§ 25–308
Statutes in effect as of October 1, 2026.
Md. Code Ann., Ins. § 25-308 (2026)
Title 25. Alternative Market Mechanisms
Subtitle 3. Group Self-Insurance for Workers' Compensation
§ 25–308LinkCopy Citation
(a)
(1)
After notice and opportunity for a hearing, the Commissioner may impose a monetary penalty on a person or self–insurance group that the Commissioner finds to be in violation of this subtitle or a regulation adopted under this subtitle.
(2)
A monetary penalty imposed under this subsection may not exceed $1,000 for each violation or $10,000 in the aggregate.
(3)
A person or self–insurance group that is assessed a monetary penalty under this subsection shall pay the penalty to the Commissioner for the use of the State.
(b)
(1)
After written notice and opportunity for a hearing, the Commissioner may issue an order that requires a person or self–insurance group to cease and desist from engaging in an act or practice that the Commissioner finds to be in violation of this subtitle or a regulation adopted under this subtitle.
(2)
If the Commissioner finds, after notice and opportunity for a hearing, that a person or self–insurance group has violated an order issued under this subsection, the Commissioner may:
(i)
impose a monetary penalty of not more than $10,000 for each violation of the order or $100,000 in the aggregate; and
(ii)
suspend or revoke the authority of the self–insurance group to operate.
(c)
Notwithstanding any other provision of this subtitle, after notice and opportunity for a hearing, the Commissioner may suspend or revoke the authority of a self–insurance group to operate if the Commissioner determines that the self–insurance group:
(1)
is insolvent;
(2)
failed to pay the special fund contribution or regulatory fee imposed on the self–insurance group;
(3)
failed to comply within the time set with a provision of this subtitle, a regulation adopted under this subtitle, or a lawful order of the Commissioner;
(4)
obtained its authority to operate by fraud, including making a material misrepresentation in the application for authority to operate as a self–insurance group;
(5)
misappropriated, converted, illegally withheld, or refused to pay on proper demand money that has been entrusted to the self–insurance group or its administrator in its fiduciary capacity and that belongs to a member of the self–insurance group, an employee of a member, or a person entitled to payment; or
(6)
for any other reason, must have its authority to operate suspended or revoked to protect the members or insureds of a self–insurance group or the public.