HARRY HUGHES, Governor

2547

BY repealing and reenacting with amendments,

Chapter 773 of the Acts of the General Assembly of 1980
Section 3

Preamble

WHEREAS, Chapter 773 of the Acts of the General
Assembly of 1980 permitted groups of employers to associate
and establish joint workmen's compensation self-insurance
coverage; and

WHEREAS, The Act contained a delayed effective date to
enable the Workmen's Compensation Commission and the State
Insurance Commissioner to promulgate certain regulations
concerning self-insurance programs; and

WHEREAS, Additional time is required to soundly

establish this type of coverage, now, therefore,

WHEREAS, The General Assembly has determined that group
self-insurance is practicable at this time only for groups
of counties and municipalities; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
(as enacted by Chapter 773 of the Acts of the General
Assembly of 1980) be repealed, amended, or enacted to read
as follows:

Article 101 - Workmen's Compensation

16.

The employer shall secure compensation to his employees
in one of the following ways:

(3) (a) (i) Any employer who does not, with the
approval of the Commission, voluntarily insure the payment
of the compensation by one of the methods designated in the
preceding paragraphs of this section, must furnish
satisfactory proof to the Commission of his financial
ability to pay the compensation himself, in which case the
Commission may, at any time and from time to time in its
discretion, require the deposit with the Commission of
securities as are accepted by the equity courts of Baltimore
City for the investment of trust funds and in an amount or
amounts to be determined by the Commission, to secure the
liability of the employer to pay the compensation specified
in this article. The Commission may require the employer to
obtain and file with the Commission a policy of insurance
protecting the employer against liability for workmen's
compensation benefits resulting from a catastrophe or