Maryland Labor and Employment Section 10-133

Article - Labor and Employment

§ 10-133.

      (a)      The Board shall adopt regulations that provide procedures and standards for the payment of premiums.

      (b)      (1)      Subject to paragraph (2) of this subsection, the Board, the President of the Fund, or the Executive Vice President of the Fund may:

                  (i)      cancel the insurance of a policyholder who fails to pay a premium due to the Fund; and

                  (ii)      refer to the Attorney General, for collection, the debt of any policyholder whose insurance is being canceled under this paragraph.

            (2)      At least 10 days before the date set for cancellation of insurance under this subsection, the Board shall:

                  (i)      serve on the policyholder, by personal service or by certified or registered mail sent to the last known resident address of the policyholder, a notice of intention to cancel insurance; and

                  (ii)      submit a copy of the notice to the Workers' Compensation Commission's designee.

            (3)      Notice under this subsection may be given:

                  (i)      for a policyholder that is a corporation, to an official or other agent of the corporation on whom legal process may be served; and

                  (ii)      for a policyholder that is a partnership, to any partner.

            (4)      Notice under this subsection shall state the date on which the cancellation is to become effective.

            (5)      Whenever a debt is referred under this subsection for collection, the insurance may not be reinstated until the debt is paid in full.

      (c)      (1)      Whenever a debt is referred under this section for collection, the Board, the President of the Fund, or the Executive Vice President of the Fund shall provide the Attorney General with:

                  (i)      the name of the policyholder;

                  (ii)      each known business or resident address of the policyholder; and

                  (iii)      a statement of the amount that the policyholder owes to the Fund.

            (2)      The Attorney General may sue, in the name of the Fund, to collect the debt.

      (d)      If the President of the Fund considers settlement to be in the best interest of the Fund, a debt that is referred under this section for collection may be settled.



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