An Act to Amend the Laws Affecting Insurance
Sponsored By: Richard A. Bennett (Independent)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 6 benefits, 3 costs, 2 mixed.
Ban on disability bias in insurance
Insurers cannot deny, refuse, cancel, or change your insurance just because you have a physical or mental disability. This protects applicants and insured people from unfair treatment.
Clear warnings and timelines for surplus lines
When you apply for surplus lines insurance, the producer must give you a bold 16‑point notice. You must sign and date it, and you get a copy with your policy. They must keep your signed notice for 5 years. If the producer collected your premium, the nonadmitted insurer is liable for covered losses and unearned premium, and terms that try to avoid this are void. You must receive nonrenewal notice 30 days before expiration, cancellation for nonpayment 10 days before, and other cancellations 14 days before (20 days if another rule requires). A postal certificate proves you got the notice on the 5th day after mailing.
Stronger help when insurers go broke
Some claims on policies that were later transferred or assumed count as covered claims if strict conditions are met. The guaranty association can hire staff and contractors to handle claims and deliver benefits. If an insurer in liquidation is not clearly solvent, the court holds a hearing and must declare it insolvent. These steps help move claims faster and protect eligible claimants.
Cyber insurance defined, but payouts capped
The law defines cybersecurity insurance and clarifies that some cyber coverages belong in those policies, not in service‑contract insurance. If an insurer becomes insolvent, all covered claims from one cyber event that go through the guaranty system are capped at $500,000 total, no matter how many claimants. This cap can lower what each person or business recovers after a large event.
Insurers can use group health data
Insurers may request health information about people in a group plan when it is relevant to set the group’s rates. This can change premiums or coverage terms for employees.
Faster notice of vendor data breaches
By January 1, 2027, insurers must require their vendors to promptly tell them about cyber events that could materially harm consumers or operations. The insurer’s legal deadlines start the day after the vendor alerts them or the day after the insurer learns of the event, whichever is sooner. The law defines “ancillary service provider” so these duties also reach subcontractors that handle nonpublic information. Parties may still agree on how to coordinate investigation and notices.
No cost-sharing for screening mammograms
You pay no copay, coinsurance, or deductible for a screening mammogram covered by a nonprofit hospital and medical care service organization. This applies when the screening follows the law’s standards. It does not apply to an individual high‑deductible plan paired with an HSA unless the IRS allows it.
Tougher enforcement and reporting for insurers
The superintendent can ask courts to stop illegal control deals, undo unlawful transactions, and start delinquency cases. Securities bought in violation cannot be voted or counted for quorum. Violations can bring civil penalties under section 12‑A, including for each day they continue. Insurers must file full NAIC data and signed statements; confidential NAIC data stays confidential unless needed for a hearing or a court order. The law also deletes a prior subparagraph in these enforcement rules.
Higher fees for self‑insured employers
The fee for self‑insurance authorization is $400. Each annual continuation also costs $400. This was previously $300. Your total equals $400 times the number of authorizations or continuations.
Health appeals final, dispute records private
An external review decision is binding on the insurer. You cannot request another external review of the same treatment decision. The decision is not treated as final agency action. Records about independent dispute resolution requests and proceedings are confidential, except where the law allows release.
Tighter limits on surplus‑lines use
Surplus‑lines rules apply only when Maine is your home state. Employers must buy workers’ compensation from authorized insurers; it cannot be placed in surplus lines. The surplus‑lines chapter does not block reinsurance cessions or assumptions that are otherwise allowed. The law also updates terms to say “nonadmitted” insurer and “producer.”
Sponsors & Cosponsors
Sponsor
Richard A. Bennett
Independent • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Signed by Governor, ACTPUB Chapter 348
6/17/2025
Bill Text
Amendment S-A (S-278), adopted by House & Senate
Enacted
Introduced
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