PARRIS N. GLENDENING, Governor

Ch. 527

BY repealing and reenacting, with amendments,
Article - Insurance
Section 25-303(c) and 25-304
Annotated Code of Maryland
(1995 Volume)

(As enacted by Chapter____(H.B. 11) of the Acts of the General Assembly of

1996)

BY repealing and reenacting, without amendments,
Article - Insurance
Section 25-304
Annotated Code of Maryland
(1995 Volume)
(As enacted by Chapter ____ (H.B. 11) of the Acts of the General Assembly of 1996)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

609.

(b) (1) The Commissioner shall adopt regulations to carry out the provisions of
this subtitle.

(2) The regulations shall include:

(i) 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;

(ii) As to each classification, a minimum level of contribution 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;

(iii) Conditions under which contributions by members of a
self-insurance group may be rebated or temporarily suspended;

(iv) As to each classification, a minimum level of excess insurance
coverage that shall be obtained by each group 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;

(v) As to each classification, a minimum surety bond of at least
$100,000 that shall be obtained by each group; [and]

(vi) 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;
AND

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