Md. Code, Insurance § 24-306
This is the official text of Md. Code, Insurance § 24-306, part of Maryland’s Code, Insurance — regulates insurance companies and the policies they sell.
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§24–306.
Official statutory text
(a) The Company:
(1) shall be an authorized insurer; and
(2) on and after October 1, 2013, as a condition of being an authorized insurer, shall be the workers’ compensation insurer of last resort for employers covered under Title 9 of the Labor and Employment Article.
(b) Before October 1, 2013, the Fund shall serve as the workers’ compensation insurer of last resort for workers’ compensation insurance and as a competitive workers’ compensation insurer under the same terms and conditions as the Fund served before October 1, 2012.
(c) The Company may not cancel or refuse to renew or issue a policy except for:
(1) nonpayment of a premium for current or prior policies issued by the Fund or the Company;
(2) failure to provide payroll information to the Fund or the Company;
(3) failure to cooperate in any payroll audit conducted by the Fund or the Company; or
(4) failure to reimburse the Company under a policy with deductibles as required under § 19–404 of this article.
(d) The Company may engage only in the business of workers’ compensation insurance in accordance with State law.
(e) Subject to the requirements of Title 7 of this article, the Company may establish, own, or acquire a subsidiary for any lawful purpose if the subsidiary:
(1) is, or after acquisition will be, wholly owned by the Company;
(2) engages in a business activity that is ancillary to the workers’ compensation insurance business; and
(3) is operated for the purpose of benefiting the Company.
(1) shall be an authorized insurer; and
(2) on and after October 1, 2013, as a condition of being an authorized insurer, shall be the workers’ compensation insurer of last resort for employers covered under Title 9 of the Labor and Employment Article.
(b) Before October 1, 2013, the Fund shall serve as the workers’ compensation insurer of last resort for workers’ compensation insurance and as a competitive workers’ compensation insurer under the same terms and conditions as the Fund served before October 1, 2012.
(c) The Company may not cancel or refuse to renew or issue a policy except for:
(1) nonpayment of a premium for current or prior policies issued by the Fund or the Company;
(2) failure to provide payroll information to the Fund or the Company;
(3) failure to cooperate in any payroll audit conducted by the Fund or the Company; or
(4) failure to reimburse the Company under a policy with deductibles as required under § 19–404 of this article.
(d) The Company may engage only in the business of workers’ compensation insurance in accordance with State law.
(e) Subject to the requirements of Title 7 of this article, the Company may establish, own, or acquire a subsidiary for any lawful purpose if the subsidiary:
(1) is, or after acquisition will be, wholly owned by the Company;
(2) engages in a business activity that is ancillary to the workers’ compensation insurance business; and
(3) is operated for the purpose of benefiting the Company.
Status: in_force · Read it on the official government site
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