Plain Text Law

Title 25 — Subtitle 02. State Insurance Programs

Chapter 01. Maryland Tort Claims Act—General

Regulation .01 Scope.Copy Citation

The regulations in COMAR 25.02.01—COMAR 25.02.04 apply only to claims asserted under the Maryland Tort Claims Act, State Government Article, §12-101 et seq., Annotated Code of Maryland.

Regulation .02 Definitions.Copy Citation

A.
In COMAR 25.02.01—COMAR 25.02.04, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Claim” means a claimant's written notification of an incident that meets all of the requirements of COMAR 25.02.03.01A and is received by the Treasurer.
(2)
“Claimant” means a person described in COMAR 25.02.03.02 who submits a claim under the Maryland Tort Claims Act to the Treasurer.
(3)
“Incident” means an act or omission of State personnel that constitutes an alleged tort under the Maryland Tort Claims Act and is alleged to have caused injury, loss, or damage to person or property by reason of a single occurrence.
(4)
“State personnel” means:
(a)
A State employee or official who is paid in whole or in part by the Central Payroll Bureau in the Office of the Comptroller;
(b)
An employee or official of:
(i)
The Maryland Transportation Authority,
(ii)
The Injured Workers' Insurance Fund,
(iii)
The Maryland Stadium Authority,
(iv)
The Maryland Environmental Service,
(v)
The overseas programs of the University College of the University of Maryland System,
(vi)
The Maryland Economic Development Corporation, or
(vii)
A Soil Conservation District;
(c)
A person who is a member of a State board, commission, or similar State entity;
(d)
A person who:
(i)
Is providing a service to or for the State,
(ii)
Is not paid in whole or in part by the State, and
(iii)
Otherwise meets the definition of “volunteer” set forth in §B(8), below;
(e)
An individual who, without compensation, exercises a part of the sovereignty of the State;
(f)
A student enrolled in a State educational institution for whom the Treasurer, based upon the determinations required by State Government Article, §12-101(5), has issued an insurance certificate;
(g)
A sheriff or deputy sheriff of a county or Baltimore City; or
(h)
An employee of a county who is assigned to a local department of social services.
(5)
“Submit” or its variations means actual receipt by the Treasurer.
(6)
“Treasurer” means the State Treasurer of Maryland or the Treasurer's designee.
(7)
Treasurer's Designee.
(a)
“Treasurer's designee” means only the:
(i)
Chief Deputy Treasurer; or
(ii)
Director of the Insurance Division of the State Treasurer's Office.
(b)
“Treasurer's designee” does not mean or include any other person, including, but not limited to:
(i)
An officer or employee of State government other than those persons identified in §B(7)(a), above;
(ii)
The Comptroller of the Treasury, the Attorney General, or the Secretary of State; or
(iii)
A commercial insurer, adjuster, claims administrator, or similar person who provides services to the Treasurer as an independent contractor.
(8)
“Volunteer” means a person who:
(a)
Is performing services to or for a unit of State government, the employees of which are considered State personnel under §B(4), above;
(b)
Is engaged in the actual performance of the services in §B(8)(a) at the time of the incident giving rise to a claim; and
(c)
In the performance of the services in §B(8)(a):
(i)
Is participating in a formal volunteer program, or
(ii)
Before the beginning of those services, is formally recognized by the unit as a volunteer.

Chapter 02. Maryland Tort Claims Act—Coverage and Limits

Regulation .01 Commercial Insurance.Copy Citation

A.
Within budgetary appropriations and market availability, the Treasurer, in the Treasurer's sole discretion, may purchase commercial insurance to provide coverage, in whole or in part, under the Maryland Tort Claims Act.
B.
If the Treasurer elects to purchase commercial insurance under §A, above, the:
(1)
Policy limits, terms, and conditions of the commercial insurance shall determine coverage and establish the limitation of State liability; and
(2)
Payment limits, terms, and conditions applicable to the Treasurer's self-insurance program under this chapter shall determine the coverage and establish the limitation of State liability for purposes of the State's deductible or self-insured retention, if any, under this commercial insurance.

Regulation .02 Self-Insurance.Copy Citation

A.
General. Within budgetary appropriations, the Treasurer may provide self-insurance to provide coverage under the Maryland Tort Claims Act for those incidents not covered by purchased commercial insurance obtained pursuant to Regulation .01.
B.
Coverage. Subject to §A, above, self-insurance shall provide coverage for a tortious act or omission of State personnel that:
(1)
Is within the scope of public duties of the State personnel; and
(2)
No element of which constitutes malice or gross negligence.
C.
Exclusions and Limitations. The Treasurer may not provide self-insurance coverage for:
(1)
Punitive damages;
(2)
Interest before judgment;
(3)
A claim that arises from the combatant activities of the State militia during a state of emergency;
(4)
A tortious act or omission of State personnel:
(a)
That is not within the scope of the public duties of the State personnel, or
(b)
An element of which constitutes malice or gross negligence; or
(5)
A cause of action that law specifically prohibits.
D.
Limits of Liability. Within total budgeted funds available for self-insurance coverage of tort claims, the limits of State liability shall be:
(1)
Subject to §D(2) of this regulation, $200,000 per claimant for all injury, loss, and damage to person and property arising from a single incident. For the purpose of determining the limits of liability under this subsection, all persons claiming damages resulting from:
(a)
Bodily injury to, or the death of, any one person shall be considered to be one claimant; and
(b)
Damage to or destruction of a single item of property shall be considered to be one claimant.
(2)
Such greater, lesser, or additional limits as otherwise may be established by the annual State Budget for incidents occurring during that fiscal year.
E.
No Waiver of Immunity. The sovereign immunity of the State is not waived for claims in excess of the limits set forth in §D of this regulation.

Regulation .03 Discretionary Payments.Copy Citation

A.
Within budgetary appropriations, the Treasurer may pay from the State Insurance Trust Fund all or part of that portion of a claim that exceeds the limits of purchased commercial insurance coverage obtained pursuant to Regulation .01 of this chapter under the following conditions:
(1)
The claim is consistent with the provisions of Regulation .02B and C of this chapter;
(2)
A judgment or settlement has been entered granting the claimant damages greater than the limits of the purchased commercial insurance obtained pursuant to Regulation .01 of this chapter;
(3)
A request for a discretionary payment is submitted to the Treasurer within 60 days of entry of the settlement or judgment described in §A(2) of this regulation; and
(4)
The Board of Public Works, with the advice and counsel of the Office of the Attorney General, has approved the discretionary payment.
B.
A discretionary payment of part of a settlement or judgment pursuant to §A of this regulation:
(1)
Does not abrogate the sovereign immunity of the State beyond the waiver provided in Regulation .02 of this chapter; and
(2)
Is subject to the monetary limits of Regulation .02D of this chapter.
C.
Pursuant to State Government Article, §12-501(b), Annotated Code of Maryland, a decision of the Board of Public Works under §A(4) of this regulation is not subject to judicial review.

Chapter 03. Maryland Tort Claims Act—Claims Administration

Regulation .01 Submission of Claims.Copy Citation

For purposes of the provisions of State Government Article, § 12-106:
A.
A proper claim shall:
(1)
Contain a statement of facts that sets forth the nature of the claim, including the date, time, place, and description of the incident,
(2)
Contain a demand for money damages in a sum certain,
(3)
State the name and address of the claimant,
(4)
State the name and address, if known, of the alleged tortfeasor, including identification of the tortfeasor's employer,
(5)
State the name and address, if known, of any witness to the incident,
(6)
State the name, address, and telephone number of counsel for the claimant, if any, and
(7)
Be signed by the claimant;
B.
A valid claim that meets the requirements of §A, above, shall be deemed to have been submitted as of the date it is actually received by the State Treasurer's Office;
C.
Presentation of a purported claim to any unit of State government other than the State Treasurer's Office does not constitute proper submission of a claim; and
D.
The Treasurer may, but is not required to, consider a claim that does not meet the requirements of this regulation only with the approval of the Office of the Attorney General upon advice that, on the facts presented, there is a substantial probability that a court of this State would conclude that the claim is properly filed.

Regulation .02 Who May File.Copy Citation

A.
Property Damage. A claim for property damage or loss may be submitted by the owner of the property or by a person obligated by contract to repair or replace the property, or by the duly authorized attorney or legal representative of either.
B.
Personal Injury. A claim for personal injury may be submitted by the injured person or by that person's duly authorized attorney or legal representative.
C.
Death. A claim for death may be submitted by the decedent's personal representative on behalf of the decedent's estate or by any other person legally entitled to assert this claim in accordance with applicable state law, or by the duly authorized attorney or legal representative of either.
D.
Subrogation. A claim for loss:
(1)
Wholly compensated by an insurer with the rights of a subrogee may be submitted by the insurer;
(2)
Partially compensated by an insurer with the rights of a subrogee may be submitted by the parties jointly, as their respective interests may appear, or individually.
E.
Attorney or Legal Representative. A claim that is submitted by an attorney or legal representative shall:
(1)
Be presented in the name of the claimant;
(2)
Be signed by the attorney or legal representative;
(3)
Show the legal capacity of the person signing; and
(4)
Upon the Treasurer's request, be supplemented by evidence of that person's authority to submit a claim on behalf of the claimant as attorney, personal representative, executor, administrator, parent, guardian, or other representative.

Regulation .03 Filing of Claim.Copy Citation

A.
Where to File Claim. As prerequisite to its consideration under COMAR 25.02.01—25.02.04, an otherwise proper claim shall be submitted to the Treasurer.
B.
When to File Claim.
(1)
As a prerequisite to its consideration under COMAR 25.02.01—25.02.04, an otherwise proper claim shall be received by the State Treasurer's Office within 1 year after the injury that is the basis for the claim.
(2)
The filing period set forth in §B(1), above, is not suspended or tolled by reason of infancy, incompetency, other disability, or filing of suit.

Regulation .04 Initial Coverage Determination.Copy Citation

A.
Regulations .05—.08 of this chapter apply only to those claims for which the Treasurer provides self-insurance coverage, in whole or in part, under the Maryland Tort Claims Act.
B.
Subject to §C, below, the policy terms and conditions of purchased commercial insurance coverage, if any, govern the administration of claims that the Treasurer initially determines may be covered by commercial insurance.
C.
The determination of coverage under, and the limitation of liability with respect to the State's deductible or self-insured retention, if any, under any commercial insurance shall be governed by those regulations in COMAR 25.02.02 that are applicable to the Treasurer's self-insurance program.

Regulation .05 Documentation.Copy Citation

A.
Death. In support of a claim for death, the claimant may be required to submit the following evidence or information:
(1)
An authenticated death certificate or report, or both, of postmortem examination showing the date and cause of death and the age of the decedent;
(2)
Documentation of the decedent's employment or occupation, if any, at time of death, including the decedent's monthly or yearly salary or earnings and the duration of the decedent's last employment or occupation;
(3)
Identification by full name, address, birthdate, kinship, and marital status of each of the decedent's survivors, including identification of those survivors who were dependent for support upon the decedent at the time of the decedent's death;
(4)
Documentation of the degree of support afforded by the decedent to each survivor dependent for support upon the decedent at the time of the decedent's death;
(5)
Evidence of the decedent's general physical and mental condition before death;
(6)
Itemized bills for medical and burial expenses incurred by reason of the incident causing death or itemized receipts of payment for these expenses;
(7)
If damages for pain and suffering before death are claimed, a physician's detailed statement specifying the:
(a)
Injuries suffered,
(b)
Duration of pain and suffering,
(c)
Drugs administered for pain, and
(d)
Decedent's physical condition in the interval between injury and death; and
(8)
Other evidence or information that, in the Treasurer's judgment, may have a bearing on either the responsibility of the State for the death or for the damages claimed.
B.
Personal Injury. In support of a claim for personal injury, the claimant may be required to submit the following evidence or information:
(1)
A written report by the claimant's attending physician or dentist setting forth the nature and extent of the injury, the nature and extent of treatment, any degree of temporary or permanent disability, the prognosis, the period of any hospitalization, and any diminished earning capacity;
(2)
If the claimant is required by the Treasurer to submit to a physical or mental examination by a physician employed or retained by the State, a copy of the report of the examining physician, which shall be made available to the claimant upon the claimant's written request provided that the claimant has:
(a)
Upon the Treasurer's request, furnished the report referred to in §B(2), above, and
(b)
Made or agrees to make available to the Treasurer any other physician's reports previously or thereafter made of the physical or mental condition that is the subject matter of the claim;
(3)
Itemized bills for medical, dental, and hospital expenses incurred or itemized receipts of payment for those expenses;
(4)
If the prognosis reveals the necessity for future treatment, a statement of expected expenses for that treatment;
(5)
If a claim is made for lost wages due to loss of time from employment, a written statement from the claimant's employer stating the actual time lost from employment, whether the claimant is a full or part-time employee, and the wages or salary actually lost;
(6)
If a claim is made for loss of income and the claimant is self-employed, documentary evidence showing the amount of earnings actually lost; and
(7)
Other evidence or information that, in the Treasurer's judgment, may have a bearing on either the responsibility of the State for the personal injury or for the damages claimed.
C.
Property Damage. In support of a claim for property damage or loss, the claimant may be required to submit the following evidence or information:
(1)
Proof of ownership or evidence of the claimant's contractual obligation to repair or replace the property;
(2)
A detailed statement of the date of purchase, purchase price, actual cash value at time of the incident, and amount claimed with respect to each item of property reasonably capable of economical repair;
(3)
A detailed statement of the date of purchase, purchase price, actual cash value at time of the incident, and salvage value with respect to each item of property not reasonably capable of economical repair;
(4)
An itemized receipt of payment for emergency repairs or three itemized written estimates of the cost of necessary repairs; and
(5)
Other evidence or information that, in the judgment of the Treasurer, may have a bearing on either the responsibility of the State for the property damage or loss or for the damages claimed.

Regulation .06 Amendments.Copy Citation

A.
A claim submitted in compliance with Regulation .01 of this chapter may be amended within 1 year of the date of the injury for any reason, and after that, but before a final denial under Regulation .08 of this chapter, only on the basis of newly discovered evidence.
B.
A claim submitted to the Treasurer within 1 year of the injury that is not in compliance with Regulation .01 of this chapter:
(1)
May be amended within 30 days of the date of the claim's submission to comply with the requirements of Regulation .01; and
(2)
Shall be denied pursuant to Regulation .08 of this chapter if not amended in accordance with §B(1) of this regulation.
C.
An amendment shall be submitted in writing and be signed by the claimant.

Regulation .07 Action on Approved Claims.Copy Citation

A.
An agreement respecting an award, compromise, or settlement of a claim, regardless of amount, is not valid without the approval of the Treasurer.
B.
Payment of an award, compromise, or settlement shall be predicated upon the Treasurer's receipt and approval of a claim settlement agreement or a release of all claims properly executed by the claimant.
C.
If a claimant is represented by an attorney and the claimant's attorney has presented suitable evidence of representation to the Treasurer, a check issued by the Treasurer in payment of an award, compromise, or settlement shall, upon request of the claimant's attorney, designate both the claimant and the attorney as payee and shall be mailed or delivered to the claimant's attorney.
D.
Acceptance by the claimant of any award, compromise, or settlement offered by the Treasurer and intended by the Treasurer to dispose fully of the claim shall:
(1)
Be final and conclusive as to the claimant, the claimant's attorney or legal representative, and any other person on whose behalf or for whose benefit the claim has been presented; and
(2)
Constitute a full and complete release of any claim by reason of the same subject matter against the Treasurer, the State, and any State personnel whose act or omission gave rise to the claim.

Regulation .08 Denial of Claims.Copy Citation

A.
A written final denial of a claim by the Treasurer may include a general statement of the reason for the denial.
B.
Subject to §C, below, a claim shall be deemed to be denied finally if the Treasurer fails to give notice of a final decision on the claim within 6 months after the submission of the claim.
C.
Before the beginning of suit and before the expiration of the 3-year period specified in State Government Article, §12-106(b)(3), the Treasurer, upon a written request from the claimant or upon the Treasurer's own initiative, may reconsider a final denial.
D.
The claimant's submission of a request for reconsideration does not suspend or toll the period established by State Government Article, §12-106(b)(3), Annotated Code of Maryland, for instituting an action.

Chapter 04. Maryland Tort Claims Act—Actions

Regulation .01 Actions.Copy Citation

A.
The Treasurer's denial of a claim under COMAR 25.02.03.08 is subject to review only pursuant to State Government Article, §12-108, Annotated Code of Maryland.
B.
An action shall be filed in the appropriate court within 3 years after the cause of action arises.
C.
Service of the complaint and accompanying documents is sufficient only if made on the Treasurer.
D.
An action may not be instituted unless the:
(1)
Plaintiff first has submitted a written claim to the Treasurer in accordance with COMAR 25.02.03 within 1 year after the injury, loss, or damage to person or property that is the basis of the claim; and
(2)
Treasurer has denied the claim finally in accordance with COMAR 25.02.03.08.

Chapter 05. Maryland Tort Claims Act—Inmate Claims

Regulation .01 Scope.Copy Citation

This chapter applies to tort claims filed with the Treasurer pursuant to State Government Article, §12-107, by inmates who are confined in an institution within the Division of Correction or the Patuxent Institution.

Regulation .02 Process.Copy Citation

A.
When an inmate files a claim with the Treasurer, the Treasurer may suspend claims processing pending receipt of the decision of the Inmate Grievance Commission issued pursuant to COMAR 12.07.01.
B.
If the Treasurer elects to suspend claims processing pursuant to §A, above, the Treasurer shall:
(1)
Direct the inmate to file a complaint with the Inmate Grievance Commission, including with that complaint a copy of the Treasurer's notification requiring the inmate to file the complaint with the Inmate Grievance Commission; and
(2)
Notify the inmate that processing of the claim filed with the Treasurer shall be stayed pending the Treasurer's receipt of the Inmate Grievance Commission's decision on the inmate's complaint.
C.
The Treasurer may, in the Treasurer's discretion, waive the provisions of §§A and B, above, and process the claim in accordance with COMAR 25.02.03 without awaiting the decision of the Inmate Grievance Commission.

Regulation .03 Inmate Grievance Commission.Copy Citation

A.
If the Inmate Grievance Commission dismisses the inmate's complaint as wholly lacking in merit:
(1)
The Executive Director of the Inmate Grievance Commission shall notify the Treasurer of its decision; and
(2)
Upon receipt of notification of the Inmate Grievance Commission's decision, the Treasurer then shall process the inmate's claim in accordance with COMAR 25.02.03.
B.
If the Inmate Grievance Commission recommends to the Secretary of Public Safety and Correctional Services that the inmate be awarded monetary damages pursuant to COMAR 12.07.01.06, and the Secretary affirms the Inmate Grievance Commission's recommendation:
(1)
The Secretary of Public Safety and Correctional Services shall notify the Treasurer of the Secretary's decision;
(2)
Upon receipt of the Secretary's decision and subject to §B(3), below, the Treasurer then shall process the inmate's claim in accordance with COMAR 25.02.03; and
(3)
In processing the inmate's claim, the Treasurer may rely on fact-finding undertaken by the Inmate Grievance Commission in its review of the inmate's complaint.
C.
Payment of any award, compromise, or settlement of the inmate's tort claim pursuant to COMAR 25.02.03.07 shall be made through the State Insurance Trust Fund.
D.
The Treasurer shall notify the Secretary of Public Safety and Correctional Services of the Treasurer's approval or denial of the inmate's tort claim.

Chapter 06. Agency Claims

Regulation .01 Filing of Claim for Reimbursement.Copy Citation

A.
Subject to §B, below, when a unit of State government seeks reimbursement from the State Insurance Trust Fund for an occurrence of loss, damage, or liability, the unit shall file its claim with the Treasurer within 60 days after the unit discovers the loss, damage, or liability.
B.
If the unit discovers an occurrence of loss, damage, or liability in June, it shall file its claim for reimbursement with the Treasurer before July 20th of the next fiscal year.

Regulation .02 Theft of Personal Property.Copy Citation

A.
Unless otherwise required by statute or these regulations, a claim of a unit of State government under any insurance program provided by the Treasurer may not be accepted for theft or other disappearance of its personal property.
B.
A unit of State government shall be solely responsible for the care and custody of its property.

Chapter 07. Procurements of Insurance Broker Services and Commercial Insurance Policies

Regulation .01 General.Copy Citation

A.
Pursuant to State Finance and Procurement Article, Title 9, Annotated Code of Maryland, and subject to the authority of the Board of Public Works under State Finance and Procurement Article, §12-107, Annotated Code of Maryland, the State Treasurer is authorized to engage in and control the procurement of insurance and insurance services.
B.
The procurement of insurance and insurance services described in this chapter shall be conducted in compliance with State Finance and Procurement Article, Title 9, Annotated Code of Maryland, State Finance and Procurement Article, Division II, Annotated Code of Maryland, and the State procurement regulations in COMAR Title 21.

Regulation .02 Insurance Broker Services and Commercial Insurance Coverage.Copy Citation

A.
The State Treasurer may procure insurance broker services and insurance coverage from:
(1)
Insurance brokers licensed in the State of Maryland under Insurance Article, Title 10, Annotated Code of Maryland;
(2)
Direct writing insurance companies authorized to do business in the State of Maryland under Insurance Article, Title 4, Annotated Code of Maryland; or
(3)
Any other insurance-related program, plan, or provider that is authorized or permitted to do business in the State.
B.
The State Treasurer may procure commercial insurance coverage as required by federal law, State law, contract, or agreement or as needed to protect against any loss, damage, or liability that the State Treasurer, in the State Treasurer's sole discretion, considers appropriate to the interests of the State of Maryland;
C.
When the State Treasurer has determined to procure commercial insurance coverage and insurance broker services through insurance brokers, the State Treasurer shall competitively procure such insurance broker services in accordance with State Finance and Procurement Article, Division II, Annotated Code of Maryland, and COMAR Title 21 for the types of coverage and services specified in the solicitation.
D.
The State Treasurer shall select the insurance brokers that it considers most advantageous to the State.

Regulation .03 Procurement of Commercial Insurance Coverage Through Insurance Brokers.Copy Citation

A.
Quotes for Insurance Broker Services.
(1)
Following the award of a contract for insurance broker services, at the direction of the State Treasurer, the insurance broker shall request competitive quotes from insurance companies for the type and amounts of insurance coverage and services requested by the State Treasurer.
(2)
The insurance broker shall provide at least two competitive quotes for all requested commercial insurance coverage unless the insurance broker is unable to provide multiple quotes or, due to the nature of the coverage, market conditions, or otherwise, does not recommend obtaining multiple quotes.
(3)
If the insurance broker is unable to provide multiple quotes, the insurance broker shall provide to the State Treasurer documentation listing the insurance companies that decline to quote on coverage and explaining their decision not to quote on coverage. The State Treasurer shall review the documentation and direct the insurance broker how to proceed.
(4)
If the insurance broker does not recommend providing multiple quotes, the insurance broker shall provide to the State Treasurer written justification and a recommended course of action. The State Treasurer shall review the written justification and recommendation and direct the insurance broker how to proceed.
B.
The State Treasurer shall select the insurance coverage that it considers most advantageous to the State.

Regulation .04 Publication of Solicitations and Contract Awards.Copy Citation

A.
As required by the provisions of State Finance and Procurement Article, Division II, Annotated Code of Maryland, and COMAR, Title 21, specified solicitations and awards by the State Treasurer for the procurement of insurance broker services shall be published on eMaryland Marketplace. Such solicitations and awards shall also be published on the State Treasurer's website at www.treasurer.state.md.us.
B.
The publication of the State Treasurer's website of contract awards to insurance brokers shall invite insurance companies to contact the insurance brokers directly to provide quotes for insurance coverage.
C.
Information regarding commercial insurance policies obtained by the State Treasurer, including the types of coverage obtained and the premiums paid, shall be published on the State Treasurer's website and reported in accordance with COMAR 21.02.01.05C.