Code of Maryland Regulations › Title 14 - INDEPENDENT AGENCIES › Subtitle 09 - WORKERS' COMPENSATION COMMISSION › Chapter 14.09.14 - Governmental Group Self-Insurance › Section 14.09.14.01-1 - Application

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application for
				governmental group coverage for the express purpose of establishing a group
				self-insurers' fund, to be administered under the direction of an elected board
				of trustees, and to provide workers' compensation coverage for a group of
				public employers of the same type of unit, shall be made to the Workers'
				Compensation Commission.
B. The
				application shall be made on a prescribed form and shall contain answers to all
				questions and shall be accompanied by the application fee in the amount as may
				be approved by the Commission from time to time.
C. Additional Requirements. The application,
				as submitted by the initial board of trustees of self-insurers' fund, shall be
				accompanied by all of the following:
(1) A
				copy of the bylaws of the proposed group self-insurers' fund.
(2) An individual application of each member
				of the group applying for coverage in the fund.
(3) A current financial statement and a
				budget report that shows planned expenditures are funded.
(4) Evidence of the financial ability of the
				group to meet its obligations under the Workers' Compensation Law.
(5) A composite listing of the estimated
				standard premium to be developed by each member of the group individually and
				in total as a group.
(6) Proof of
				payment by each member of not less than 25 percent of the estimated annual
				standard premium into a designated depository. For governmental entities, a
				letter of intent signed by the responsible financial officer pledging payment
				within 10 days of the approval of the fund by the Commission may constitute
				proof of payment.
(7) A
				confirmation of excess insurance by an authorized carrier in an acceptable
				amount and which complies with the requirements in Regulation .07 of this
				chapter.
(8) Designation of a
				qualified employee or administrator of the association or group, or a qualified
				service company with a copy of the signed service agreement.
(9) Designation of the initial board of
				trustees.
(10) Proof of a fidelity
				bond and errors and omissions policy in a form and amount acceptable to the
				Commission.
(11) If required, a
				surety bond written by an authorized carrier in an amount acceptable or other
				acceptable security.
(12) A copy of
				a trust and indemnity agreement which shall be subject to approval by the
				Commission. The agreement shall contain a provision jointly and severally
				binding the group and each member of it to comply with the provision of the
				Workers' Compensation Law.
(13) A
				breakdown of all projected administrative expenses for the fund year in an
				amount and as a percentage of the annual standard premium collected.
(14) Proof, satisfactory to the Commission,
				that the annual gross premiums of the fund will not be less than $500,000. The
				premium collected from each member shall be computed by applying the
				appropriate manual rates per payroll code classification and multiplying the
				manual rate by an experience modification factor, if the modification factor is
				applicable.
(15) Proof that the
				fund has within its own organization ample facilities and competent personnel
				to service its own program with respect to underwriting matters and industrial
				safety engineering or shall contract with a qualified service company or
				employer adjusters to provide these services. A qualified service company shall
				be used to handle claims adjusting and reporting of loss
				data.