Md. Code Regs. 14.09.13.08

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

Section 14.09.13.08 - Reporting Requirements

A. Financial Reports.

(1) A self-insurer shall file an annual certified, audited financial report and 10K reports, if applicable, with the Commission within 120 days of the end of the reporting period. An extension may be granted upon written request of the Commission.

(2) The self-insurer shall submit interim reports as requested by the Commission.

(3) Financial reports shall be filed with the Commission electronically and as directed by the Commission.

B. Claims Reports.

(1) A self-insurer shall maintain true and accurate records of workers' compensation paid and incurred costs and case reserves on each claim in indemnity, medical, and allocated costs paid and reserves for each claim. This information shall be provided annually to the Commission or more frequently if requested by the Commission.

(2) Reports submitted by a service company or third-party administrator on behalf of the self-insurer shall be treated as if they were submitted by the self-insurer directly.

(3) Claims reports shall be filed with the Commission electronically and as directed by the Commission.

C. Penalty.

(1) After notice and opportunity for a hearing, the Commission may assess an individual employer self-insurer that the commission finds to be in violation of this regulation a fine not exceeding $1,000 for each violation.

(2) Failure to pay a fine assessed under this section may result in revocation of self-insurance status.

D. Reserves. A self-insurer shall evaluate and maintain adequate records of the past, present, and future liability of all claims incurred under its self-insurance program, including their closed and current claims in addition to reserves for future anticipated costs. Future anticipated costs shall represent the expected total cost of compensation over the life of each claim, based on all available information at the valuation date. Annually required reserves reports shall also include estimates of incurred but not reported costs applicable to both open claims, closed claims and claims which have occurred, but have not yet been reported.

E. Change In Ownership Or Financial Condition.

(1) A self-insurer shall notify the Commission within 30 days of a change in majority ownership. Existing parental guarantees may not be released until an acceptable replacement guarantee is received by the acquiring parent company.

(2) A self-insurer or parent guarantor that amends its organizational documents to change its identity, status, or business structure, including merger, acquisition, and disposition, shall promptly notify the Commission in writing. All legal agreements and instruments that obligate the self-insurer, guarantors, excess carrier, or security provider shall be updated by the provider within 30 days. The Commission may request copies of documents or information considered necessary to determine whether an action has affected the ability of the employer to self-insure.

F. Bankruptcy and Closure. A current or former self-insurer shall notify the Commission within 10 days by certified mail, return receipt requested, of a petition for bankruptcy or closure filing and shall provide an updated claims report as defined in §B of this regulation.

Md. Code Regs. 14.09.13.08

Regulation .08 amended effective April 11, 2005 (32:7 Md. R. 683); amended effective 48:20 Md. R. 890, eff. 10/18/2021