2268

LAWS OF MARYLAND

Ch. 778

FOR DEFENSE OF CLAIMS AS WELL AS COMPENSATION FOR DAMAGES

AND THE COMMISSION MAY, WITHIN THE LIMITS OF APPROPRIATIONS

OF THE FUNDED INSURANCE PROGRAM, ENGAGE NECESSARY CLAIMS

INVESTIGATORS AND ADJUSTERS AND PROVIDE FOR THE DEFENSE AND

SETTLEMENT OF CLAIMS AND PAYMENT OF LAWFUL JUDGMENTS.

(D) THE COMMISSION MAY COOPERATE WITH AND ENTER INTO
AGREEMENTS WITH MONTGOMERY COUNTY OR PRINCE GEORGE'S COUNTY,

OR BOTH, FOR THE PURPOSE OF OBTAINING AND PROVIDING

COMPREHENSIVE INSURANCE COVERAGE IN THE MOST ECONOMICAL

MANNER FOR MAJOR TYPES OF INSURANCE PROTECTION INCLUDING,

BUT NOT LIMITED TO, PUBLIC LIABILITY, GROUP HEALTH, LIFE,

HOSPITALIZATION AND DISABILITY, REAL AND PERSONAL PROPERTY,

AND WORKER'S COMPENSATION. PROVIDED HOWEVER, THAT NOTHING

HEREIN SHALL AUTHORIZE SELF-INSURANCE FOR GROUP HEALTH,

LIFE, AND HOSPITALIZATION INSURANCE.

(A)    THE COMMISSION SHALL ESTABLISH AN ADEQUATE
COMPREHENSIVE INSURANCE PROGRAM:

(1) TO COMPENSATE FOR INJURY TO OR DEATH OF
PERSONS OR DAMAGE TO PROPERTY, RESULTING FROM NEGLIGENCE,
MALPRACTICE OR ANY OTHER TYPE OF CIVIL OR TORTIOUS ACTION OF
THE COMMISSION, OR OF ITS MEMBERS, STAFF, EMPLOYEES, AND

AGENTS ACTING WITHIN THE SCOPE OF THEIR DUTIES, ACTING

WITHOUT MALICE, AND IN THE ABSENCE OF GROSS NEGLIGENCE; AND

(2) TO PROVIDE PROTECTION FOR PROPERTY OF THE
COMMISSION AND FOR OFFICIALS AND EMPLOYEES ACTING WITHIN THE
SCOPE OF THEIR DUTIES, INCLUDING A COMPREHENSIVE WORKERS'

COMPENSATION PROGRAM. THE COMMISSION MAY PURCHASE SUCH

OTHER LIABILITY INSURANCE AS IT DEEMS NECESSARY.

(B)    THE COMMISSION MAY ESTABLISH A PROGRAM OF GROUP

HEALTH, LIFE, HOSPITALIZATION AND DISABILITY INSURANCE BY

THE PURCHASE OF INSURANCE COVERAGE FROM INSURANCE COMPANIES
AUTHORIZED TO DO BUSINESS IN THE STATE OF MARYLAND.

(C)    ALL OF THE INSURANCE PROGRAM REQUIRED UNDER

SUBSECTION (A) AND ONLY THE DISABILITY INSURANCE PORTION

AUTHORIZED UNDER SUBSECTION (B) MAY BE PROVIDED:

(1) BY THE PURCHASE OF INSURANCE COVERAGE FROM
INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS IN THE STATE
OF MARYLAND;

(2) BY A SELF-INSURANCE PROGRAM; OR

(3) BY A COMBINATION OF PURCHASED INSURANCE
COVERAGE AND SELF-INSURANCE. IF A SELF-INSURANCE PROGRAM IS
ESTABLISHED AND FUNDED TO COVER ALL OR PART OF THE INSURANCE
REQUIRED FOR THE COMPREHENSIVE PROGRAM, THE COMMISSION SHALL

ADOPT REGULATIONS FOR THE ADMINISTRATION OF SUCH A PROGRAM,

AND THE FUNDING OF THE PROGRAM SHALL BE A BUDGET ITEM.

WHATEVER INSURANCE PROGRAM IS ESTABLISHED SHALL PROVIDE FOR
DEFENSE OF CLAIMS AS WELL AS COMPENSATION FOR DAMAGES AND

THE COMMISSION MAY, WITHIN THE LIMITS OF APPROPRIATIONS OF

THE INSURANCE PROGRAM, ENGAGE NECESSARY CLAIMS INVESTIGATORS