Maryland Statutes
Subtitle 3 - Group Self-Insurance for Workers' Compensation
Section 25-303 - Regulations

(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.