Ch. 11                                      1996 LAWS OF MARYLAND

(B)     REQUIRED.

THE COMMISSIONER SHALL ADOPT REGULATIONS TO CARRY OUT THIS
SUBTITLE.

(C)     CONTENTS.

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.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 608(e) and 609(b).

In subsection (c)(2)(iv) and (4) of this section, the former references to a
"minimum" surety bond are deleted in light of the requirement in subsection
(c)(2)(iv) of this section that the bond be "at least" a certain amount.

Defined terms: "Administrator" § 25-301
"Commissioner" § 1-101
. "Insurance" § 1-101
"Person" § 1-101
"Premium" § 1-101
"Self-insurance group" § 25-301

25-304. GENERAL REQUIREMENTS.

(A) APPROVAL OF GROUP AND AGREEMENT.

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