Md. Code Regs. 14.09.14.01 - Definitions
A. For the purposes
of this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Actuarially calculated ultimate loss
liability" means the sum of open claim reserves plus an estimate of incurred
but not reported losses on open and closed claims through the cutoff date for
the estimate in accordance with generally accepted actuarial
principles.
(2) "Adequate
consideration" has the meaning set forth in the Employee Retirement Income
Security Act of 1974 (ERISA),
29 U.S.C. §
1108(17)(B).
(3) "Administrator" means a person or entity
designated by the Board of Trustees for a purpose authorized by this
regulation.
(4) "Board of Trustees"
means the elected governing body of a governmental group self-insurance
fund.
(5) "Elect" means either:
(a) Direct election by the members of the
governmental group fund;
(b)
Appointment by the Board of Directors of a governmental entity member
organization; or
(c) Appointment by
the Board of Directors of the governmental group or sponsoring
organization.
(6)
"Exchange traded fund" or "ETF" means an equity fund or bond fund designed to
replicate the performance of a major broad market United States, international,
or global index and publicly traded on an American Stock Exchange.
(7) "Fiduciary" means:
(a) An individual or group of individuals as
defined in the Employee Retirement Income Security Act of 1974 (ERISA),
29 U.S.C. §
1102(21)(A);
(b) A member of the Board of
Trustees;
(c) A member of an
investment committee of the Board of Trustees; and
(d) An administrator.
(8) "Fiscal agent" means the entity employed
by the Board of Trustees to hold the monies of the Fund.
(9) "Fund" means the governmental
self-insurance group fund established pursuant to Labor and Employment Article,
§
9-404, Annotated
Code of Maryland, and this chapter.
(10) "Party in interest" means:
(a) An administrator;
(b) A fiduciary;
(c) A member of the Fund, any of whose
employees are covered by the Fund;
(d) A service company;
(e) A trustee;
(f) A fiscal agent;
(g) A spouse, ancestor, lineal descendent, or
spouse of a lineal descendent of a person set forth in §B(10)(a) " (f) of
this regulation;
(h) A corporation,
partnership, trust or estate of which 50 percent is owned directly or
indirectly by a person set forth in §B(9)(a) " (f) of this
regulation;
(i) An employee,
officer, director or 10 percent or more shareholder of an entity or person set
forth in §B(10)(a) " (f) of this regulation; and
(j) A 10 percent or more partner or joint
venturer of an entity or person set forth in §B(10)(a) " (f) of this
regulation.
(11) "SEC"
means the United States Securities and Exchange Commission.
(12) "Service company" means an organization,
company, or person hired to perform a function of the Fund's day-to-day
operations including, but not limited to:
(a)
Adjusting claims;
(b) Performing
safety engineering;
(c) Compiling
statistics and preparing premium, loss, and tax reports;
(d) Preparing other required fund
reports;
(e) Developing members'
premiums and fees;
(f) Managing the
investment of all or part of the Fund's assets; and
(g) Providing advisory services, including
advice on investment objectives, asset allocation, manager search, and
performance monitoring.
(13) "Sponsoring organization" means the
governmental group that has been approved for joint self-insurance coverage
under Labor and Employment Article, §
9-404, Annotated
Code of Maryland.
(14) "Surplus
monies not needed to meet current obligations (surplus monies)" means monies
not needed to pay current Fund:
(a)
Expenses;
(b)
Obligations;
(c) Open claim
reserves; and
(d) Incurred, but not
reported, claim reserves.
Notes
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