Insurance (GIN) — Title 24. State Created Mutual Societies and Other Entities
Statutes in effect as of October 1, 2026.
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
Md. Code Ann., Ins. § 24-201 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–201LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Health care facility” has the meaning stated in § 19–114 of the Health – General Article.
(c)
“Health care provider” means a person licensed or authorized to practice a health occupation.
(d)
“Physician” means an individual who:
(1)
is licensed to practice medicine in the State; or
(2)
lawfully practices medicine without a license under § 14–302 (a)(1) through (4) of the Health Occupations Article.
(e)
“Practice medicine” has the meaning stated in § 14–101 of the Health Occupations Article.
(f)
“Society” means the Medical Mutual Liability Insurance Society of Maryland.
(g)
“Surplus” does not include debt of the Society incurred in accordance with § 3–116(a)(1) of this article to enable it to comply with a surplus requirement.
Md. Code Ann., Ins. § 24-202 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–202LinkCopy Citation
Subject to the limitations and immunities of this subtitle, the purpose of this subtitle is to provide:
(1)
for the payment of indemnities to persons that suffer injuries arising out of the rendering of or failure to render professional services by physicians or other health care providers;
(2)
a means for physicians or other health care providers to obtain insurance against liability for injuries arising out of the rendering of or failure to render professional services; and
(3)
property insurance and casualty insurance related to the provision of health care or to health care facilities used by physicians or other health care providers.
Md. Code Ann., Ins. § 24-203 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–203LinkCopy Citation
(a)
(1)
There is a Medical Mutual Liability Insurance Society of Maryland.
(2)
The Society is a nonstock corporation.
(b)
Except as otherwise provided in this subtitle, the Society has the powers, privileges, and immunities granted by and is subject to the provisions imposed on mutual insurers by this article and by the applicable provisions of the Corporations and Associations Article.
(c)
The Society is a member of the Joint Insurance Association and the Property and Casualty Insurance Guaranty Corporation.
(d)
(1)
The Society is not and may not be deemed a department, unit, agency, or instrumentality of the State for any purpose.
(2)
All debts, claims, obligations, and liabilities of the Society, whenever incurred, shall be the debts, claims, obligations, and liabilities of the Society only and not of the State or the State’s agencies, instrumentalities, officers, or employees.
(e)
(1)
The money of the Society is not part of the General Fund of the State.
(2)
The State may not budget for or provide General Fund appropriations to the Society.
(3)
The debts, claims, obligations, and liabilities of the Society are not a debt of the State or a pledge of the credit of the State.
Md. Code Ann., Ins. § 24-204 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–204LinkCopy Citation
(a)
There is a Board of Directors of the Society.
(b)
(1)
There shall be at least 11 directors on the Board.
(2)
The directors shall be elected by the members of the Society in accordance with the articles of incorporation and bylaws of the Society.
(3)
The bylaws of the Society shall provide that:
(i)
not more than five directors may be licensed physicians;
(ii)
at least two directors must have had substantial experience as an officer or employee of an insurer;
(iii)
at least two directors must be officers and employees of the Society who are responsible for the daily management of the Society; and
(iv)
the Board of Directors must consist of individuals who live in different geographical areas of the State.
(c)
The Board of Directors governs the Society and exercises the corporate powers of the Society.
Md. Code Ann., Ins. § 24-205 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–205LinkCopy Citation
(a)
(1)
If the Board of Directors determines that the affairs of the Society may be administered suitably and efficiently, the Society may enter into a contract with a licensed insurer or licensed nonprofit health service plan to administer the affairs of the Society, subject to the continuing direction of the Board of Directors specified in the articles of incorporation and bylaws of the Society and the contract.
(2)
A contract may not exceed 5 years.
(b)
(1)
On execution of the contract, the Society promptly shall file a true copy of the contract with the Commissioner.
(2)
The contract is effective 30 days after the date of filing unless, before the effective date, the Commissioner disapproves the contract as contrary to law or public policy or as unduly onerous and states the reasons for the disapproval.
Md. Code Ann., Ins. § 24-206 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–206LinkCopy Citation
On approval of the application for a certificate of authority, the Commissioner shall issue to the Society a certificate of authority that authorizes the Society to issue:
(1)
the following policies of casualty insurance:
(i)
insurance against the liability of physicians or other health care providers for injury arising out of the rendering of or failure to render professional services by the insured;
(ii)
insurance against the liability of a person for whose acts or omissions a physician or other health care provider is responsible under item (i) of this item or with whom the physician or other health care provider is associated, including partners, employees, employers, associates, consultants, or a professional service corporation whose stock the insured owns; and
(iii)
insurance against other liability for injury by persons employed in, by property used in, or by activities incidental to, practicing medicine or practicing another health occupation by the named insured, when issued as incidental coverage with or supplemental to insurance specified in item (i) of this item; and
(2)
policies of property insurance and casualty insurance that are related to the provision of health care or to health care facilities that physicians or other health care providers use where health care is practiced on a regular basis.
Md. Code Ann., Ins. § 24-207 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–207LinkCopy Citation
(a)
Each policyholder is subject to assessment as provided in §§ 3-110, 3-111, and 3-112 of this article.
(b)
Notwithstanding subsection (a) of this section, if the Society meets all applicable requirements of this article about the sale of nonassessable policies, including the requirements of §§ 4-104, 4-105, and 4-106 of this article, the Society may issue nonassessable policies subject to:
(1)
§ 3-113 of this article;
(2)
all other applicable provisions of this article; and
(3)
the Corporations and Associations Article.
Md. Code Ann., Ins. § 24-208 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–208LinkCopy Citation
(a)
The directors of the Society may establish membership fees in amounts they consider reasonable, to be paid by the members of the Society.
(b)
Each physician who paid the special one-time tax imposed by former Article 48A, § 552(b) of the Code shall be credited with the amount of the tax paid against the liability of the physician for the membership fee.
(c)
On payment of the membership fee, a physician or other health care provider may be insured by the Society for any and all hazards customarily insured by the Society, subject to any coverage limitations specified by the Society in accordance with policy limitations, exclusions, conditions, deductibles, and loss-sharing requirements.
Md. Code Ann., Ins. § 24-209 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–209LinkCopy Citation
(a)
Policies that the Society issues to each class of physicians and other health care providers shall be essentially uniform in terms and conditions of coverage.
(b)
Notwithstanding subsection (a) of this section, the Society may:
(1)
establish reasonable classifications of physicians and other health care providers, insured activities, and exposures based on a good faith determination of relative exposures and hazards among classifications;
(2)
vary the limits, coverages, exclusions, conditions, and loss-sharing provisions among classifications; and
(3)
establish, for an individual physician or other health care provider within a classification, reasonable variations in the terms of coverage, including deductibles and loss-sharing provisions, based on the insured’s prior loss experience and current professional training and capability.
(c)
(1)
In this subsection, “nursing facility” has the meaning stated in § 19-301 of the Health - General Article.
(2)
The Society may not deny, cancel, or refuse to renew medical professional liability insurance coverage for a physician, based solely on the physician’s:
(i)
employment by, or provision of health care services at, an assisted living or nursing facility;
(ii)
provision of mammography services; or
(iii)
provision of services in an emergency room.
Md. Code Ann., Ins. § 24-210 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–210LinkCopy Citation
(a)
Notwithstanding any other provision of this subtitle, the Society may establish, own, or control a subsidiary for any business purpose.
(b)
A subsidiary that is established, owned, or controlled by the Society is not subject to this subtitle.
(c)
(1)
A subsidiary of the Society is not and may not be deemed a department, unit, agency, or instrumentality of the State for any purpose.
(2)
The State may not be held in any way liable or responsible for any of the debts, claims, obligations, or liabilities of a subsidiary of the Society or the Society.
(d)
Without the prior approval of the Board of Directors, including at least 80% of the physician members of the Board of Directors, the Society may not directly or indirectly capitalize, transfer moneys to, or purchase stock in an insurance subsidiary beyond the $3,250,000 used by the Society before December 31, 1989, to capitalize the insurance subsidiaries.
Md. Code Ann., Ins. § 24-211 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–211LinkCopy Citation
(a)
(1)
Not later than June 30 of each year, the Society shall report to the Commissioner and to the General Assembly:
(i)
salaries and other compensation paid to officers, executives, and directors for the preceding calendar year;
(ii)
a summary and detailed financial statement for the four preceding calendar years indicating amounts for and changes in:
(1)
insurance reserves and losses;
(2)
assets and liabilities;
(3)
income and expenses; and
(4)
return on invested surplus; and
(iii)
management’s evaluation of the financial position of the Society.
(2)
The evaluation under paragraph (1)(iii) of this subsection shall include an analysis indicating whether sufficient resources exist to justify providing a dividend or similar distribution to members in the current year and, if not, how the current circumstances vary from prior years in which such distributions have been made.
(b)
Any rate filing by the Society shall include the information required under subsection (a) of this section.
(c)
(1)
Before the Society may pay to its members a dividend or similar distribution, the Society shall provide to the Commissioner, using a methodology prescribed by the Commissioner, an analysis indicating the extent to which the distribution results from any excess of premiums collected over accumulated losses for incidents arising in any premium year during which the State provided financial assistance.
(2)
(i)
To the extent the analysis required under paragraph (1) of this subsection determines that funds available for distribution are attributed to a year in which financial assistance is provided, the Commissioner shall order the Society to pay a portion of the distribution to the State.
(ii)
The amount paid to the State shall be determined based on the ratio of State expenditures for financial assistance to total premiums earned for each premium year for which State financial assistance was made.
Md. Code Ann., Ins. § 24-212 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–212LinkCopy Citation
(a)
If the Society requests a rate increase of more than 7.5% and, at the time of the rate filing, the Society’s surplus is more than 500% of its authorized control level risk-based capital, the Commissioner may determine whether the Society’s surplus is excessive.
(b)
If, after a hearing, the Commissioner determines that the surplus is excessive, the Commissioner may order the rates filed to be reduced.
Md. Code Ann., Ins. § 24-213 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–213LinkCopy Citation
(a)
The Legislative Auditor shall conduct a fiscal and compliance audit of the accounts and transactions of the Society for each year in which the Society receives a disbursement from the Rate Stabilization Account under § 19–805 of this article.
(b)
Within one year of the date of an audit report required under subsection (a) of this section, the Legislative Auditor shall conduct a follow–up audit to determine the status of any audit recommendations.
(c)
The Society shall pay the cost of each audit.
Md. Code Ann., Ins. § 24-214 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 2. Medical Mutual Liability Insurance Society of Maryland
§ 24–214LinkCopy Citation
For policies that take effect on or after January 11, 2005 and through December 31, 2009, the Society may not pay a commission at a rate that exceeds 5% of the premium.
Subtitle 3. Chesapeake Employers' Insurance Company
Md. Code Ann., Ins. § 24-301 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–301LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Board” means the Board for the Chesapeake Employers’ Insurance Company.
(c)
“Company” means the Chesapeake Employers’ Insurance Company.
(d)
“Fund” means the Injured Workers’ Insurance Fund established under Title 10 of the Labor and Employment Article.
Md. Code Ann., Ins. § 24-302 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–302LinkCopy Citation
The General Assembly finds and determines that:
(1)
employers’ access to affordable workers’ compensation insurance is of utmost importance to the economy of the State;
(2)
the Fund has been the State’s insurer of last resort for workers’ compensation insurance since 1914;
(3)
since its creation, the Fund was permitted to compete with the private insurance market; however, the Fund did not become an effective competitive insurer until the General Assembly exempted the Fund from most laws that apply to State government agencies and required the Fund to be a regulated insurer;
(4)
the most effective way to ensure that Maryland’s workers’ compensation system remains stable and affordable is to encourage and create as much competition in the marketplace as possible;
(5)
the long–term competitive success of the Fund would be enhanced if the final barriers to full competition were eliminated by converting the Fund into a fully competitive, fully regulated, private insurer;
(6)
converting the Fund into a private, nonstock, nonprofit insurer would level the competitive playing field for all workers’ compensation insurers operating in the State;
(7)
converting the Fund into a private, nonstock, nonprofit insurer would provide assurance to Maryland employers that the financial success of the Fund would inure to their benefit as policyholders through dividends and lower rates and that surplus funds could not be transferred to the State’s General Fund;
(8)
the interests of the State would be protected if the Fund’s statutory purpose of insurer of last resort for workers’ compensation insurance is preserved and the Governor retains the right to appoint two members of the board of the new company;
(9)
(i)
the interests of the employees of the Fund would be satisfied by ensuring that current employees have the option to remain State employees of the Fund after the conversion of the Fund to a private, nonstock, nonprofit insurer; and
(ii)
the interests of employees of the Fund would further be satisfied by ensuring that current long–term State employees who remain State employees of the Fund after the conversion of the Fund to a private, nonstock, nonprofit insurer shall remain in the State retirement system and, therefore, would not be unfairly penalized by being prematurely forced out of the State retirement system due to the conversion; and
(10)
the interests of the residents of the State, both employers and employees, will be best met by converting the Fund into a private, nonstock, nonprofit, fully regulated, competitive insurer.
Md. Code Ann., Ins. § 24-303 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–303LinkCopy Citation
(a)
There is a Chesapeake Employers’ Insurance Company.
(b)
The Company shall be:
(1)
a private, nonprofit, nonstock corporation organized under State law; and
(2)
subject to the applicable provisions of the Corporations and Associations Article as a nonstock corporation.
(c)
Before October 1, 2013, the Company shall:
(1)
file articles of incorporation under the Corporations and Associations Article; and
(2)
take all steps necessary to be a private, nonprofit, nonstock corporation organized under State law.
Md. Code Ann., Ins. § 24-304 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–304LinkCopy Citation
(a)
Before October 1, 2013, the Company shall:
(1)
file an application for a certificate of authority under this article and a statement of the risk–based capital levels of the Company as of the date of the application prepared in accordance with § 4–303 of this article; and
(2)
take all steps necessary to be an authorized domestic insurer under State law.
(b)
On approval of the application for a certificate of authority, the Commissioner shall issue to the Company a certificate of authority that authorizes the Company to issue policies under Title 9 of the Labor and Employment Article.
(c)
Except as otherwise provided in this subtitle, the Company has the powers, privileges, and immunities granted by and is subject to the provisions applicable to insurers authorized to write workers’ compensation insurance under this article.
(d)
The Company may issue policies for:
(1)
employer’s liability insurance; and
(2)
insurance under a federal compensation law.
(e)
Except as otherwise provided in this subtitle, the Company shall be:
(1)
authorized, examined, and regulated by the Commissioner in the same manner and to the same extent as other authorized property and casualty insurers; and
(2)
subject to each provision of this article that is applicable to other authorized property and casualty insurers.
(f)
The Company is a member of the Property and Casualty Insurance Guaranty Corporation.
Md. Code Ann., Ins. § 24-306 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–306LinkCopy Citation
(a)
The Company:
(1)
shall be an authorized insurer; and
(2)
on and after October 1, 2013, as a condition of being an authorized insurer, shall be the workers’ compensation insurer of last resort for employers covered under Title 9 of the Labor and Employment Article.
(b)
Before October 1, 2013, the Fund shall serve as the workers’ compensation insurer of last resort for workers’ compensation insurance and as a competitive workers’ compensation insurer under the same terms and conditions as the Fund served before October 1, 2012.
(c)
The Company may not cancel or refuse to renew or issue a policy except for:
(1)
nonpayment of a premium for current or prior policies issued by the Fund or the Company;
(2)
failure to provide payroll information to the Fund or the Company;
(3)
failure to cooperate in any payroll audit conducted by the Fund or the Company; or
(4)
failure to reimburse the Company under a policy with deductibles as required under § 19–404 of this article.
(d)
The Company may engage only in the business of workers’ compensation insurance in accordance with State law.
(e)
Subject to the requirements of Title 7 of this article, the Company may establish, own, or acquire a subsidiary for any lawful purpose if the subsidiary:
(1)
is, or after acquisition will be, wholly owned by the Company;
(2)
engages in a business activity that is ancillary to the workers’ compensation insurance business; and
(3)
is operated for the purpose of benefiting the Company.
Md. Code Ann., Ins. § 24-307 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–307LinkCopy Citation
(a)
(1)
There is a Board for the Chesapeake Employers’ Insurance Company.
(2)
The Board shall manage the business and affairs of the Company as a private, nonprofit corporation in accordance with State law.
(b)
(1)
The Board shall consist of nine members, of which:
(i)
two members shall be appointed by the Governor; and
(ii)
subject to paragraph (3) of this subsection, seven members shall be appointed by the policyholders of the Company under procedures provided in the bylaws of the Board.
(2)
To the extent practicable, the Board shall reflect the geographic and demographic, including race and gender, diversity of the State.
(3)
Of the seven members appointed by the policyholders:
(i)
two members shall have substantial experience as officers or employees of an insurer, but may not be employed by an insurer that is in direct competition with the Company while serving on the Board;
(ii)
one member shall be a policyholder of the Company;
(iii)
one member shall have significant experience in the investment business;
(iv)
one member shall have significant experience in the accounting or auditing field; and
(v)
one member shall have significant experience as a representative, employee, or member of a labor union.
(c)
Each member shall be a resident of the State.
(d)
(1)
The term of a member is 5 years.
(2)
The terms of members are staggered as required by the terms provided for members of the Board for the Fund on October 1, 2015.
(3)
At the end of a term, a member continues to serve until a successor is appointed and qualifies.
(4)
A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
(5)
A member may not serve for more than:
(i)
two full terms; or
(ii)
a total of 10 years.
(e)
(1)
The Governor may remove a member appointed by the Governor for incompetence or misconduct.
(2)
(i)
The policyholders may remove a member appointed by the policyholders at any time, with or without cause, by the affirmative vote of a majority of all of the votes entitled to be cast generally in the election of directors.
(ii)
The Commissioner may remove a member appointed by the policyholders for incompetence, misconduct, or malfeasance after notice and opportunity for a hearing under §§ 2–210 through 2–214 of this article.
(f)
The Board shall adopt rules, bylaws, and procedures.
Md. Code Ann., Ins. § 24-308 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–308LinkCopy Citation
(a)
Subject to subsection (b) of this section, the Board may declare a policyholder dividend in the form of a cash refund or credit to:
(1)
a policyholder based on the actual loss ratio that is better than the loss ratio used to calculate the policyholder’s premium; or
(2)
all policyholders whose loss ratio contributed to the Company’s surplus for that year.
(b)
(1)
The Board may not issue a policyholder dividend under subsection (a)(2) of this section unless the Commissioner has approved the policyholder dividend.
(2)
In determining whether to approve the policyholder dividend under paragraph (1) of this subsection, the Commissioner shall consider:
(i)
the Company’s surplus;
(ii)
material changes in premium rates, claims, market share, or types of insured risks;
(iii)
the methodology the Board used to determine that policyholders are eligible for the policyholder dividend; and
(iv)
any other factor the Commissioner considers relevant.
Md. Code Ann., Ins. § 24-309 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–309LinkCopy Citation
(a)
The Company is not and may not be deemed to be a department, unit, agency, or instrumentality of the State for any purpose.
(b)
Employees of the Company are not:
(1)
employees of the State; or
(2)
members of the State Retirement and Pension System.
(c)
All debts, claims, obligations, and liabilities of the Company, whenever incurred, shall be the debts, claims, obligations, and liabilities of the Company only and not of the State or the State’s departments, units, agencies, instrumentalities, officers, or employees.
(d)
(1)
Money of the Company is not part of the General Fund of the State.
(2)
The State may not budget for or provide General Fund appropriations to the Company.
(3)
The debts, claims, obligations, and liabilities of the Company are not a debt of the State or a pledge of the credit of the State.
Md. Code Ann., Ins. § 24-310 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–310LinkCopy Citation
(a)
Consistent with minority business purchasing standards applicable to units of State government under the State Finance and Procurement Article and consistent with the fiduciary duties of the Board, the Board shall attempt to use to the greatest extent feasible minority business enterprises to provide brokerage and investment management services to the Board.
(b)
For purposes of this section, brokerage and investment management services shall include services relating to all allocated asset classes.
(c)
(1)
To assist the Board in achieving the goal described under subsection (a) of this section, the Board shall undertake measures to remove any barriers that limit full participation by minority business enterprises in brokerage and investment management services opportunities afforded by the Company.
(2)
The measures undertaken by the Board shall include the use of a wide variety of media, including the Board’s Web site, to provide notice to a broad and varied range of potential providers about the brokerage and investment management services opportunities afforded by the Company.
(d)
In conjunction with the Governor’s Office of Small, Minority, and Women Business Affairs, the Board shall develop guidelines to assist it in identifying and evaluating qualified minority business enterprises in order to help the Company achieve the objective for greater use of minority business enterprises for brokerage and investment management services.
(e)
On or before September 1 each year, the Board shall submit a report to the Governor’s Office of Small, Minority, and Women Business Affairs and, in accordance with § 2–1257 of the State Government Article, the General Assembly on:
(1)
the identity of the minority business enterprise brokerage and investment management services firms used by the Board in the immediately preceding fiscal year;
(2)
the percentage and dollar value of the Company assets that are under the investment control of minority business enterprise brokerage and investment management services firms; and
(3)
the measures the Board undertook in the immediately preceding fiscal year in accordance with subsection (c)(2) of this section.
Md. Code Ann., Ins. § 24-311 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–311LinkCopy Citation
(a)
Except as provided in subsections (b) and (c) of this section, on October 1, 2013, all the functions, powers, duties, assets, real and personal property, accounts, liabilities, contracts, and obligations of the Fund shall be irrevocably transferred to the Company, including liability for all claims, whether known or unknown, arising out of any insurance policy previously issued by the Fund.
(b)
Any contract or agreement with the State for the third party administration of the State’s Self–Insured Workers’ Compensation Program for State Employees may not be transferred or assigned to the Company until the Fund no longer has employees.
(c)
The Fund shall retain those assets necessary to perform its duties under Title 10 of the Labor and Employment Article.
Md. Code Ann., Ins. § 24-312 (2026)
Title 24. State Created Mutual Societies and Other Entities
Subtitle 3. Chesapeake Employers' Insurance Company
§ 24–312LinkCopy Citation
The Company may not:
(1)
be converted to a mutual or stock company;
(2)
be sold; or
(3)
be dissolved.