Ch. 257

2004 LAWS OF MARYLAND

(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
ACTION IN RESPONSE TO A WARNING RECEIVED UNDER PARAGRAPH (1) OF THIS
SUBSECTION, THE COMMISSIONER MAY IMPOSE A CIVIL PENALTY NOT EXCEEDING
$125,000 FOR EACH WARNING.

[(2)] (3) The Commissioner shall send a copy of the warning OR, IF A
CIVIL PENALTY IS IMPOSED UNDER PARAGRAPH (2) OF THIS SUBSECTION, A COPY OF
THE ORDER:

(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.

14-139.

(a) An officer, director, or employee of a corporation operating under this
subtitle may not:

(1)     willfully violate a provision of this article or a regulation adopted
under this article;

(2)     willfully misrepresent or conceal a material fact in a statement,
report, record, or communication [submitted] PROVIDED to the Commissioner;

(3)     willfully misrepresent OR CONCEAL a material fact to the board of
directors;

(4)     misappropriate or fail to account properly for money that belongs to
the corporation, an insurer, insurance producer, subscriber, or certificate holder;

(5)     engage in fraudulent or dishonest practices in connection with the
provision or administration of a health service plan;

(6)     willfully fail to produce records or allow an examination under §
14-125 of this subtitle; or

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