Maryland Code § IN-14-124

Section IN-14-124
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(a) (1) The Commissioner may conduct any investigation or hearing that
the Commissioner considers necessary to enforce this subtitle.
(2) In conducting a hearing or investigation under this section, the
Commissioner has the same powers with respect to nonprofit health service plans as
are granted to the Commissioner under Titles 2 and 4 of this article with respect to
any other activity regulated under this article.
(3) If another state enacts a law or takes a regulatory action that
requires a nonprofit health service plan operating in this State to provide a program
or benefits for the residents of the other state or to distribute or reduce its surplus on
the grounds that the surplus is excessive in whole or in part, the Commissioner may
hold a quasi-legislative hearing or a hearing under Title 2 of this article or conduct
an examination to review and evaluate the impact of the law or regulatory action on
the nonprofit health service plan, including the impact on:
(i) surplus;
(ii) premium rates for policies issued or delivered in this State;
and
(iii) solvency.
(4) Based on the review and evaluation under paragraph (3) of this
subsection, the Commissioner shall determine whether the impact on the nonprofit
health service plan is harmful to the interests of subscribers covered by policies issued
or delivered in this State.
(5) (i) If the Commissioner determines the program or benefits
for the residents of another state or the surplus distribution or reduction have an
impact on the nonprofit health service plan that is harmful to the interests of

subscribers covered by policies issued or delivered in this State, the Commissioner
shall issue an appropriate order to protect the subscribers.
(ii) The order issued under subparagraph (i) of this paragraph
may include:
1. a prohibition on the nonprofit health service plan
subsidizing the program or benefits for the residents of another state through:
A. premiums charged to subscribers under policies
issued or delivered in this State; or
B. use of any surplus earned through policies issued or
delivered in this State;
2. a prohibition on the nonprofit health service plan
distributing or reducing its surplus for the benefit of residents of another state; or
3. any other action the Commissioner considers
necessary to protect the interests of the subscribers covered by policies issued or
delivered in this State.
(6) A nonprofit health service plan may not distribute or reduce its
surplus under a law or regulatory action the impact of which is subject to a hearing
or an examination under paragraph (3) of this subsection, except with the approval
of the Commissioner.
(b) The Commissioner may adopt regulations to carry out this subtitle.
(c) The Commissioner may commence a delinquency proceeding against a
corporation operating under this subtitle for any of the reasons set forth in § 9-211(a)
and (b) of this article.

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