Maryland Code, Insurance § 25-303

Current as of January 01, 2025 | Updated by Findlaw Staff

(a) In this section, “service company” means a person that provides services that are not provided by the administrator, including:

(1) claims adjustment;

(2) safety engineering;

(3) compilation of statistics and the preparation of premium, loss, and tax reports;

(4) preparation of other required self-insurance reports;

(5) development of members' assessments and fees; and

(6) administration of a claim fund.

(b) The Commissioner shall adopt regulations to carry out this subtitle.

(1) classifications of businesses and industries, based on the type of activity conducted by the business or industry, within which employers may join together in self-insurance groups;

(2) for each classification:

(i) a minimum level of contribution of at least $250,000 in premiums collected from or pledged by members of a self-insurance group to a fund from which workers' compensation claims will be paid;

(ii) a minimum level of excess insurance coverage that must be obtained by each self-insurance group;

(iii) a requirement that the minimum levels of excess insurance adopted under this subtitle may be satisfied by placing, in a depository that the Commissioner designates, securities in a form and amount that the Commissioner requires; and

(iv) a surety bond of at least $100,000 that must be obtained by each self-insurance group;

(3) conditions under which contributions by members of a self-insurance group may be rebated or temporarily suspended;

(4) for each administrator or service company, a bond that the Commissioner may require in addition to any other required bond; and

(5) a requirement that the governance of the group be under the control of its members.

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Cite this article: FindLaw.com - Maryland Code, Insurance § 25-303 - last updated January 01, 2025 | https://codes.findlaw.com/md/insurance/md-code-insurance-sect-25-303/

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