Sec. 11.18.02.03. Conditions for Certification as a Self-Insurer

A. An applicant for certification as a self-insurer shall:

(1) Provide the same benefits required by Transportation Article, Title 17, Annotated Code of Maryland, and by a political subdivision, regulatory agency, or commission which regulates the self-insurer;

(2) File an application for Maryland self-insurance annually accompanied by:

(a) A nonrefundable actuarial fee as set forth in COMAR 11.11.05;

(b) A security of a type and amount acceptable to the Administration;

(c) A listing of vehicles that includes for each vehicle the:

(i) Make;

(ii) Model;

(iii) Year;

(iv) Vehicle identification number;

(v) Tag number; and

(vi) Title number; and

(d) Reviewed financial statements for the past 3 years prepared by a certified public accountant;

(3) Own or lease 26 or more vehicles directly or by an association approved by the Administration;

(4) Open its books and records to the Administration for audit and inspection as requested during normal business hours;

(5) Notify the Administration within 30 days of any material changes in management or of substantial financial changes having a negative effect on the applicant's net worth;

(6) Comply with applicable fair claim settlement practice regulations as set forth by the Maryland Insurance Administration in COMAR 31.15.07.03;

(7) Comply with all applicable rules and regulations as set forth by the Public Service Commission or the local jurisdiction;

(8) Upon demand, furnish to the Administration an audit of claims and reserves prepared in accordance with generally accepted accounting practices by an independent auditing firm or by the Administration at the expense of the Administration;

(9) Notify the Administration within 21 days of any transfer of a vehicle being transferred in or out of the self-insurance program; and

(10) File with the Administration, on forms approved by the Administration, accurate information on the permit holder, vehicle owner, and association to which they belong for each vehicle in the self-insurance program.

B. A replacement or newly acquired vehicle, as those terms are defined in the industry, or a temporary substitute vehicle as defined in Regulation .02 of this chapter, shall automatically be covered under the self-insurance agreement.

C. Each self-insurance certification expires annually on January 31.