An insurer may not issue a workers’ compensation insurance policy unless the State Workers’ Compensation Commission has approved the form of the policy. Each policy of workers’ compensation insurance shall include the following provisions: the State Workers’ Compensation Commission, in the name of the State and for the benefit of a person entitled to compensation under the policy, may enforce the liability of the insurer for payment of compensation by: making the insurer a party to the original claim application; or filing a separate claim application; the bankruptcy or insolvency of an employer does not relieve the insurer from payment of compensation for injury or death of a covered employee occurring during the life of the policy; as between the employee and the insurer, if the employer receives notice or has knowledge of the occurrence of an accidental injury, occupational disease, hernia, or hearing loss, the insurer is deemed also to have received the notice or have the knowledge; for the purposes of Titles 9 and 10 of the Labor and Employment Article, the insurer is subject to the same jurisdiction as the employer; and each award, decision, finding, or order against the employer for payment of compensation under Titles 9 and 10 of the Labor and Employment Article also is binding on the insurer. A person that violates subsection (a) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000. The Commissioner may revoke the certificate of authority of a person that is convicted under this section.

The Commissioner may: determine whether the premium rates of an insurer adequately cover the risks applicable to a workers’ compensation insurance policy under Titles 9 and 10 of the Labor and Employment Article; and require the insurer to set premium rates that are adequate to cover those risks. Each insurer shall set premium rates for workers’ compensation insurance in accordance with the requirements of the Commissioner under subsection (a) of this section. A person that violates subsection (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000. The Commissioner may revoke the certificate of authority of a person that is convicted under this section.

A workers’ compensation insurance policy issued or delivered in the State may provide for deductibles. When a claim is payable under a workers’ compensation insurance policy with deductibles: the insurer shall pay the claim including any applicable deductible; and the employer shall reimburse the insurer for any amount paid up to the limit of any applicable deductible.

When a workers’ compensation insurance policy is renewed, the insurer shall give the employer a conspicuous written notice that: the employer must have a work permit for each minor employee as required by Title 3, Subtitle 2 of the Labor and Employment Article; and if the employer does not have a work permit for a minor employee: the State Workers’ Compensation Commission may award twice the compensation and death benefits otherwise allowed under Title 9, Subtitle 6 of the Labor and Employment Article in a claim by that employee or that employee’s dependent; and the employer is solely liable for any increase in compensation or death benefits in a claim by that employee or that employee’s dependent.

This section does not apply to the cancellation of a policy or binder of workers’ compensation insurance by an insurer during the 45–day underwriting period in accordance with § 12–106 of this article. Except for a cancellation for nonpayment of premium, an insurer may not cancel or refuse to renew a workers’ compensation insurance policy before its expiration unless, at least 45 days before the date of cancellation or nonrenewal, the insurer: serves on the employer, by personal service or certified mail addressed to the last known address of the employer, a notice of intention to cancel or nonrenew the policy; and files a copy of the notice with the State Workers’ Compensation Commission’s designee. Notice under this section may be given: if the employer is a corporation, to an agent or officer of the corporation on whom legal process may be served; and if the employer is a partnership, to a partner. Notice under this section shall state when the cancellation or nonrenewal takes effect. Whenever an employer receives a notice under this section, the employer immediately shall secure coverage in accordance with § 9–402 of the Labor and Employment Article that will be in effect when the cancellation takes effect. The notice shall state the insurer’s actual reason for proposing the cancellation or nonrenewal of the policy. The Commissioner may not disallow a proposed action of an insurer because the statement of actual reason contains: grammatical, typographical, or other errors, if the errors are not material to the proposed action and are not misleading; surplus information, if the surplus information is not misleading; or erroneous information, if in the absence of the erroneous information there is a sufficient basis to support the proposed action. At least 10 days before the date of cancellation of a workers’ compensation insurance policy for nonpayment of premium, the insurer shall send to the employer, by certificate of mail, a written notice of the intention to cancel for nonpayment of premium. An insurer shall file a copy of the notice sent under paragraph (1) of this subsection with the State Workers’ Compensation Commission’s designee.