Maine LD 1875: An Act To Amend The Maine Life And Health Insurance Guaranty Association Act

Bill Text

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 SP0718, LD 1875, item 1, 
 An Act To Amend the Maine Life and Health Insurance Guaranty Association Act

 SP0718
LD 1875
 Session - 128th Maine Legislature 

 LR 2896
Item 1

 Bill Tracking, Additional Documents
 Chamber Status

 An Act To Amend the Maine Life and Health Insurance Guaranty Association Act

 Be it enacted by the People of the State of Maine as follows:

 Sec. 1. 24-A MRSA §4386, sub-§1, as enacted by PL 1981, c. 347, is amended to read:1. Insolvency; assets disbursed. Within 120 days of after a final determination of insolvency of a company by a court of competent jurisdiction of this State, the receiver shall make application to the court for approval of a proposal to disburse assets out of the company's marshaled assets, from time to time as those assets become available, to the Maine Insurance Guaranty Association , to the Maine Life and Health Insurance Guaranty Association and to any similar organization in another state. The Maine Insurance Guaranty Association , the Maine Life and Health Insurance Guaranty Association and any similar organizations in other states shall be are referred to, collectively, as the associations.

 Sec. 2. 24-A MRSA §4603, sub-§1, as amended by PL 2005, c. 346, §2 and affected by §16, is further amended to read:1. Application. This chapter applies to direct nongroup life insurance policies, health insurance policies, annuity contracts and contracts supplemental to life and health insurance policies and annuity contracts and to certificates under direct group life insurance policies, health insurance policies and annuity contracts, except as limited by this chapter. For the purposes of this chapter , annuity contracts and certificates under group annuity contracts include allocated funding agreements, structured settlement annuities and any immediate or deferred annuity contracts. : A. Health insurance policies include individual and group health maintenance organization enrollment contracts, and health maintenance organizations are considered to be health insurers;

 B. Annuity contracts and certificates under group annuity contracts include allocated funding agreements, structured settlement annuities and any immediate or deferred annuity contracts; and

 C. Benefits provided by a long-term care rider to a life insurance policy or annuity contract are considered the same type of benefits as the base life insurance policy or annuity contract to which the rider relates.

 Sec. 3. 24-A MRSA §4603, sub-§1-A, as amended by PL 2005, c. 346, §2 and affected by §16, is further amended to read:1-A. Persons covered. This chapter provides coverage for the policies and contracts specified in subsection 1:A. To any person, regardless of where the person resides, except for a nonresident certificate holder under a group policy or contract, who is the beneficiary, assignee or payee , including a health care provider rendering services covered under a health insurance policy or certificate, of a person covered under paragraph B;

 B. To any person who owns, or is a certificate holder or enrollee under, a policy or contract specified in subsection 1, other than a structured settlement annuity, who:
 (1) Is a resident; or

 (2) Is not a resident, if all the following conditions are met:

 (a) The insurer that issued the policy or contract is domiciled in this State;

 (b) The insurer never held a license or certificate of authority in the state in which the person resides;

 (c) The state in which the person resides has an association similar to the Maine Life and Health Insurance Guaranty Association; and

 (d) The person is not eligible for coverage by the association in that state; and

 C. To any person who is a payee under a structured settlement annuity, or to a beneficiary or beneficiaries of a payee if the payee is deceased, if the payee:
 (1) Is a resident, regardless of where the contract owner resides; or

 (2) Is not a resident, if all of the conditions of either division (a) or (b) are met:

 (a) The contract owner of the structured settlement annuity is a resident; or

 (b) The contract owner of the structured settlement annuity is not a resident, but:

 (i) The insurer that issued the structured settlement annuity is domiciled in this State;

 (ii) The state in which the contract owner resides has an association similar to the association created by this chapter; and

 (iii) The payee or beneficiary and the contract owner are not eligible for coverage by the association of the state in which the payee or contract owner resides.

 This chapter does not provide coverage to a person who is a payee or beneficiary of a contract owner who is a resident of this State if the payee or beneficiary is afforded any coverage by a similar association of another state.

 This chapter is intended to provide coverage to a person who is a resident, and, in special circumstances as provided by this section, to a person who is not a resident. In order to avoid duplica