Ch. 396

LAWS OF MARYLAND

(E)   "INSURANCE" MEANS PRIMARY INSURANCE, EXCESS INSURANCE,
REINSURANCE, SURPLUS LINES INSURANCE, AND ANY OTHER ARRANGEMENT
FOR SHIFTING AND DISTRIBUTING RISK WHICH IS DETERMINED TO BE
INSURANCE UNDER THE LAWS OF THIS STATE.

(F)  (1) "LIABILITY" MEANS LEGAL LIABILITY FOR DAMAGES,
INCLUDING COSTS OF DEFENSE, LEGAL COSTS AND FEES, AND OTHER
CLAIMS EXPENSES, BECAUSE OF INJURIES TO OTHER PERSONS, DAMAGE TO
THEIR PROPERTY, OR OTHER DAMAGE OR LOSS TO SUCH OTHER PERSONS,
RESULTING FROM OR ARISING OUT OF:

(I)  ANY BUSINESS, WHETHER PROFIT OR NONPROFIT,
TRADE, PRODUCT, SERVICE, INCLUDING PROFESSIONAL SERVICE,
PREMISES, OR OPERATIONS; OR

(II)  ANY ACTIVITY OF ANY STATE OR LOCAL
GOVERNMENT, OR ANY AGENCY OR POLITICAL SUBDIVISION THEREOF; AND

(2) DOES NOT INCLUDE PERSONAL RISK LIABILITY AND AN
EMPLOYER'S LIABILITY WITH RESPECT TO ITS EMPLOYEES OTHER THAN
LEGAL LIABILITY UNDER THE FEDERAL EMPLOYERS' LIABILITY ACT, 45
U.S.C. § 51, ET. SEQ.

(G)  "PERSONAL RISK LIABILITY" MEANS LIABILITY FOR DAMAGES
BECAUSE OF INJURY TO ANY PERSON, DAMAGE TO PROPERTY, OR OTHER
LOSS OR DAMAGE RESULTING FROM ANY PERSONAL, FAMILIAL, OR
HOUSEHOLD RESPONSIBILITIES OR ACTIVITIES, RATHER THAN FROM
RESPONSIBILITIES OR ACTIVITIES REFERRED TO IN SUBSECTION (F) OF
THIS SECTION.

(H) "PLAN OF OPERATION OR FEASIBILITY STUDY" MEANS AN
ANALYSIS WHICH PRESENTS THE EXPECTED ACTIVITIES AND RESULTS OF A
RISK RETENTION GROUP, INCLUDING, AT A MINIMUM:

(1)  THE COVERAGES, DEDUCTIBLES, COVERAGE LIMITS,
RATES, AND RATING CLASSIFICATION SYSTEMS FOR EACH LINE OF
INSURANCE THE GROUP INTENDS TO OFFER;

(2)  HISTORICAL AND EXPECTED LOSS EXPERIENCE OF THE
PROPOSED MEMBERS AND NATIONAL EXPERIENCE OF SIMILAR EXPOSURES, TO
THE EXTENT THIS EXPERIENCE IS REASONABLY AVAILABLE;

(3)  PRO FORMA FINANCIAL STATEMENTS AND PROJECTIONS;

(4)  APPROPRIATE OPINIONS BY A QUALIFIED, INDEPENDENT
CASUALTY ACTUARY, INCLUDING A DETERMINATION OF MINIMUM PREMIUM OR
PARTICIPATION LEVELS REQUIRED TO COMMENCE OPERATIONS AND, TO
PREVENT A HAZARDOUS FINANCIAL CONDITION;

(5)  IDENTIFICATION OF MANAGEMENT, UNDERWRITING
PROCEDURES, MANAGERIAL OVERSIGHT METHODS, AND INVESTMENT
POLICIES; AND

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