Act shall take
effect October 1, 2004.

May 26, 2004

The Honorable Michael E. Busch
Speaker of the House
State House
Annapolis, MD 21401

Dear Mr. Speaker:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed House Bill 422 - Insurance - Surplus Lines Brokers - Policy and Inspection
Fees.

This bill alters specified authority of specified surplus lines brokers, to charge policy
fees on specified policies, procured by licensed producers, to whom the surplus lines
broker pays a commission. It specifies a limit on the policy fee that a specified surplus
lines broker may charge, on a policy issued by an authorized insurer, which was
procured by specified licensed producers, to whom the surplus lines broker pays a
commission.

Senate Bill 238, which was passed by the General Assembly and signed by me on May
11, 2004, accomplishes the same purpose. Therefore, it is not necessary for me to sign
House Bill 422.

Very truly yours,
Robert L. Ehrlich, Jr.
Governor

House Bill No. 422

AN ACT concerning

Insurance - Surplus Lines Brokers - Policy and Inspection Fees

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