# COMAR Title 25 — Office of the State Treasurer

## Subtitle 02 — State Insurance Programs

### Chapter 07 — Procurements of Insurance Broker Services and Commercial Insurance Policies

**Authority:** State Finance and Procurement Article, §§9-102—9-105 and 12-107, Annotated Code of Maryland

**Administrative History:** Effective date: February 22, 2010 (37:4 Md. R. 341)

#### Regulation .01 General.

*COMAR 25.02.07.01*

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.

*COMAR 25.02.07.02*

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.

*COMAR 25.02.07.03*

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.

*COMAR 25.02.07.04*

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.