(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 e 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.
Maryland Legal Code