HARRY HUGHES, Governor

2693

(B)  THE COMMISSIONER SHALL ADOPT REGULATIONS TO CARRY OUT
THE PROVISIONS OF THIS SUBTITLE. 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)  AS TO EACH CLASSIFICATION, A MINIMUM LEVEL OF
CONTRIBUTION TO BE MADE WHICH SHALL BE AT LEAST $250,000 IN
PREMIUMS COLLECTED FROM OR PLEDGED BY MEMBERS OF A GROUP TO A
FUND FROM WHICH COMPENSATION CLAIMS SHALL BE PAID;

(3)  CONDITIONS UNDER WHICH CONTRIBUTIONS BY MEMBERS
OF A SELF-INSURANCE GROUP MAY BE REBATED OR TEMPORARILY
SUSPENDED;

(4)  AS TO EACH CLASSIFICATION, A MINIMUM LEVEL OF
EXCESS INSURANCE COVERAGE THAT SHALL BE OBTAINED BY EACH GROUP;
AND AND THE REQUIREMENT THAT THE MINIMUM LEVELS OF EXCESS
INSURANCE ADOPTED UNDER THIS SECTION MAY BE SATISFIED BY PLACING,
IN A DEPOSITORY DESIGNATED BY THE COMMISSIONER, SECURITIES IN A
FORM AND AMOUNT PRESCRIBED BY THE COMMISSIONER;

(5)  AS TO EACH CLASSIFICATION, A MINIMUM SURETY BOND
OF AT LEAST $100,000 THAT SHALL BE OBTAINED BY EACH GROUP . ; AND

(6) AS TO EACH ADMINISTRATOR OR SERVICE COMPANY, A
MINIMUM BOND THAT MAY BE REQUIRED BY THE COMMISSIONER IN ADDITION
TO ANY OTHER BOND THAT MAY BE REQUIRED.

(C)  A SELF INSURANCE GROUP MUST OBTAIN THE PRIOR APPROVAL
OF THE COMMISSION BEFORE IT MAY FUNCTION. BEFORE A SELF-INSURANCE
GROUP MAY FUNCTION, IT MUST OBTAIN THE COMMISSIONER'S APPROVAL,
INCLUDING APPROVAL OF THE GROUP'S SELF-INSURANCE AGREEMENT.

(D)  EACH SELF-INSURANCE GROUP SHALL HAVE A COMBINED NET
ASSETS WORTH OF AT LEAST $1,000,000.

(E)  (1) THERE SHALL BE A SELF-INSURERS' GUARANTY FUND,
ADMINISTERED BY THE UNINSURED EMPLOYERS' FUND, INTO WHICH EACH
SELF-INSURANCE GROUP SHALL PAY AN ASSESSMENT AT THE SAME LEVEL
ASSESSED AGAINST OTHER WORKMEN'S COMPENSATION INSURERS BY THE
MARYLAND INSURANCE GUARANTY ASSOCIATION UNDER SUBTITLE 33 OF THIS
ARTICLE.

(2)  WHENEVER A GROUP BECOMES INSOLVENT, ANY
OUTSTANDING OBLIGATIONS OF THE GROUP SHALL BE PAID BY THE
SELF-INSURERS' GUARANTY FUND.

(3)  IF THE SELF-INSURERS' GUARANTY FUND BECOMES
INSOLVENT, ANY OUTSTANDING OBLIGATIONS OF AN INSOLVENT
SELF-INSURANCE GROUP SHALL BE A JOINT AND SEVERAL LIABILITY OF
EACH MEMBER OF THE GROUP.