Title 19. Property and Casualty Insurance — Subtitle 6. Insurance Pools
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 19-601 (2026)
Title 19. Property and Casualty Insurance
Subtitle 6. Insurance Pools
§ 19–601LinkCopy Citation
The following may pool together to purchase property insurance or casualty insurance:
(1)
associations, corporations, institutions, organizations, or societies that are exempt from taxation under § 501(c)(3) of the Internal Revenue Code;
(2)
clubs that are organized and operated exclusively for recreational purposes and are exempt from taxation under § 501(c)(7) of the Internal Revenue Code;
(3)
nonprofit associations, corporations, or other organizations that are comprised of residents of a community and are operated exclusively for the promotion of social welfare and general neighborhood improvement; and
(4)
nonprofit organizations that are comprised of property owners in a subdivision or group of subdivisions and whose purpose is to represent the mutual interests of the property owners regarding the construction, protection, and maintenance of commonly owned or used property and improvements.
Md. Code Ann., Ins. § 19-602 (2026)
Title 19. Property and Casualty Insurance
Subtitle 6. Insurance Pools
§ 19–602LinkCopy Citation
(a)
In this section, “public entity” means:
(1)
a political subdivision of the State;
(2)
a unit of the State or a local government;
(3)
a nonprofit or nonstock corporation that:
(i)
receives 50% or more of its annual operating budget from the State or a local government; and
(ii)
is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; or
(4)
a Resilience Authority as defined in § 22–101 of the Local Government Article.
(b)
Public entities may pool together to purchase casualty insurance, property insurance, or health insurance or to self–insure against casualty, property, or health risks.
Md. Code Ann., Ins. § 19-603 (2026)
Title 19. Property and Casualty Insurance
Subtitle 6. Insurance Pools
§ 19–603LinkCopy Citation
(a)
In this section, “local government” means a county or municipal corporation in the State.
(b)
A local government:
(1)
may enter into an agreement to fund an insurance pool established under this subtitle; and
(2)
except as otherwise provided in this section, may determine by resolution the provisions, terms, conditions, and duration of the agreement.
(c)
(1)
Except as provided in paragraph (2) of this subsection, a payment obligation in an agreement authorized by this section:
(i)
shall be a general obligation of the local government to which its full faith and credit and unlimited taxing power is pledged; and
(ii)
may not be subject to annual appropriation by the local government.
(2)
If a provision of the Maryland Constitution limits a local government in undertaking a payment obligation described in paragraph (1) of this subsection, or requires a local government to comply with certain procedures before undertaking a payment obligation described in paragraph (1) of this subsection, the local government may provide that the payment obligation is:
(i)
a limited obligation of the local government repayable from assets and revenues as provided in the agreement; or
(ii)
subject to annual appropriation by the local government.
(d)
Subject to the limitations of this section, a local government may undertake a payment obligation in an agreement authorized by this section:
(1)
without regard to any limitations contained in its charter or other applicable public local or public general law that otherwise would apply; and
(2)
without complying with any procedures contained in its charter or other applicable public local or public general law that otherwise would be required.
(e)
On the date a local government executes an agreement authorized by this section, the aggregate outstanding and unpaid principal amount that the local government is obligated to pay under the agreement may not exceed 0.2% of the local government’s assessable base for real property tax purposes for the fiscal year in which the agreement is executed, as determined by the State Department of Assessments and Taxation.