2694

LAWS OF MARYLAND

Ch. 715

(4) (I) THE COMMISSIONER MAY NOT GRANT THE REQUEST OF
ANY GROUP TO TERMINATE ITS SELF-INSURANCE PLAN UNLESS THE GROUP
HAS INSURED OR REINSURED ALL INCURRED WORKERS' COMPENSATION
OBLIGATIONS WITH AN AUTHORIZED INSURER UNDER AN AGREEMENT FILED
WITH AND APPROVED IN WRITING BY THE COMMISSIONER.

(II) THE OBLIGATIONS UNDER THIS PARAGRAPH SHALL
INCLUDE BOTH KNOWN CLAIMS AND ASSOCIATED EXPENSES, AND CLAIMS
INCURRED BUT NOT REPORTED AND ASSOCIATED EXPENSES.

(III) SUBJECT TO THE APPROVAL OF THE
COMMISSIONER, A GROUP MAY MERGE WITH ANOTHER GROUP ENGAGED IN THE
SAME OR SIMILAR TYPE OF BUSINESS ONLY IF THE RESULTING GROUP
ASSUMES ALL OBLIGATIONS OF THE MERGING GROUPS. THE COMMISSIONER
SHALL HOLD A HEARING ON THE MERGER IF REQUESTED TO DO SO BY ANY
PARTY INCLUDING A MEMBER OF EITHER GROUP.

(F)  THE COMMISSIONER MAY:

(I)(l) REQUIRE ACTUARIAL STUDIES AND AUDITS
TO DETERMINE EACH GROUP'S FINANCIAL SOLVENCY AS OFTEN AS THE
COMMISSIONER CONSIDERS DESIRABLE;

(II)(2) ASSESS EACH SELF-INSURANCE GROUP AN
ANNUAL SUM OF NOT MORE THAN $500 TO BE USED FOR THE ACTUARIAL
STUDIES AND AUDITS TO DETERMINE THE GROUP'S FINANCIAL SOLVENCY;
AND

(III)(3) REQUIRE AN ANNUAL REPORT THAT MAY
INCLUDE PAYROLL AUDIT REPORTS, SUMMARY LOSS REPORTS, AND
QUARTERLY FINANCIAL STATEMENTS.

(G)  A SELF-INSURANCE GROUP IS NOT LIABLE FOR PAYMENTS TO
THE MARYLAND INSURANCE GUARANTY ASSOCIATION.

(H) (1) (I) AFTER NOTICE AND OPPORTUNITY FOR A HEARING, THE
COMMISSIONER MAY IMPOSE A MONETARY PENALTY ON ANY PERSON OR GROUP
FOUND TO BE IN VIOLATION OF ANY PROVISION OF THIS SUBTITLE OR OF
ANY REGULATION ADOPTED UNDER THIS SUBTITLE.

(II) A MONETARY PENALTY ASSESSED UNDER THIS
SUBTITLE MAY NOT EXCEED $1,000 FOR EACH VIOLATION, NOT TO EXCEED
AN AGGREGATE MONETARY PENALTY OF $10,000.

(III) A PERSON WHO IS ASSESSED A MONETARY
PENALTY UNDER THIS SUBTITLE SHALL PAY THE PENALTY TO THE
COMMISSIONER FOR THE USE OF THE STATE.

(2) (I) AFTER WRITTEN NOTICE AND OPPORTUNITY FOR A
HEARING, THE COMMISSIONER MAY ISSUE AN ORDER REQUIRING A PERSON
OR GROUP TO CEASE AND DESIST FROM ENGAGING IN AN ACT OR PRACTICE
FOUND TO BE IN VIOLATION OF ANY PROVISION OF THIS SUBTITLE OR OF
ANY REGULATION ADOPTED UNDER THIS SUBTITLE.