§ 25-303
265 words·~1 min read·
/md/insurance/25-303A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§25–303.
(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.
(c)The regulations shall include:
(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.