Md. Code Regs. 14.09.13.01

Current through Register Vol. 51, No. 25, December 13, 2024

Section 14.09.13.01 - Definitions

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

(1) "Acceptable financial indicators" means indicators consistent with comparable industry financial health and performance criteria as reported in rating services such as RMA Annual Financial Statement Studies or equivalent recognized indices.

(2) "Act" means the Maryland Workers' Compensation Act, Labor and Employment Article, Title 9, Annotated Code of Maryland.

(3) "Actuarial report" means a report written by an actuary who is a member of the Casualty Actuarial Society or the American Academy of Actuaries.

(4) "Affiliate" means a member of a group of companies with common ownership but not the company having a direct ownership interest.

(5) "Commission" means the Maryland State Workers' Compensation Commission.

(6) "Investment grade securities" means federal or state bonds accepted by the circuit courts for investment of trust money.

(7) "Irrevocable trust, custodian, safekeeping, or book entry account" means a depository account of monies and investment grade securities held by a Federal Deposit Insurance Corporation bank that agrees to hold amounts ordered by the Commission for a self-insurer that can only be withdrawn by the Commission, or if a trust exists pursuant to the terms of the trust document.

(8) Self-Insurer.

(a) "Self-insurer" means an employer which has been granted the privilege to self-insure its liability and to maintain direct responsibility for the payment of this liability under the Act including any approved subsidiary of the self-insurer.

(b) "Self-insurer" does not include a parent company or affiliate that has guaranteed the payment of the self-insurer's liability.

(9) "State" means the State of Maryland.

(10) "Third-party administrator" means a company that handles and adjusts workers' compensation claims under contract to a self-insurer.

Md. Code Regs. 14.09.13.01

Amended effective 48:20 Md. R. 890, eff. 10/18/2021