Md. Code Regs. 31.08.09.06

Current through Register Vol. 51, No. 24, December 2, 2024

Section 31.08.09.06 - Surety Bonds

A. Each group shall obtain and maintain a surety bond for the protection of group members and their employees in an amount not less than $500,000 unless the Commissioner specifies a different amount.

B. The Commissioner may, in the Commissioner's discretion, waive the requirement of §A of this regulation and permit a group to deposit and maintain in trust with the State Treasurer, for the protection of group members, employees and creditors, cash or government securities of the type described in Insurance Article, § 5-701(b), Annotated Code of Maryland, in an amount not less than the amount specified in §A of this regulation.

C. Each administrator and service company shall obtain a fidelity bond in an amount not less than $100,000, and a performance bond in an amount not less than $50,000, before providing services to a workers' compensation self-insurance group.

Md. Code Regs. 31.08.09.06

Regulation .06A amended as an emergency provision effective October 28, 2002 (29:23 Md. R. 1809); amended permanently effective February 3, 2003 (30:2 Md. R. 76); amended effective 44:4 Md. R. 256, eff. 1/1/2018