# Insurance (GIN)

## Title 24. State Created Mutual Societies and Other Entities

### Subtitle 3. Chesapeake Employers' Insurance Company

#### Section 24-306

(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 Sec. 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.

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Md. Code Ann., Ins. (as displayed at mgaleg.maryland.gov, October 16, 2026)