Ch. 527

1996 LAWS OF MARYLAND

(VII) AS TO THE DIRECTORS OF A SELF INSURANCE GROUP, A
REQUIREMENT THAT A MAJORITY OF THE DIRECTORS SHALL BE MEMBERS OF THE
SELF-INSURANCE GROUP.

(VII) A REQUIREMENT THAT THE GOVERNANCE OF THE GROUP BE
UNDER THE CONTROL OF ITS MEMBERS.

(d) Each self-insurance group shall:

(1) [have] HAVE combined net assets of at least $1,000,000; AND

(2) BE FORMED AS A NONSTOCK CORPORATION UNDER TITLE 5,
SUBTITLE 2 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE HAVE A
REQUIREMENT THAT THE GOVERNANCE OF THE GROUP BE UNDER THE CONTROL
OF ITS MEMEBERS.

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Insurance

25-303.

(c) 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)     for each classification:

(i) ' a minimum level of contribution of at least $250,000 in premiums
collected from or pledged by members of a self-insurance group to a fund from which
workers' compensation claims will be paid;

(ii) a minimum level of excess insurance coverage that must be
obtained by each self-insurance group;.

(iii) a requirement that the minimum levels of excess insurance
adopted under this subtitle may be satisfied by placing, in a depository that the
Commissioner designates, securities in a form and amount that the Commissioner
requires; and

(iv) a surety bond of at least $100,000 that must be obtained by each
self-insurance group;

(3)     conditions under which contributions by members of a self-insurance
group may be rebated or temporarily suspended;[and]

(4)     for each administrator or service company, a bond that the
Commissioner may require in addition to any other required bond; AND

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