Maryland Labor and Employment Section 10-130

      (a)      The Board shall adopt, by regulation, a schedule of premium rates, as provided in this section.

      (b)      (1)      The Board shall determine the schedule by:

                  (i)      classifying all of the policyholders on the basis of the respective level of hazard of their enterprises; and

                  (ii)      setting a premium rate for each class on the basis of:

                        1.      its level of hazard; and

                        2.      incentives to prevent injuries to employees.

            (2)      To determine the schedule, the Board shall use the rating system that, in the opinion of the Board:

                  (i)      most accurately measures the level of hazard for each policyholder on the basis of the number of injuries that occur in the enterprises of the policyholder;

                  (ii)      encourages the prevention of injuries; and

                  (iii)      ensures the solvency of the Fund from year to year.

            (3)      The Board may set minimum premium rates.

      (c)      (1)      The Board shall state premium rates as a percentage of the gross annual wages of employees to whom Title 9 of this article applies.

            (2)      For employees who work partly in and partly outside the State, the premium shall be based on wages for employment in the State.

      (d)      (1)      Except as provided in paragraph (2) of this subsection, the schedule of premium rates in effect at the beginning of a calendar year remains in effect for the year.

            (2)      The Board shall adjust classes and rates as often as the Board determines to be just and advantageous to meet the criteria under subsection (b)(2) of this section and to reflect changes in levels of hazards.

      (e)      (1)      Except as provided in paragraph (2) of this subsection, the Board may not increase the policy rate of an employer on renewal of a policy by more than 20% unless the Board notifies the employer in writing at least 45 days before the effective date of the policy rate increase.

            (2)      This subsection does not apply to an increase based on the experience of the employer.