An Act To Expand the Mission of the Public Advocate
Maine Legislature, Session 121, LD 1051
Committee: Insurance and Financial Services
Sponsors: BLISS, BROMLEY, CUMMINGS, DUDLEY, HUTTON
Amends: 24-A MRSA §2382-C

Legislative Document 
No.IOSI 
H.P.768 
House of Representatives, February 26, 2003 
An Act To Expand the Mission of the Public Advocate 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative BLISS of South Portland. 
Cosponsored by Senator BROMLEY of Cumberland and 
17/~ 
/J7.1JJt;c~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CUMMINGS of Portland, DUDLEY of Portland, HUTTON of Bowdoinham. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.!. 24-A MRSA c. 4 is enacted to read: 
CHAPTER 4 
PROTECTION OF CORSUMERS 
§30l. 
Duties of Public Advocate to insurance consumers 
In addition to those duties specified in section 2387-A, the 
duties 
and 
responsibilities 
of 
the 
Public 
Advocate 
include 
representing public consumers of insurance services and products 
within the jurisdiction of the bureau. 
§302. 
Review and recommendations 
The 
Public 
Advocate 
may 
review, 
investigate 
and 
make 
appropriate 
recommendations 
to 
the 
superintendent 
regarding 
aspects of the insurance industry, including, but not limited to: 
1. 
Rates. 
The reasonableness of rates charged or proposed 
to be charged by any insurer; 
2. 
Service. 
The reasonableness and adeguacy of the service 
furnished or proposed to be furnished by any insurer; 
3. 
Reduction or abandonment. 
Any proposal by an insurer to 
reduce or abandon service to the public; 
4. 
Terms and conditions. 
Terms and conditions of insurers~ 
5. 
Mergers and consolidations. 
Mergers and consolidations 
of insurers; 
6. 
Contracts. 
Contracts 
of 
insurers' 
affiliates 
or 
subsidiaries; and 
1. 
Transactions. 
Securities, regulations and transactions 
of insurers. 
§303. 
Intervention 
The Public Advocate may intervene in any proceeding before 
the bureau related to the activities under section 
when 
determined necessary by the Public Advocate. 
§304. 
Petition to initiate proceedings 
The Public Advocate may petition the bureau to initiate 
proceedings to review , 
investigate and take appropriate action 
with 
respect 
to 
the 
rates 
or 
service of 
any 
insurer 
when 
determined necessary by the Public Advocate. 
§305. 
Public complaints 
The Public Advocate may investigate complaints affecting the 
consumers 
of 
insurance 
generally, 
or 
particular 
groups 
of 
consumers, 
and 
when 
appropriate 
make 
recommendations 
to 
the 
bureau with respect to these complaints. 
§306. 
Intervention on behalf of public 
The Public Advocate may, on behalf of the public consumers 
of insurance services and products or any particular group of 
consumers, petition to initiate or intervene and appear in any 
proceedings 
before 
the 
bureau, 
appeals 
from 
orders 
of 
the 
superintendent or bureau or proceedings before state and federal 
agencies and courts in which the subject matter of the action 
affects the customers of any insurer doing business in this 
State, except that the Public Advocate may not intervene in any 
proceeding in which the bureau staff is representing a position 
substantially 
similar 
to 
that 
of 
the 
Public 
Advocate, 
as 
determined by the Public Advocate. 
§307. 
Annual report 
The 
Public 
Advocate 
shall prepare 
and 
submit 
an 
annual 
report of activities of the Public Advocate to the Governor and 
to 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction over insurance matters by August 1st of each year, 
with copies available to all Legislators on re~uest. 
Sec. 2. 24-A MRSA §2382-C. sub-§7 is enacted to read: 
1. 
Rate change filing fee. 
An insurer filing for a rate 
change under this chapter, in addition to any other fee specified 
in this Title, shall pay to the superintendent at the time of 
filing 
a 
filing 
fee 
of 
$50,000, 
which 
the 
superintendent 
immediately shall credit to the Public Advocate. 
The fee must be 
segregated and expended for the purposes specified in chapter 4. 
Any portion of the fee not expended for that purpose must be 
returned to the insurer. 
SUMMARY 
This bill expands 
the duties 
include oversight of 
the 
insurance 
of the Public 
industry by 
Advocate 
allowing 
to 
the 
Public 
Advocate 
to 
review 
and 
make 
recommendations 
to 
the 
Superintendent of Insurance regarding insurance rates, policies 
and availability of products to Maine 
consumers. 
The 
Public 
Advocate also may intervene on behalf of a consumer or group of 
consumers of insurance products in any action before the Bureau 
of Insurance, other state or federal agencies or courts. 
This bill also imposes a filing fee of $50,000 on an insurer 
who files for a rate change to workers' compensation insurance or 
employers' 
liability 
insurance 
written 
in 
connection 
with 
workers' 
compensation insurance. 
The fee is dedicated to the 
Public Advocate to fund the expanded duties as proposed in this 
bill.