PARRIS N. GLENDENING, Governor

Ch. 36

(1)      FOR ALL WORKERS' COMPENSATION CLAIMS UNDER POLICIES
WRITTEN MORE THAN 3 YEARS BEFORE THE DATE OF THE ANNUAL STATEMENT,
THE RESERVES SHALL BE THE PRESENT VALUE AT 4% INTEREST OF THE
DETERMINED AND THE ESTIMATED FUTURE PAYMENTS.

(2)      FOR ALL WORKERS' COMPENSATION CLAIMS UNDER POLICIES
WRITTEN IN THE 3 YEARS IMMEDIATELY PRECEDING THE DATE OF THE ANNUAL
STATEMENT, THE RESERVES SHALL BE 65% OF THE EARNED WORKERS'
COMPENSATION PREMIUMS OF EACH OF THE 3 YEARS, LESS ALL LOSSES AND
EXPENSE PAYMENTS MADE IN CONNECTION WITH CLAIMS UNDER POLICIES
WRITTEN IN THE CORRESPONDING YEARS.

(3)      FOR THE FIRST YEAR OF THE 3-YEAR PERIOD, THE RESERVES MAY
NOT BE LESS THAN THE PRESENT VALUE AT 4% INTEREST OF THE DETERMINED
AND THE ESTIMATED UNPAID WORKERS' COMPENSATION CLAIMS UNDER POLICIES
WRITTEN DURING THAT YEAR.

(E)     HEALTH CARE PROFESSIONAL LIABILITY CLAIMS.

(1)      THE RESERVES FOR ALL HEALTH CARE PROFESSIONAL LIABILITY
CLAIMS:

(I)       MAY NOT BE LESS THAN THE RESERVES REQUIRED BY
SUBSECTION (C) OF THIS SECTION; AND

(II)     IF THE COMMISSIONER APPROVES, MAY BE DISCOUNTED BUT
NOT TO A LEVEL LESS THAN THE PRESENT VALUE AT 4% INTEREST OF THE
DETERMINED OR THE ESTIMATED FUTURE PAYMENTS, OR BOTH.

(2)      IF A HEALTH CARE PROFESSIONAL LIABILITY INSURER RESERVES
ITS HEALTH CARE PROFESSIONAL LIABILITY CLAIMS AT LESS THAN THE FULL
AMOUNT OF THE DETERMINED OR THE ESTIMATED FUTURE PAYMENT OF THOSE
CLAIMS, OR BOTH, THE INSURER SHALL FILE INTERIM STATEMENTS WITH THE
COMMISSIONER UNDER TITLE 4 OF THIS ARTICLE.

(3)      A MEDICAL MALPRACTICE INSURER THAT BENEFITS FROM A
DISCOUNT OF RESERVES UNDER THIS SUBSECTION SHALL REDUCE ITS PREMIUMS
PROPORTIONATELY TO THE AMOUNT OF THE DISCOUNT.

(4)      THE COMMISSIONER SHALL SUBMIT A REPORT TO THE LEGISLATIVE
POLICY COMMITTEE OF THE GENERAL ASSEMBLY ON OR BEFORE OCTOBER 1 OF
EACH YEAR ABOUT THE EFFECT OF A DISCOUNT OF RESERVES ON THE REDUCTION
OF PREMIUMS.

(F)      WAIVER FOR COMBINATION OR MULTIPLE PERIL POLICIES.

THE COMMISSIONER MAY WAIVE THE REQUIREMENTS OF THIS SECTION FOR
COMBINATION OR MULTIPLE PERIL POLICIES IF THE POLICIES:

(1) PLACE THE PREDOMINATING EXPOSURE TO LOSS ON TYPES OF
INSURANCE OTHER THAN LIABILITY INSURANCE; AND

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