H.B. 2

VETOES

(2) A MEDICAL PROFESSIONAL LIABILITY INSURER SHALL HOLD AND
INVEST THE FUNDS IDENTIFIED WITH THE ACCOUNT ESTABLISHED UNDER
PARAGRAPH (1) OF THIS SUBSECTION IN THE SAME MANNER AS OTHER COMPANY
FUNDS.

(L) THE RATE STABILIZATION ACCOUNT MAY NOT INCUR AN OBLIGATION
UNDER AN AGREEMENT UNTIL THE AMOUNT DEBITED TO AN ACCOUNT
ESTABLISHED UNDER SUBSECTION (K) OF THIS SECTION EXCEEDS THE AMOUNT
CREDITED TO THE ACCOUNT.

(M) (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, FOR EACH
YEAR AN AGREEMENT IS IN EFFECT, A MEDICAL PROFESSIONAL LIABILITY INSURER
THAT ENTERS INTO AN AGREEMENT UNDER SUBSECTION (J) OF THIS SECTION IS
ELIGIBLE TO RECEIVE DISBURSEMENTS FROM THE FUND PROPORTIONATE TO THAT
INSURER'S SHARE OF TOTAL PREMIUMS EARNED BY AUTHORIZED INSURERS IN
CALENDAR 2004.

(2)      IN THE EVENT AN INSURER THAT DID NOT EARN PREMIUMS IN
CALENDAR 2004 ENTERS AN AGREEMENT, THAT INSURER SHALL BE ALLOCATED 5%
OF THE BALANCE IN THE FUND OR SUCH LESSER AMOUNT AS THE COMMISSIONER
SHALL DETERMINE AND THE FUNDS AVAILABLE TO OTHER INSURERS SHALL BE
REDUCED PRO RATA.

(3)      THE CALCULATIONS REQUIRED UNDER THIS SECTION SHALL BE
COMPLETED BEFORE ANY AGREEMENT FOR ANY YEAR MAY BE FORMALLY
EXECUTED.

(N) TO RECEIVE PAYMENT FROM THE RATE STABILIZATION ACCOUNT, A
MEDICAL PROFESSIONAL LIABILITY INSURER SHALL APPLY TO THE COMMISSIONER
ON A FORM AND IN A MANNER APPROVED BY THE COMMISSIONER.

(O) FOR STATUTORY ACCOUNTING PURPOSES, THE COMMISSIONER SHALL
ALLOW A CREDIT FOR REINSURANCE RECOVERABLE, EITHER AS AN ASSET OR A
DEDUCTION FROM LIABILITY, FOR DISBURSEMENTS MADE FROM THE RATE
STABILIZATION ACCOUNT TO A MEDICAL PROFESSIONAL LIABILITY INSURER

(P) (1) DISBURSEMENT FROM THE FUND MAY NOT EXCEED THE REVENUE
FROM THE PREMIUM TAX IMPOSED UNDER § 6-102 OF THIS ARTICLE ON MANAGED
CARE ORGANIZATIONS AND HEALTH MAINTENANCE ORGANIZATIONS, INCLUDING
INTEREST EARNED.

(2) A DISBURSEMENT MAY NOT BE MADE FROM THE FUND TO THE
MEDICAL MUTUAL LIABILITY INSURANCE SOCIETY OF MARYLAND DURING ANY
PERIOD FOR WHICH THE COMMISSIONER HAS DETERMINED, UNDER § 24-212 OF THIS
ARTICLE, THAT THE SURPLUS OF THE SOCIETY IS EXCESSIVE.

(Q) (1) DISBURSEMENTS FROM THE MEDICAL ASSISTANCE PROGRAM
ACCOUNT OF $15,000,000 SHALL BE MADE TO THE MARYLAND MEDICAL ASSISTANCE
PROGRAM TO INCREASE BOTH FEE-FOR-SERVICE PHYSICIAN RATES AND
CAPITATION PAYMENTS TO MANAGED CARE ORGANIZATIONS FOR PROCEDURES
COMMONLY PERFORMED BY:

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