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Update: Grassroots Success!
On the final day of the Maryland Legislature’s
session, a Conference Committee amended HB 980 and SB 881. The compromise --
made by Delegates Busch, Mitchell, and McClenahan
and Senators Bromwell, Della, and Hafer
-- was later adopted by the full House of Delegates
and Senate.
Maryland Senate Bill 881, "Injured Workers'
Insurance Fund - Regulation" (cross-filed with HB980) was signed into
law on Thursday May 18th by Governor Glendening. The new law will be known
as Chapter 567. Our sincere thanks to all who supported this
important initiative by participating in the process.
We believe the Grassroots support of our agents, web visitors, and
others helped forge a successful coalition among legislators who became
increasingly convinced of the need for meaningful Maryland Insurance
Administration (MIA) oversight. Below is a recap of the provisions of the
compromise that passed. The bill:
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Requires Injured Workers’ Insurance Fund (IWIF) to be examined in
accordance with the insurance article which applies to the examination
of insurers’ affairs, transactions, accounts, records and assets,
reserves, and reinsurance in order to ensure solvency.
-
Empowers the Commissioner to enforce provisions of the Maryland
Insurance Article related to “Impaired Entities” and the “Risk-Based
Capital Standard for Insurers.”
-
Allows the Commissioner to oversee the solvency of IWIF and thereby,
in our view, become involved in issues about appropriate pricing, though
certain enforcement actions pertaining to “Unfair Trade Practices”
and to the raising/setting of rates are disallowed. (In examining IWIF
for compliance with specified laws, the Commissioner has the charge of
reporting to the Board with recommendations for action.)
-
Requires the Commissioner to determine that IWIF meets certain
solvency standards before becoming a member of the Guaranty Fund.
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