Md. Code Regs. 11.18.02.05

Current through Register Vol. 51, No. 22, November 1, 2024

Section 11.18.02.05 - Grounds for Denial, Suspension, or Revocation

The self-insurance certificate of any self-insured may be suspended, cancelled, denied, or not renewed, after reasonable notice and opportunity to be heard, for the following reasons:

A. Failing to maintain:

(1) The security or bond required by the Administration,

(2) The dedicated claim reserve fund as established in Regulation .04 of this chapter,

(3) An adequate dollar reserve fund for open claims, or

(4) The information as set forth in the application and sworn to by the applicants;

B. Committing an unfair claim settlement practice as set forth in COMAR 31.15.07.03E, when relevant and applicable as determined by the Administration;

C. Failing to:

(1) Make claim files available for inspection by authorized Administration personnel under Regulation .03A(4) of this chapter,

(2) Release information regarding open or closed claims to an authorized representative of the Administration,

(3) Respond to claimants and adjust claims in a timely manner, consistent with general automobile insurance industry standards,

(4) Cooperate in an audit or investigation conducted by Administration personnel during an audit of the self-insured's records or financial status, or

(5) Maintain proper proportional registration when applicable;

D. A determination by the Administration that the self-insured is financially insolvent or that the appropriate security levels have decreased to the point that the Administration determines there may be a diminishing level of protection afforded;

E. Knowingly allowing anyone to operate or to attempt to operate, or failing to take adequate precautions to reasonably limit access to operate, a vehicle insured under a self-insurance program in an unlawful manner or by a person not qualified to do so under the laws of Maryland.

Md. Code Regs. 11.18.02.05

Regulation .05 adopted effective October 31, 1988 (15:22 Md. R. 2558)
Regulation .05A amended effective January 1, 1992 (18:25 Md. R. 2756)
Regulations .05 adopted effective February 27, 1995 (22:4 Md. R. 237)