HARRY HUGHES, Governor

2695

(II) UPON A FINDING, AFTER NOTICE AND
OPPORTUNITY FOR A HEARING, THAT ANY PERSON OR GROUP HAS VIOLATED
ANY ORDER ISSUED UNDER THIS PARAGRAPH, THE COMMISSIONER MAY:

1. IMPOSE A MONETARY PENALTY OF NOT MORE
THAN $10,000 FOR EACH VIOLATION OF THE ORDER, NOT TO EXCEED AN
AGGREGATE MONETARY PENALTY OF $100,000; AND

2. REVOKE OR SUSPEND THE GROUP'S
AUTHORITY TO OPERATE.

(3) NOTWITHSTANDING ANY OTHER PROVISION OF THIS
SUBTITLE, AFTER NOTICE AND OPPORTUNITY FOR A HEARING, THE
COMMISSIONER MAY REVOKE OR SUSPEND A GROUP'S AUTHORITY TO OPERATE
IF THE COMMISSIONER DETERMINES THAT THE GROUP;

(I) IS INSOLVENT;

(II) FAILED TO PAY THE SPECIAL FUND
CONTRIBUTION OR REGULATORY FEE IMPOSED ON IT;

(III) FAILED TO COMPLY WITH ANY OF THE
PROVISIONS OF THIS SUBTITLE, ANY REGULATION ADOPTED UNDER THIS
SUBTITLE, OR ANY LAWFUL ORDER OF THE COMMISSIONER WITHIN THE TIME
PRESCRIBED;

(IV) OBTAINED ITS AUTHORITY TO OPERATE BY
FRAUD, INCLUDING MAKING A MATERIAL MISREPRESENTATION IN ITS
APPLICATION FOR AUTHORITY TO OPERATE AS A SELF-INSURANCE GROUP;

(V) MISAPPROPRIATED, CONVERTED, ILLEGALLY
WITHHELD, OR REFUSED TO PAY ON PROPER DEMAND ANY MONEYS THAT HAVE
BEEN ENTRUSTED TO THE GROUP OR ITS ADMINISTRATOR IN ITS FIDUCIARY
CAPACITY AND THAT BELONG TO A MEMBER OF A GROUP, AN EMPLOYEE OF A
MEMBER, OR ANY PERSON ENTITLED TO PAYMENT; OR

(VI) FOR ANY OTHER REASON, SHALL HAVE ITS
AUTHORITY REVOKED OR SUSPENDED TO PROTECT ITS MEMBERS, ITS
INSUREDS, OR THE PUBLIC.

Article 101 - Workmen's Compensation

16.

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

(1)  By insuring and keeping insured the payments of such
compensation in the State Accident Fund, or

(2)  By insuring and keeping insured the payments of such
compensation with any stock corporation or mutual association
authorized to transact the business of workmen's compensation
insurance in this State;