Maryland Code, INSURANCE 14-115.1
Terms Used In Maryland Code, INSURANCE 14-115.1
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
(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.