Section 14-115.1 - Duties of officers; sanctions. - Maryland Statutes

§ 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.]