Code of Maryland Regulations › Title 14 - INDEPENDENT AGENCIES › Subtitle 09 - WORKERS' COMPENSATION COMMISSION › Chapter 14.09.14 - Governmental Group Self-Insurance › Section 14.09.14.01 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. For the purposes
				of this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Actuarially calculated ultimate loss
				liability" means the sum of open claim reserves plus an estimate of incurred
				but not reported losses on open and closed claims through the cutoff date for
				the estimate in accordance with generally accepted actuarial
				principles.
(2) "Adequate
				consideration" has the meaning set forth in the Employee Retirement Income
				Security Act of 1974 (ERISA),
				29 U.S.C. §
											1108(17)(B).
(3) "Administrator" means a person or entity
				designated by the Board of Trustees for a purpose authorized by this
				regulation.
(4) "Board of Trustees"
				means the elected governing body of a governmental group self-insurance
				fund.
(5) "Elect" means either:
(a) Direct election by the members of the
				governmental group fund;
(b)
				Appointment by the Board of Directors of a governmental entity member
				organization; or
(c) Appointment by
				the Board of Directors of the governmental group or sponsoring
				organization.
(6)
				"Exchange traded fund" or "ETF" means an equity fund or bond fund designed to
				replicate the performance of a major broad market United States, international,
				or global index and publicly traded on an American Stock Exchange.
(7) "Fiduciary" means:
(a) An individual or group of individuals as
				defined in the Employee Retirement Income Security Act of 1974 (ERISA),
				29 U.S.C. §
												1102(21)(A);
(b) A member of the Board of
				Trustees;
(c) A member of an
				investment committee of the Board of Trustees; and
(d) An administrator.
(8) "Fiscal agent" means the entity employed
				by the Board of Trustees to hold the monies of the Fund.
(9) "Fund" means the governmental
				self-insurance group fund established pursuant to Labor and Employment Article,
				§
										9-404, Annotated
				Code of Maryland, and this chapter.
(10) "Party in interest" means:
(a) An administrator;
(b) A fiduciary;
(c) A member of the Fund, any of whose
				employees are covered by the Fund;
(d) A service company;
(e) A trustee;
(f) A fiscal agent;
(g) A spouse, ancestor, lineal descendent, or
				spouse of a lineal descendent of a person set forth in §B(10)(a) " (f) of
				this regulation;
(h) A corporation,
				partnership, trust or estate of which 50 percent is owned directly or
				indirectly by a person set forth in §B(9)(a) " (f) of this
				regulation;
(i) An employee,
				officer, director or 10 percent or more shareholder of an entity or person set
				forth in §B(10)(a) " (f) of this regulation; and
(j) A 10 percent or more partner or joint
				venturer of an entity or person set forth in §B(10)(a) " (f) of this
				regulation.
(11) "SEC"
				means the United States Securities and Exchange Commission.
(12) "Service company" means an organization,
				company, or person hired to perform a function of the Fund's day-to-day
				operations including, but not limited to:
(a)
				Adjusting claims;
(b) Performing
				safety engineering;
(c) Compiling
				statistics and preparing premium, loss, and tax reports;
(d) Preparing other required fund
				reports;
(e) Developing members'
				premiums and fees;
(f) Managing the
				investment of all or part of the Fund's assets; and
(g) Providing advisory services, including
				advice on investment objectives, asset allocation, manager search, and
				performance monitoring.
(13) "Sponsoring organization" means the
				governmental group that has been approved for joint self-insurance coverage
				under Labor and Employment Article, §
										9-404, Annotated
				Code of Maryland.
(14) "Surplus
				monies not needed to meet current obligations (surplus monies)" means monies
				not needed to pay current Fund:
(a)
				Expenses;
(b)
				Obligations;
(c) Open claim
				reserves; and
(d) Incurred, but not
				reported, claim reserves.