2019 Maryland Code
Labor and Employment
Title 9 - Workers' Compensation
Subtitle 10 - Uninsured Employers
§ 9-1007. Assessment on awards and settlements
(a) (1) Except as provided in subsection (b) of this section, the Commission shall impose against an employer or, if insured, its insurer an assessment equal to 1% of:
(i) each award against the employer for permanent disability or death, including awards for disfigurement or mutilation; and
(ii) except as provided in paragraph (2) of this subsection, each amount payable by the employer or its insurer under a settlement agreement approved by the Commission.
(2) The amount of medical benefits specified in a formal set–aside allocation that is part of an approved settlement agreement shall be excluded from the assessment imposed by the Commission under paragraph (1)(ii) of this subsection if:
(i) 1. the amount of medical benefits is in excess of $50,000; and
2. the payment of medical benefits by the employer or its insurer is directly to an authorized insurer that provides periodic payments to the covered employee pursuant to a single premium annuity; or
(ii) 1. the amount of medical benefits is in any amount; and
2. the payment of medical benefits by the employer or its insurer is to an independent third–party administrator that controls and pays the medical services in accordance with the formal set–aside allocation, provided there is no reversionary interest to the covered employee or the covered employee’s beneficiaries.
(3) (i) Notwithstanding any other provision of law, if the employer is a corporation the assets of which are not sufficient to satisfy an assessment, any officer of the corporation who has responsibility for the general management of the corporation in the State is jointly and severally liable for the assessment if the corporate officer knowingly failed to secure workers’ compensation insurance.
(ii) Notwithstanding any other provision of law, if the employer is a limited liability company the assets of which are not sufficient to satisfy an assessment, any member of the limited liability company who has responsibility for the general management of the limited liability company in the State is jointly and severally liable for the assessment if a member of the limited liability company who has general management responsibility knowingly failed to secure workers’ compensation insurance.
(b) Notwithstanding the limit on the balance of the Fund under § 9–1011 of this subtitle, if the Board determines that the reserves of the Fund are inadequate to meet anticipated losses, the Board may direct the Commission to assess an additional 1% under subsection (a) of this section.
(c) Any fractional dollar of payment under this section shall be rounded off to the nearest whole dollar.
(d) The Commission shall direct payment of an assessment under subsection (a) or (b) of this section into the Fund.
(e) Payments under this section are in addition to the payment of compensation to a covered employee or the dependents of a covered employee under this title.