An Act to Amend the Laws Affecting Insurance
Sponsored By: Richard A. Bennett (Independent)
Became Law
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 2 benefits, 1 costs, 6 mixed.
Guaranty claims: new limits and support
First‑party claims are not covered if your aggregate net worth (including consolidated subsidiaries) was over $25,000,000 on December 31 of the year before the insurer failed. Return of unearned premium under a covered claim is capped at $25,000 per policy. The law clarifies how warranty and service‑contract insurance is treated for guaranty coverage. If solvency is unclear during liquidation, the court must adjudicate the insurer insolvent after notice and hearing. The guaranty association must keep enough staff or vendors to handle claims and provide covered benefits.
Cyber insurance defined and payout cap
The law defines cybersecurity insurance as coverage for losses tied to data breaches, hacks, ransomware, identity theft, and similar events. For any single insured cyber event, total covered payments under the policy or endorsement cannot exceed $500,000, no matter how many claims or claimants there are.
Stronger state enforcement of insurer control
The superintendent can go to court to get injunctions, undo illegal transactions, enforce orders, and start delinquency cases when there is probable cause. Civil penalties under section 12‑A now apply per violation and per day, replacing the old $100 forfeiture limit. The superintendent may use any or all listed remedies. Shares acquired in violation of control rules cannot be voted or counted for quorum. One subparagraph in the enforcement section is repealed.
New rules for surplus lines insurance
Producers must give a 16‑point notice that the insurer is nonadmitted and not backed by state guaranty funds, get it signed, send a copy at delivery, and keep it for 5 years. Producers may place coverage only with eligible insurers on the superintendent’s list and only when Maine is the home state. The law defines “nonadmitted insurance,” and foreign insurers are eligible if on the NAIC alien list. Policies are valid and enforceable, but producers can issue certificates only with written authority and must file a memorandum for each placement. Insurers must give 14 days’ notice to cancel (10 days for nonpayment) and 30 days’ notice to nonrenew; a postal certificate proves receipt on day five. Lawsuits go to Superior Court, and policies must name who can be served.
Workers’ comp cannot use surplus lines
You must buy workers’ compensation insurance from authorized in‑state insurers. You cannot place workers’ comp in the surplus lines market. The law still allows ceding or assuming reinsurance, including for workers’ comp self‑insurers.
Insurer data reporting and vendor privacy
Insurers that file annual statements must provide the NAIC the information needed for the IRIS system, execute the jurat, and certify compliance to the superintendent. NAIC‑held confidential information provided to the superintendent stays confidential except for hearings or court orders. Insurers under chapter 51 are excluded. NAIC officers are immune from civil liability except for bad faith, fraud, or intentional acts. The law also defines third‑party service providers that access nonpublic insurer information so vendor privacy rules clearly apply to them.
No cost-sharing for screening mammograms
You pay no cost‑sharing for a screening mammogram done by a nonprofit hospital or medical care service organization. This lowers your out‑of‑pocket cost. This rule does not apply to an individual HSA‑qualified high‑deductible plan if the IRS allows cost‑sharing for that plan.
Higher self-insurance fees for businesses
Applying for authority to self‑insure now costs a one‑time $500 filing fee. The annual authorization or continuation fee is $400 per year, up from $300. One paragraph in the self‑insurance rules is repealed; its exact effect depends on the former text.
Health plan appeals, privacy, and underwriting
An external review decision is binding on the carrier, and you cannot file another external review for the same treatment decision. Records from independent dispute resolution are confidential and not public. Insurers that offer group coverage can ask for evidence of a person’s insurability and health information to rate the group. The law bars insurance discrimination based only on blindness or a physical or mental disability.
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
ACTPUB Chapter 348
5/1/2026
Bill Text
Enacted
Introduced
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