§2301. Purposes
Any corporation organized under special Act of the Legislature, under Title 13, chapter
81 or as a public benefit corporation under Title 13-B for the following purposes
may be authorized by the superintendent on the terms and conditions provided for in
this chapter, except that when such a corporation was previously organized by special
Act of the Legislature, this chapter does not apply when inconsistent with that Act
as previously amended: [2003, c. 171, §9 (AMD).]
1. Nonprofit hospital service plans.
To establish, maintain and operate nonprofit hospital service plans whereby hospital
care may be provided by hospitals or groups of hospitals with which such a corporation
has a contract for that purpose to those persons or groups of persons who become subscribers
to that plan under a contract that entitles each subscriber to certain hospital care,
and the hospital or hospitals contracting with such a corporation are governed by
this chapter and by the provisions of Title 24-A that are applicable as provided in
this chapter;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
2. Nonprofit medical service plans.
To establish, maintain and operate nonprofit medical service plans whereby medical
or surgical service is provided to those persons or groups of persons who become subscribers
to such a plan under contracts with such a corporation, either in the capacity of
principal or in the capacity of agent of other nonprofit medical service corporations
or insurance companies authorized to do business in this State, and the physician
or physicians contracting with such a corporation are governed by this chapter and
by the provisions of Title 24-A that are applicable as provided in this chapter;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
3. Nonprofit health care plans.
To establish, maintain and operate nonprofit health care plans whereby health care
services not covered under subsections 1 and 2 may be provided, by institutions or
persons licensed for that purpose by the State, when licensure is required, with which
such a corporation has a contract for that purpose, to those persons or groups of
persons who become subscribers to such a plan under a contract that entitles each
subscriber to certain specific health care, and the institution or persons contracting
with such a corporation are governed by this chapter and by the provisions of Title
24-A that are applicable as provided in this chapter;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
3-A. Integrated medical service plans; indemnity health care contracts; health care plan
administration.
A corporation subject to this chapter that maintains a nonprofit hospital service
plan, a nonprofit medical service plan or a nonprofit health care plan in accordance
with subsections 1, 2 or 3 may, in addition:
A. Issue and maintain in force indemnity health care contracts whereby persons or groups
of persons who are contract holders may be indemnified by that corporation for expenses
for hospital care, medical or surgical services or other health care services. An
indemnity contract issued pursuant to the authority established by this section is
subject to all the requirements relating to content and interpretation of such policies
and contracts that apply to policies of the same kind of insurance as set forth in
Title 24-A; [1993, c. 702, Pt. A, §1 (NEW).]
B. Issue and maintain in force employee benefit excess insurance as defined in Title
24-A, section 707, subsection 1, paragraph C-1 with respect to health insurance and
underlying risks that the corporation is authorized to cover under this chapter; [1999, c. 256, Pt. M, §1 (AMD).]
C. Issue and maintain in force hospital, medical service and health care plans and
contracts that include health care benefits for workplace and nonworkplace injury
and illness in accordance with Title 39-A, section 403, subsection 2; [1993, c. 702, Pt. A, §1 (NEW).]
D. Receive or collect charges, contributions or premiums, adjust or settle claims,
and perform related administrative, management, accounting, bookkeeping and advisory
functions on behalf of any plan, fund or program established or maintained by a plan
sponsor, health care services plan, health maintenance organization, health care provider
or insurer, including plans, funds or programs established or maintained to provide
through insurance or alternatives to insurance a type of life, annuity, health or
workers' compensation benefit, except that nothing in this subsection may be interpreted
as authorizing a nonprofit hospital, medical or health care service corporation to
assume insurance risks not related to health care under contracts for life or workers'
compensation insurance or annuities; [1993, c. 702, Pt. A, §1 (NEW).]
E. Establish, maintain, own, merge with, organize and operate a health maintenance
organization directly as a division or line of business of the corporation, or indirectly
as a subsidiary or affiliate of the corporation, pursuant to Title 24-A, chapter 56,
which health maintenance organization has all of the rights and powers and is subject
to all of the duties and responsibilities of a separately organized health maintenance
organization under that chapter. A corporation subject to this chapter that engages
in such activities may not be deemed to be practicing medicine and is exempt from
provisions of law relating to the practice of medicine; and [1993, c. 702, Pt. A, §1 (NEW).]
F. Perform, on behalf of others, clerical, bookkeeping, accounting, statistical, management,
personnel, marketing or similar services related to the provision of health care or
health care financing, or establish, maintain, own and operate entities, independently
or with others, to perform such services; [1993, c. 702, Pt. A, §1 (NEW).]
[
1999, c. 256, Pt. M, §1 (AMD)
.]
3-B. Hospital and medical service business exclusive.
A hospital or medical service corporation may not engage in a business other than
the business of hospital or medical service corporations as set forth in this section
and in business activities reasonably and necessarily related to that business, except
that:
A. A hospital or medical service corporation may also engage in activities reasonably
necessary to the management, supervision, servicing and protection of its lawful investments; [1993, c. 702, Pt. A, §1 (NEW).]
B. A hospital or medical service corporation may own subsidiaries or subsidiaries owning
other subsidiaries that may engage in the activities under Title 24-A, section 1157;
and [1993, c. 702, Pt. A, §1 (NEW).]
C. A hospital or medical service corporation may utilize its facilities to perform
administrative services for a governmental body, unit or agency; [1993, c. 702, Pt. A, §1 (NEW).]
[
1993, c. 702, Pt. A, §1 (NEW)
.]
3-C. Nonprofit purposes.
A nonprofit hospital and medical service organization that is authorized to provide
nonprofit hospital service plans under subsection 1, nonprofit medical service plans
pursuant to subsection 2 or nonprofit health care plans pursuant to subsection 3 is
a charitable and benevolent institution, in accordance with Title 5, section 194-A,
and a public charity and its assets are held for the purpose of fulfilling the charitable
purposes of the organization, which purposes may include, but are not limited to,
the following: providing access to medical care through affordable health insurance
and affordable managed care products for persons of all incomes; identifying and addressing
the State's unmet health care needs, particularly with respect to medically uninsured
and underserved populations; making services and care available through participating
providers; and improving the quality of care for medically uninsured and underserved
populations.
[
2003, c. 171, §10 (AMD)
.]
4. Inadvertent payments.
If direct payment is inadvertently made to a hospital, physician or other provider
of medical services or health care by or on behalf of a subscriber or member, a corporation
may reimburse the subscriber up to the amount payable under the plan to a hospital,
a physician or other provider of medical services or health care;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
5. Principal or agent.
In order to maintain and operate such plans, contracts, facilities and services,
a corporation may act either in the capacity of principal or agent of other nonprofit
hospital service corporations, insurers, health maintenance organizations, health
care services plans, employee benefit plans, health care and employee benefit plan
sponsors and health care providers authorized to do business in this State;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
6. Contracts and agreements.
To contract with any similar corporations in other states for the joint administration
of their business and to enter into reciprocal arrangements for the mutual benefit
of their subscribers;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
7. Administrative services.
A corporation has the right to utilize its organization and facilities, either directly
or through another legal entity owned by it and similar corporations located in other
states, to perform services for the United States or State or the units or agencies
of either; or any public charity involved in health care;
[
2003, c. 171, §11 (AMD)
.]
8. Right to contract.
The State or any county, city, town or other quasi-municipal corporation has the
same right to contract with a corporation subject to this chapter as it has under
Title 24-A, section 4501 with respect to insurers;
[
1993, c. 702, Pt. A, §1 (AMD)
.]
8-A. Managed care plans.
With respect to managed care plans that require subscribers to select primary care
physicians, a corporation subject to this chapter must meet the following requirements:
A. The corporation shall offer to groups of all sizes health benefit plans that meet
the requirements for standardized health plans specified in Bureau of Insurance Rules,
Chapter 750; [1993, c. 702, Pt. A, §1 (NEW).]
B. The managed care plan must provide a spectrum of providers and services that meets
patient demand; [1993, c. 702, Pt. A, §1 (NEW).]
C. The managed care plan must provide to its members reasonable access to health care
services. The Superintendent of Insurance shall adopt rules that consider geographical
and transportation problems in rural areas; and [1993, c. 702, Pt. A, §1 (NEW).]
D. The managed care plan must demonstrate a plan for providing services for rural and
underserved populations and for developing relationships with essential community
providers. The corporation must make an annual report to the Superintendent of Insurance
regarding the plan. [1993, c. 702, Pt. A, §1 (NEW).]
[
1993, c. 702, Pt. A, §1 (NEW)
.]
9. Indemnity health care contracts.
[
1993, c. 702, Pt. A, §1 (RP)
.]
9-A. Investments.
Investments by corporations subject to this chapter are governed by this paragraph.
A. A corporation subject to this chapter may invest funds in the same manner and to
the same extent as domestic mutual insurers under the provisions of Title 24-A, chapter
13-A and shall maintain reserves for possible losses or fluctuation in the value of
investments as contemplated in Title 24-A, section 901-A, subsection 2. Those reserves
must comprehend, at a minimum, an asset valuation reserve and an income maintenance
reserve calculated by methods that are consistent with standards that have been adopted
by the superintendent for management of investment risk by life and health insurers. [2001, c. 72, §1 (AMD).]
B. Any limitation stated in Title 24-A, chapter 13-A on the investment powers of a
mutual domestic insurer expressed in relation to the "surplus" of that insurer must
be applied to a corporation subject to this chapter in relation to that corporation's
subscriber reserves. [1993, c. 702, Pt. A, §1 (NEW).]
C. Notwithstanding the limitation stated in Title 24-A, section 1156, subsection 2,
paragraph D, a hospital or medical service corporation may invest in real property
or interests in real property that is located in the United States, held directly
or evidenced by partnership interests, stock of corporations, trust certificates or
other instruments and acquired:
(1) As an investment for the production of income or to be improved or developed
for that investment purpose; or
(2) For the convenient accommodation of the corporation's business.
After giving effect to any of those investments, the aggregate amount of investments
made under subparagraph (1) may not exceed 20% of the hospital or medical service
corporation's total admitted assets; the aggregate amount of investments made under
subparagraph (2) may not exceed 15% of the corporation's total admitted assets; and
the aggregate amount of investments made under this paragraph may not exceed 25%
of the corporation's total admitted assets. Investments under subparagraph (1) in
any single property, including improvements on that property, may not in the aggregate
exceed 2% of the corporation's total admitted assets. [1993, c. 702, Pt. A, §1 (NEW).]
D. In addition to the investments permitted under paragraph C, a hospital or medical
service corporation that operates and establishes, maintains, merges with or organizes
a health maintenance organization not organized as a separate legal entity may invest
in real estate, including leasehold estates, for the convenient accommodation of the
health maintenance organization's business, including hospitals, medical clinics,
medical professional buildings and any other facility that is to be used by a provider
in the provision of health care or by any other health care provider under contract
with the health maintenance organization, and that facility must be used in the provision
of health care services to members of the health maintenance organization by that
provider.
(1) A parcel of real estate acquired under this subsection may include excess space
for rent to others if it is reasonably anticipated that that excess will be required
for expansion or if the excess is reasonably required in order to have one or more
buildings that function as an economic unit.
(2) Real estate subject to this subsection may be subject to a mortgage.
(3) The admitted value of the investment may not exceed the greater of the hospital
or medical service corporation's subscriber reserve or 20% of the corporation's admitted
assets, and the aggregate investment in real estate held under paragraph C and under
this paragraph may not exceed 40% of the corporation's admitted assets, except with
the approval of the superintendent if the superintendent finds that those percentages
of the corporation's admitted assets are insufficient to provide for the convenient
accommodation of the health maintenance organization's business. Investments in any
single property, including improvements on that property, may not in the aggregate
exceed 5% of the corporation's total admitted assets. [1993, c. 702, Pt. A, §1 (NEW).]
E. Notwithstanding any provisions of this section and Title 24-A, chapter 13-A allowing
other investments, a corporation subject to this chapter shall maintain cash or investment
grade obligations, as defined in Title 24-A, section 1151-A, that at all times have
a fair market value of not less than 100% of the corporation's liability for claims
payable, incurred, but not reported, claims payable, unpaid claims adjustment expenses,
unearned premiums and, as applicable, any statutory, special or additional reserves
provided by the corporation for the benefit of subscribers as of the close of the
corporation's most recent calendar quarter prepared on the basis of statutory accounting
principles. If the corporation's liability for these enumerated items increases more
than 10% prior to the end of the calendar quarter, the corporation must, within 10
days of the determination, reallocate its investments to ensure compliance with this
paragraph. [1999, c. 715, §1 (AMD).]
F. The superintendent may establish risk-based capital standards applicable to corporations
subject to this chapter, their subsidiaries and controlled affiliates that engage
in health care related business activities that the parent corporation conducts. [1993, c. 702, Pt. A, §1 (NEW).]
G. A director, officer or employee of a corporation subject to this chapter who receives,
collects, disburses or invests funds in connection with the activities of that organization
is responsible for those funds in a fiduciary relationship to the corporation. [1993, c. 702, Pt. A, §1 (NEW).]
H. For corporations subject to this subsection, the following terms have the following
meanings.
(1) "Admitted assets" means those assets owned by the corporation, recognized pursuant
to Title 24-A, section 901-A, reduced in amount by any applicable provision of this
Title or Title 24-A. For purposes of applying the investment limitations of Title
24-A, chapter 13-A, the asset value must be that contained in the annual statement
of the corporation as of December 31st of the year next preceding the making of the
investment or contained in an audited financial report, as defined in Title 24-A,
section 221-A, of more current origin prepared on the basis of statutory accounting
principles.
(2) "Subscriber reserves" means those reserves held by the corporation for the protection
of subscribers that are the excess of the corporation's assets over its liabilities
as set forth in the annual statement of the corporation as of December 31st of the
year next preceding the making of the investment or contained in an audited financial
report, as defined in Title 24-A, section 221-A, of more current origin prepared on
the basis of statutory accounting principles; [2001, c. 72, §2 (AMD).]
[
2001, c. 72, §§1, 2 (AMD)
.]
9-B. Conversion to mutual insurer.
[
2003, c. 171, §12 (RP)
.]
9-C. Health maintenance organizations.
A corporation subject to this chapter is not required to maintain separate reserves
or surplus with respect to the operations of a health maintenance organization that
is not a separate legal entity. All assets of the corporation must be available to
pay claims arising from corporate operations, with the exception of assets supporting
reserves set aside in accordance with a plan for the continuation of benefits to health
maintenance organization members under Title 24-A, section 4204, subsection 7 and
assets supporting additional reserves to the extent required by rules adopted by the
superintendent pursuant to Title 24-A, section 901-A. A hospital or medical service
corporation that establishes and maintains a health maintenance organization not organized
as a separate legal entity shall maintain separate accounting for the health maintenance
organization;
[
2001, c. 72, §3 (AMD)
.]
9-D. Conversion to a domestic stock insurer.
Conversion of a nonprofit hospital and medical service organization as defined in
paragraph B, subparagraph (8) to a domestic stock insurer is governed by this subsection.
A. A nonprofit hospital and medical service organization or other entity authorized
by the superintendent or organized pursuant to this chapter may convert to a domestic
stock insurer subject to the provisions of this subsection. [2001, c. 550, Pt. B, §2 (AMD).]
B. As used in this subsection, unless the context otherwise indicates, the following
terms have the following meanings.
(1) "Charitable trust" has the meaning set forth in Title 5, section 194-A, subsection
1, paragraph C.
(2) "Charitable trust plan" means the plan submitted to the Attorney General pursuant
to Title 5, section 194-A, subsection 5.
(3) "Conversion" means the process by which an organization, with the approval of
the superintendent, converts to a domestic stock insurer pursuant to this subsection.
(4) "Conversion plan" means a written plan that sets forth the provisions required
by the superintendent, that is filed with the superintendent pursuant to this subsection,
that sets forth a complete description of the proposed conversion and that contains
sufficient detail to permit the superintendent to make the findings required under
this subsection.
(5) "Converted stock insurer" means the domestic stock insurer resulting from a
conversion pursuant to this subsection.
(6) "Fair market value" means the value of an organization or an affiliate or the
value of the assets of such an entity determined as if the entity had voting stock
outstanding and 100% of its stock were freely transferrable and available for purchase
without restrictions. In determining fair market value, consideration must be given
to value as a going concern, market value, investment or earnings value, net asset
value and a control premium, if any.
(7) "Member" means a member of the organization entitled to vote under the articles
or bylaws of the organization.
(8) "Nonprofit hospital and medical service organization" or "organization" means
a corporation or other entity authorized by the superintendent or organized pursuant
to this chapter for the purpose of providing nonprofit hospital service plans within
the meaning of subsection 1, nonprofit medical service plans within the meaning of
subsection 2 and any organization that provides only nonprofit health care plans within
the meaning of subsection 3.
(10) "Subscriber" means an individual who has subscribed to one or more of the hospital,
medical or health care service plans or contracts offered or issued by the organization
or health insurance affiliate as defined in section 2308-A through an individual or
family policy or group policy. [2003, c. 171, §13 (AMD).]
C. A nonprofit hospital and medical service organization may, without the need for
reincorporation, amend its charter pursuant to this subsection to become a domestic
stock insurer under and pursuant to the terms and conditions of a conversion plan
that complies with this subsection and is approved by the superintendent after an
adjudicatory hearing on the proposed conversion. Notice of the hearing must be given
to the public and the organization's directors or trustees, officers, employees, members
and subscribers, all of whom have the right to appear and be heard at the hearing.
Beginning on the date on which a conversion plan is filed with the superintendent
for approval, the conversion plan must be available for public inspection and copying
at the office of the superintendent, at the principal executive office of the organization
that filed the conversion plan and at other locations the superintendent designates. [1997, c. 344, §4 (NEW).]
D. Concurrent with the filing of the conversion plan with the superintendent, the organization
shall file a charitable trust plan with the Attorney General pursuant to Title 5,
section 194-A and submit a copy to the superintendent. The organization shall file
a copy of the conversion plan with the Attorney General at the time the organization
files the conversion plan with the superintendent. The superintendent shall commence
review of the conversion plan pursuant to this subsection upon receipt by the superintendent
of the Superior Court's approval or approval with modifications of the charitable
trust plan or at such earlier time as the superintendent determines necessary. [1997, c. 344, §4 (NEW).]
E. The superintendent may not issue final approval of a conversion plan unless the
superintendent finds that:
(1) The terms and conditions of the conversion plan are fair and equitable and,
in determining what is fair and equitable, consideration may be given to, but is not
limited to, the factors set forth in paragraph L;
(2) The conversion plan is subject to approval by the vote of not less than 2/3
of the organization's board of directors;
(3) The conversion plan provides for the issuance of capital stock or assets of
the converted stock insurer or a combination of stock and assets, without consideration,
to the charitable trust equal to 100% of the fair market value of the organization;
(5) Immediately after, and giving effect to the terms of, the conversion, the converted
stock insurer would be in safe and sound financial condition and would have paid-in
capital stock and surplus in amounts not less than the minimum paid-in capital stock
and surplus set forth under Title 24-A, section 410 required of a domestic stock insurer
authorized to transact like kinds of insurance;
(7) The conversion plan provides that during the first 3 years after the conversion,
to avoid dilution of the value of the shares issued in the conversion, the converted
stock insurer and its affiliates may not issue shares greater in seniority, including
voting rights or dividends, than the shares issued under the conversion plan. The
superintendent may waive the provisions contained in this subparagraph if the superintendent,
in the superintendent's sole discretion, determines that the charitable trust has
control, as defined in Title 24-A, section 222, of the converted stock insurer;
(8) The conversion plan is consistent with the charitable trust plan and does not
adversely affect the distribution of the organization's value to the charitable trust;
and
(9) The conversion plan complies with all applicable law. [2003, c. 171, §14 (AMD).]
F. The conversion plan must include the proposed articles of incorporation and bylaws
of the converted stock insurer and all references in this subsection to the conversion
plan are deemed to include such instruments. [1997, c. 344, §4 (NEW).]
G.
[2003, c. 171, §15 (RP).]
H. The conversion plan sets forth a comparative premium rate analysis of all the organization's
plans and product offerings, comparing actual premium rates for the 3-year period
before the filing of the conversion plan and projected premium rates for the 3-year
period following the proposed conversion. The rate analysis must address the projected
impact, if any, of the proposed conversion upon the cost to subscribers as well as
the projected impact, if any, of the proposed conversion upon the organization's underwriting
profit, investment income, tax position and loss and claim reserves, including the
effect, if any, of adverse market or risk selection on reserves. [1997, c. 344, §4 (NEW).]
I. The conversion plan must include an appraisal of the fair market value, or range
of values, of the aggregate equity of the converted stock insurer to be outstanding
upon completion of the conversion plan and, if a range of values, the methodology
for fixing a final value coincident with the completion of the transactions provided
for in the conversion plan.
(1) The appraisal must enable determinations of value for purposes of the amount
of cash or other assets that the charitable trust will be entitled to receive, without
consideration, under the provisions of the conversion plan required by paragraph E,
subparagraph (3).
(2) The appraisal required by this paragraph must be prepared by persons independent
of the organization, experienced and expert in the area of corporate appraisal and
acceptable to the superintendent. The appraisal must be in form and content acceptable
to the superintendent and contain a complete and detailed description of the elements
that make up the appraisal, justification for the methodology employed and sufficient
support for the conclusions reached in the appraisal.
(3) To the extent that the appraisal is based on a capitalization of the pro forma
income of the converted stock insurer, the appraisal must indicate the basis for determination
of the income to be derived from any proceeds of the sale of stock and demonstrate
the appropriateness of the earnings-multiple used, including assumptions made regarding
future earnings growth.
(4) To the extent that the appraisal is based on the comparison of the capital stock
of the converted stock insurer with outstanding capital stock of existing stock entities
offering comparable insurance products, the existing stock entities must be reasonably
comparable to the converting stock insurer in terms of such factors as size, market
area, competitive conditions, profit history and expected future earnings.
(5) In those instances when the superintendent determines that the appraisal is
materially deficient or substantially incomplete, the superintendent may deem the
entire conversion plan materially deficient or substantially incomplete and decline
to further process or reject the application for conversion.
(6) The converting organization shall submit to the superintendent information demonstrating
to the satisfaction of the superintendent the independence and expertise of any person
preparing the appraisal or related materials under this paragraph.
(7) An appraiser may not serve as an underwriter or selling agent under the same
conversion plan and an affiliate of an appraiser may not act as an underwriter or
selling agent unless procedures are followed and representations and warranties made
to ensure that an appraiser is separate from the underwriter or selling agent affiliate
and the underwriter or selling agent affiliate does not make recommendations or in
any way have an impact on the appraisal.
(8) An appraiser may not receive any other fee except the fee for services rendered
in connection with the appraisal. [2003, c. 171, §16 (AMD).]
J. A director, officer, agent or employee of the organization or any other person
may not receive any fee, commission or other valuable consideration whatsoever other
than that person's usual and regular salary and compensation for in any manner aiding,
promoting or assisting in a conversion under this section or any related transaction,
except as set forth in the conversion plan and approved by the superintendent. For
the purposes of this paragraph, "usual and regular salary and compensation" does not
include any salary, compensation or other economic benefit that is in any way contingent
on completion of the conversion. This paragraph does not prohibit the payment of
reasonable fees and compensation to attorneys-at-law, accountants and actuaries for
services performed in the independent practice of their professions, even though also
directors of the organization. [1997, c. 344, §4 (NEW).]
K. For the purpose of determining whether a conversion plan meets the requirements
of this subsection and any other relevant provisions of this Title and Title 24-A,
the superintendent may employ staff personnel and outside consultants including, without
limitation, financial advisors, investment bankers, actuaries, attorneys and accountants.
All costs related to the review of a conversion plan, including those costs attributable
to the use of staff personnel, must be borne by the organization making the filing. [1997, c. 344, §4 (NEW).]
L. In making a determination under paragraph E, subparagraph (1) as to whether a conversion
plan is fair and equitable, the superintendent shall consider, among other factors,
the following:
(1) Whether the conversion plan complies with the provisions of and purposes of
this subsection and any rules of the superintendent that may be adopted under this
subsection; and
(2) Whether the conversion plan would adversely affect, in any manner, the services
to be rendered to subscribers. [1997, c. 344, §4 (NEW).]
M. The superintendent may aggregate any transactions that are part of a plan or series
of like transactions to determine whether those transactions constitute a conversion. [1997, c. 344, §4 (NEW).]
N. The superintendent, in the superintendent's sole discretion, may determine when
an application for conversion under this subsection is complete and may request additional
information from the organization as the superintendent determines necessary to review
the application and conversion plan. The superintendent may also conduct an examination
under Title 24-A, section 221 to obtain any information the superintendent determines
necessary in connection with an application for conversion or transaction or series
of transactions that the superintendent determines constitute a conversion under paragraph
M. The failure of the organization to provide the information or cooperate in the
examination, in addition to other applicable penalties, constitutes grounds for denial
of the application for conversion. [1997, c. 344, §4 (NEW).]
O. The Attorney General has the right to intervene as a party in a proceeding before
the superintendent and, if the Attorney General intervenes, has the right to receive
any documents or other information received by the superintendent in connection with
the proceeding. The Attorney General is subject to all confidentiality provisions
that apply to the superintendent. [1997, c. 344, §4 (NEW).]
P. The superintendent may adopt rules, not inconsistent with the provisions of this
subsection, the superintendent determines necessary or desirable and appropriate to
effect the purposes of this subsection. Rules adopted under this subsection are routine
technical rules pursuant to Title 5, chapter 375, subchapter II-A. [1997, c. 344, §4 (NEW).]
[
2003, c. 171, §§13-16 (AMD)
.]
10. Superintendent defined.
As used in this chapter "superintendent" means the Superintendent of Insurance of
this State; and
[
1993, c. 702, Pt. A, §1 (AMD)
.]
11. Separate accounts.
A hospital or medical services corporation that issues indemnity contracts, contracts
pursuant to hospital, medical or health care service plans or integrated medical service
plans shall maintain separate accounting for each of these lines of business.
[
1993, c. 702, Pt. A, §1 (NEW)
.]
SECTION HISTORY
1965, c. 458, §1 (RPR).
1965, c. 513, §44 (AMD).
1967, c. 114, §§1,2 (AMD).
1967, c. 494, §19 (RPR).
1969, c. 132, §§5,6 (AMD).
1969, c. 419, §1 (RPR).
1969, c. 590, §§36-39 (AMD).
1971, c. 444, §1 (RPR).
1973, c. 585, §12 (AMD).
1977, c. 141, (AMD).
1979, c. 377, (AMD).
1993, c. 702, §A1 (AMD).
1997, c. 344, §§2-4 (AMD).
1999, c. 256, §M1 (AMD).
1999, c. 715, §1 (AMD).
2001, c. 72, §§1-3 (AMD).
2001, c. 550, §B2 (AMD).
2003, c. 171, §§9-16 (AMD).
