Section 14-115.1 - Duties of officers; sanctions.
§ 14-115.1. Duties of officers; sanctions.
(a) "Officer" defined.- 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.
(b) In general.-
(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.
[2004, ch. 257.]