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31.08.09.00.htm 31.08.09.00. Title 31 MARYLAND INSURANCE ADMINISTRATION Subtitle 08 PROPERTY AND CASUALTY INSURANCE Chapter 09 Group Self-Insurance for Workers' Compensation Authority: Insurance Article, §2-108, 2-109, 9-102, Title 25, Subtitle 3, and 27-501, Annotated Code of Maryland
31.08.09.01.htm 31.08.09.01. 01 Scope.. This chapter applies only to workers' compensation self-insurance groups (group" or "groups" organized pursuant to Insurance Article, Title 25, Subtitle 3, Annotated Code of Maryland, and not to groups organized pursuant to Labor and Employment Article, §9-402(a) Annotated Code of Maryland.
31.08.09.02.htm 31.08.09.02. 02 Definitions.. A. All terms defined in Insurance Article, Title 25, Subtitle 3, Annotated Code of Maryland, which are used in this chapter have the same meaning as in Insurance Article, Title 25, Subtitle 3, Annotated Code of Maryland.B. Terms Defined.. 1) "Insolvent" or "insolvency" means the inability of a group to pay its outstanding lawful obligations as they mature in the regular course of business as may be shown either by an excess of its required reserves and other l
31.08.09.03.htm 31.08.09.03. 03 Incorporation by Reference.. The Basic Manual for Workers' Compensation and Employees Liability Insurance (2001 Edition) published by the National Council on Compensation Insurance (NCCI) is incorporated by reference.
31.08.09.04.htm 31.08.09.04. 04 Business and Industry Classifications.. A. A group may be formed only by employers who are engaged in the same or a similar type of business or who are members of the same bona fide trade or professional association which has been in existence for not less than 5 years.B. For the first 5 years of its existence or until such time as the self-insured group's experience is such that its data becomes fully credible, a group shall classify employees as set forth in the B
31.08.09.05.htm 31.08.09.05. 05 Minimum Premium Amounts.. A. During a group's first year of operation it shall have an annual premium of at least $500,000, all of which shall have been paid to the group not later than the end of the ninth month of the group's first year of operation.B. For each year after the first year of operation, the annual premium shall be at least $500,000 unless the Commissioner determines that a greater amount is required based on the Commissioner's examination of the group's ann
31.08.09.06.htm 31.08.09.06. 06 Surety Bonds.. A. Each group shall obtain and maintain a surety bond for the protection of group members and their employees in an amount not less than $500,000 unless the Commissioner specifies a different amount.B. The Commissioner may, in the Commissioner's discretion, waive the requirement of §A of this regulation and permit a group to deposit and maintain in trust with the State Treasurer, for the protection of group members, employees and creditors, cash
31.08.09.07.htm 31.08.09.07. 07 Excess Insurance Coverage.. A. Each group shall maintain excess insurance coverage in an amount not less than $1,000,000 per occurrence and not less than $5,000,000 in the aggregate over a commercially available and reasonable attachment point subject to review of the Commissioner.B. A group shall send a copy of its excess insurance policy to the Commissioner in the following circumstances:1) Within 60 days of the renewal or replacement of an existing policy unles
31.08.09.08.htm 31.08.09.08. 08 Application for Certificate of Authority.. A. A person or entity may not act as a workers' compensation self-insurance group except as so authorized by the Commissioner.B. Application for a certificate of authority shall be made to the Commissioner on a form prescribed by him and shall include a $25 nonrefundable filing fee.C. The application form shall be accompanied by the following:. 1) A list of the names of the members of the group, to include each member’s:.
31.08.09.09.htm 31.08.09.09. 09 Commissioner Attorney for Service of Process on Groups.. Every group shall be deemed to have appointed the Commissioner its attorney to receive service of legal process issued against it in this State and this appointment shall be irrevocable, shall bind any successor in interest and shall remain in effect for so long as there is any obligation or liability of the group in this State for workers' compensation benefits.
31.08.09.10.htm 31.08.09.10. 10 Termination of Certificate of Authority.. The Commissioner may not grant the request of any group to terminate its certificate of authority until the group has insured or reinsured all incurred workers' compensation obligations, including both known claims and expenses associated with them, with an authorized insurer under an agreement filed with and approved in writing by the Commissioner.
31.08.09.11.htm 31.08.09.11. 11 Merger of Groups.. A. The Commissioner may approve a merger of groups engaged in the same or a similar type of business only if the resulting group assumes in full all obligations of the merging groups.B. The Commissioner shall hold a hearing on the merger, pursuant to Insurance Article, §2-203 and 2-210―2-214, Annotated Code of Maryland, if requested to do so by a member of either group.
31.08.09.12.htm 31.08.09.12. 12 Fiscal Examinations.. A. The Commissioner may make an examination of the affairs, transactions, records, and assets of any group as often as the Commissioner deems necessary to determine the group's financial solvency and for the protection of the interest of the people of Maryland, but the examination may not be less frequent than once every 5 years.B. Each group shall pay to the Commissioner an annual sum of $500 to be used to defray the cost of examinations.
31.08.09.13.htm 31.08.09.13. 13 Annual Submission of Financial Reports and Other Reports.. A. On or before 90 days following the end of a group's fiscal year, each group shall submit to the Commissioner a fiscal year-end audited financial report, prepared by an independent certified public accountant, in conformity with generally accepted accounting principles, which shall be on a form prescribed by the Commissioner which shall include, but not be limited to:1) Actuarially appropriate reserves for:.
31.08.09.14.htm 31.08.09.14. 14 Rebates and Temporary Suspension of Member Contributions.. A. Any monies for a fund year in excess of the amount necessary to fund all undiscounted losses and loss adjustment expenses for that fund year, actuarially determined by a member of the American Academy of Actuaries or a person who has otherwise demonstrated his or her actuarial competence to the satisfaction of the Commissioner, may be rebated to members of the group.B. A rebate for any fund year shall be paid only t
31.08.09.15.htm 31.08.09.15. 15 Prohibited Unfair Trade Practices.. A. The following actions by a group are prohibited unfair trade practices and are violations of this regulation:1) Excluding an employer from a group for any reason based in whole or in part upon race, color, creed, sex, or blindness of the employer or its employees, or for any arbitrary, capricious, or unfairly discriminatory reason;2) Excluding an employer from a group by the application of standards which are not reasonably relat
31.08.09.9999.htm 31.08.09.9999. Administrative History Effective date: December 26, 1988 (15:26 Md. R. 2982) ―. Chapter recodified from COMAR 09.30.73 to COMAR 31.08.09 effective September 7, 1998 (25:18 Md. R. 1439)Regulation .04 amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809) amended permanently effective February 3, 2003 (30:2 Md. R. 76)Regulation .05A, B amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809) amended permanently effec
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