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§ 14-115.1. Officers

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 14. Entities that Act as Health Insurers
Subtitle 1. Nonprofit Health Service Plans (Refs & Annos)
Part III. Management, Finances, and Solvency
MD Code, Insurance, § 14-115.1
§ 14-115.1. Officers
Currentness
Officer defined
(a) In this section, “officer” means any officer that a Maryland corporation is required or permitted to have under § 2-412 of the Corporations and Associations Article.
Nature of actions
(b)(1) An officer of a nonprofit health service plan shall act:
(i) in good faith;
(ii) in a manner that is reasonably believed to be in the best interests of the corporation and its controlled affiliates or subsidiaries that offer health benefit plans;
(iii) in a manner that is consistent with the mission of a nonprofit health service plan as required under § 14-102(c) of this subtitle; and
(iv) with the care that an ordinarily prudent person in a like position would use under similar circumstances.
(2) Except for the receipt of reasonable remuneration in conformity with § 14-139 of this subtitle, an officer of a nonprofit health service plan may not use the position of officer for personal or financial enrichment.
(3) A violation of this subsection shall be considered an unsound or unsafe business practice under § 14-116 of this subtitle.

Credits

Added by Acts 2004, c. 257, § 1, eff. June 1, 2004.
MD Code, Insurance, § 14-115.1, MD INSURANCE § 14-115.1
Current through legislation effective through April 25, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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