1. (a) In this section, “service company” means a person that provides services that are not provided by the administrator, including:

   1. (1) claims adjustment;
   2. (2) safety engineering;
   3. (3) compilation of statistics and the preparation of premium, loss, and tax reports;
   4. (4) preparation of other required self-insurance reports;
   5. (5) development of members' assessments and fees; and
   6. (6) administration of a claim fund.
2. (b) The Commissioner shall adopt regulations to carry out this subtitle.

3. (c) The regulations shall include:

   1. (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. (2) for each classification:

      1. (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;
      2. (ii) a minimum level of excess insurance coverage that must be obtained by each self-insurance group;
      3. (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
      4. (iv) a surety bond of at least $100,000 that must be obtained by each self-insurance group;
   3. (3) conditions under which contributions by members of a self-insurance group may be rebated or temporarily suspended;
   4. (4) for each administrator or service company, a bond that the Commissioner may require in addition to any other required bond; and
   5. (5) a requirement that the governance of the group be under the control of its members.

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997. Amended by Acts 1996, c. 527, § 2, eff. Oct. 1, 1997.

Formerly Art. 48A, §§ 608, 609.