An Act To Clarify the Authority of the Attorney General To Seek Restitution and To Require the Superintendent of Insurance To Investigate Certain Insurance Practices LR 1313(02) ,.. /
Maine Legislature, Session 121, LD 1347
Committee Amendment CA_A_S155 (Senate)
Amends: 24-A MRSA §214

COMMITTEE AMENDMENT "A" to S.P. 438, L.D. 
Act To Clarify the Authority of the Attorney 
Restitution and To Require the Superintendent 
Investigate Certain Insurance Practices" 
1347, Bill, "An 
General To Seek 
of Insurance To 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. I. 24-A MRSA §214, sub-§2, as amended by PL 1973, c. 
585, §12, is further amended to read: 
2. 
If the superintendent has reason to believe that any 
person has violated any provision of this Title, or of other law 
as 
applicable 
to 
insurance 
operations, 
for 
which 
criminal 
prosecution 
is 
provided 
and 
would 
be 
in 
order, 
ae 
the 
superintendent shall give the information relative thereto to the 
Attorney General. The Attorney General shall promptly institute 
such action or 
proceedings. 
including. 
but not 
limited to. 
actions or proceedings to seek restitution. against saea that 
person as in ais the Attorney's General's opinion the information 
may require or justify. 
Sec. 2. Report on insurance practices. 
The Superintendent of 
Insurance 
shall prepare 
a 
report that 
addresses 
the 
market 
conditions for property and casualty insurance in this State with 
a particular emphasis on homeowners' 
insurance and commercial 
insurance coverage for small businesses. 
1. 
At a minimum, the report must include: 
Page l-LRl313(2) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,~" to S.P. 438, L.D. 1347 
A. 
An assessment of recent market trends in those lines of 
insurance; 
B. 
The identification of problem areas or issues within the 
market for those lines of insurance 
and 
suggestions to 
address those areas or issues based on a review of other 
states' responses to similar issues; 
C. 
The identification of specific trends within those lines 
of insurance related to: 
(1) Changes in policy forms; 
(2) Underwriting and rating practices; 
(3) Nonrenewal and cancellation hearings held before 
the Bureau of Insurance; and 
(4) Complaints made to the Bureau of Insurance by type 
of insurance; 
D. 
The 
identification and 
review of 
factors 
that are 
influencing 
underwriting 
and 
rating 
practices 
used 
by 
insurers in this State for those lines of insurance; 
E. 
A summary of information gathered at public hearings; and 
F. 
A suggested framework for ongoing data collection and 
market analysis for those lines of insurance. 
2. 
In preparing the report, the Superintendent of Insurance 
shall use the following methodology. 
A. 
The superintendent shall conduct 4 public hearings in 
different locations throughout the State. 
The purpose of 
the hearings is to provide an overview of the insurance 
market in this State, to gather public comment on problems 
and issues related to property and casualty insurance and to 
provide 
information 
relating 
to 
consumer 
assistance 
available from the Bureau of Insurance. 
B. 
The superintendent may contract with outside consultants 
to assist with preparation of 
the 
report. 
If outside 
consultants are utilized, the costs must be absorbed within 
the Bureau of Insurance's existing budgeted resources. 
C. 
To the extent possible, the superintendent shall review 
and analyze requests made to the Bureau of Insurance in 
2001, 2002 and 2003 for cancellation and nonrenewal hearings 
pursuant to the Maine Insurance Code. 
COMMITTEE AMENDMENT 
\ 
COMMITTEE AMENDMENT "A" to S.P. 438, L.D. 1347 
3. 
The Superintendent of Insurance shall submit the report 
no later than January 5, 2004 to the Joint Standing Committee on 
Insurance and Financial Services. 
The committee may report out 
legislation 
to 
the 
Second 
Regular 
Session 
of 
the 
121st 
Legislature to address issues related to the market conditions 
for property and casualty insurance.' 
SUMMARY 
This amendment clarifies that, in those instances when the 
Superintendent of Insurance has notified the Attorney General of 
a 
violation of the insurance 
laws, 
the Attorney General is 
required to institute actions against the violator, including 
actions seeking restitution. 
This amendment also requires the superintendent to prepare a 
report on market conditions and trends for property and casualty 
insurance in this State, particularly homeowners' insurance and 
commercial coverage for small businesses. 
The superintendent is 
required to hold 4 public hearings throughout the State. 
The 
amendment requires the superintendent to submit the report to the 
Joint Standing Committee on Insurance and Financial Services no 
later than January 5, 2004. 
FISCAL '\OTE REQlIRED 
(See attached) 
Page l-LRI313(2) 
COMMITTEE AMENDMENT 
Approved: 05/09/03 ,;tpaC'-
l2lst Maine Legislature 
Office of Fiscal and Program Review 
LD 1347 
An Act To Clarify the Authority of the Attorney General To Seek 
Restitution and To Require the Superintendent of Insurance To 
Investigate Certain Insurance Practices 
LR 1313(02) 
,.. /'
Fiscal Note for Bill as Amended by Committee Amendment rf',S-f:J':J 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
LR1313(2) - Fiscal Note - Page 1 of 1