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2007 Vetoed Bills and Messages
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S.B. 714
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:
Article - Health - General
19-706.
(JJJ) THE PROVISIONS OF § 27-210 OF THE INSURANCE ARTICLE APPLY
TO HEALTH MAINTENANCE ORGANIZATIONS.
Article - Insurance
27-210.
(a) Sections 27-208 and 27-209 of this subtitle may not be construed to
include within the definition of discrimination or rebates any of the practices set forth
in this section.
(b) For a contract of life insurance or an annuity contract, it is not
discrimination or a rebate to pay bonuses to policyholders or otherwise abate their
premiums wholly or partly out of the surplus accumulated from nonparticipating
insurance, if the bonuses or abatement of premiums is fair, equitable to, and in the
best interest of policyholders.
(c) . For policies of life insurance or health insurance issued on the industrial
debit, preauthorized check, bank draft, or similar plans, it is not discrimination or a
rebate to make an allowance to policyholders who have continuously for a specified
period made premium payments directly to an office of the insurer or by preauthorized
check, bank draft, or similar plans in an amount that fairly represents the savings in
collection expense.
(d) It is not discrimination or a rebate to readjust the rate of premium for a
group policy based on the loss or expense experience under the policy, at the end of
any policy year, retroactive only for that policy year.
(e) It is not discrimination or a rebate to reduce the premium rate for policies
of large amount, if the reduction does not exceed savings in issuance and
administrative expenses reasonably attributable to policies of large amount as
compared with policies of similar plan issued in smaller amounts.
(f) It is not discrimination or a rebate to issue policies of life insurance or
health insurance or annuity contracts on a salary savings or payroll deduction plan or
other distribution plan at a reduced rate reasonably commensurate with the savings
made by use of the plan.
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