Maryland Code § IN-25-303

Section IN-25-303
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(a) In this section, "service company" means a person that provides services
that are not provided by the administrator, including:
(1) claims adjustment;
(2) safety engineering;
(3) compilation of statistics and the preparation of premium, loss,
and tax reports;
(4) preparation of other required self-insurance reports;
(5) development of members' assessments and fees; and
(6) administration of a claim fund.
(b) The Commissioner shall adopt regulations to carry out this subtitle.

(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;
(4) for each administrator or service company, a bond that the
Commissioner may require in addition to any other required bond; and
(5) a requirement that the governance of the group be under the
control of its members.

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