Maine Legislature, Session 122, LD 0541
Committee Amendment CA_A_S105 (Senate)
Amends: 24-A MRSA §2912, 24-A MRSA §2915, 24-A MRSA §3007, 24-A MRSA §30, 24-A MRSA §3051

COMMITTEE AMENDMENT "A" to S.P. 167, L.D. 541, Bill, "An 
Act To Amend the Laws Related to Cancellation and Nonrenewal of 
Insurance" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 24-A MRSA §2912, sub-§2, as amended by PL 1977, c. 
403, §1, is further amended to read: 
2. 
Renewal or renew. 
"Renewal" or "to renew" means the 
issuance and delivery by an insurer of a policy replacing at the 
end of the previous policy term a policy previously issued and 
delivered by the same insurer, or the issuance and delivery of a 
certificate or notice extending the coverage of the policy beyond 
its original term. Any renewal policy, other than a replacement 
policy for an unfinished term, with a term of one year or less 
saall--se is 
considered written, 
for 
the 
purposes 
of 
this 
subchapter, 
for 
a 
term of 
one year. 
For 
purposes of this 
subchapter, 
the transfer of a 
policy from 
an insurer to an 
affiliate is considered a policy renewal. 
Any policy written for a term longer than one year or with no 
fixed 
expiration 
date 
saall--se 
is 
considered 
written 
for 
successive policy terms of one year. 
Sec. 2. 24-A MRSA §2915, as amended by PL 1989, c. 172, §4, 
is further amended to read: 
§29l5. Delivery of notice 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 167, L.D. 541 
Ne A notice of cancellation of a policy sha-l-l--:ge is not 
effective unless received by the named insured at least 20 days 
prior 
to 
the effective date of cancellation, 
or, 
when 
the 
cancellation is for nonpayment of premium, at least 10 days prior 
to the effective date of cancellation. In the event the policy is 
an automobile physical damage policy, like notice of cancellation 
saa;!,;!, I!m1it also be given to any other person mentioned in the 
loss payable clause. A postal service certificate of mailing to 
the named insured at the insured's last known address saaJ,;!,-ae ~ 
conclusive proof of receipt on the 5th calendar day after mailing. 
Except for a policy waiea ~ 
has been in effect for less 
than 60 days at the time notice of cancellation is received by 
the 
named 
insured, 
the 
reason 
for 
cancellation 
saa;!,;!, 
I!m1it 
accompany the notice, together with a notice of the right to 
apply for a hearing before the Superintendent of Insurance within 
days, as provided in section 2920. 
Prior to the date of renewal of a policy that has been 
transferred by an insurer to an affiliate. the insured must 
receive notice of any changes to the terms of the policy that are 
less favorable to the insured. 
Sec. 3. 24-A MRSA §3007, sub-§l, 1[E, as enacted by PL 1985, c. 
671, §2, is amended to read: 
E. 
"Renewal" or "to renew" means the issuance of, or the 
offer to issue by an insurer or an affiliate of an insurer, 
a policy succeeding a policy previously issued and delivered 
by the same insurer or an affiliated insurer or the issuance 
of 
a 
certificate or 
notice 
extending 
the 
terms 
of 
an 
existing policy for a specified period beyond its expiration 
date. 
For purposes of this section. 
the transfer of a 
policy from 
an insurer to an affiliate is considered a 
policy renewal. 
Sec. 4. 24-A MRSA §3007, sub-§S, 1[B, as enacted by PL 1985, c. 
671, §2, is amended to read: 
B. 
Nonrenewal subject to this section saa;!,;!, is not :ge 
effective prior to 30 days after receipt of notice written 
by the insured. 
Prior to the date of renewal of a policy 
that has been transferred by an insurer to an affiliate. the 
insured must receive notice of any changes to the terms of 
the policy that are less favorable to the insured. 
Sec. S. 24-A MRSA §30S0, as amended by PL 1989, c. 172, § 7 , 
is further amended to read: 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to S.P. 167, L.D. 541 
§3050. De1ivery of notice 
We h notice of cancellation of a policy saa-l-l--ae is not 
effective unless received by the named insured at least 20 days 
prior to 
the effective date 
of 
cancellation, 
or, 
when 
the 
cancellation is for nonpayment of premium, at least 10 days prior 
to 
the 
effective 
date 
of 
cancellation. 
A 
postal 
service 
certificate of mailing to the named insured at the insured's last 
known address 
saa~~-ae iA conclusive proof of receipt on the 5th 
calendar day after mailing. 
Except for a policy wa~ea ~ 
has been in effect for less 
than 60 days at the time notice of cancellation is received by 
the 
named 
insured, 
the 
reason 
for 
cancellation saall ~ 
accompany the notice, together with a notice of the right to 
apply for a hearing before the Superintendent of Insurance within 
days, as provided in section 3054. 
Prior to the date of renewal of a policy that has been 
transferred by an insurer to an affiliate, the insured must 
receive notice of any changes to the terms of the policy that are 
less favorable to the insured. 
Sec. 6. 24-A MRSA §3051, sub-§l, as amended by PL 2003, c. 
671, Pt. A, §8, is further amended to read: 
1. 
If the insurer has manifested its willingness to renew; 
Sec. 7. 24-A MRSA §3051, sub-§2, as enacted by PL 1973, c. 
239, is amended to read: 
2. 
If the insured fails to pay any premium due or any 
advance premium required by the insurer for renewalTL-Q£ 
Sec.8. 24-A MRS A §3051, sub-§3 is enacted to read: 
3. 
If the insured has transferred a policy to an affiliate.' 
SUMMARY 
This amendment replaces the bill. 
The amendment removes the 
section of the bill relating to uninsured motorist coverage. 
The 
amendment clarifies that a transfer of a policy from an insurer 
to an affiliate is considered a renewal of a pOlicy. 
It also 
requires that an insured be given notice prior to renewal of any 
changes in terms that are less favorable to the insured under a 
policy that has been transferred to an affiliate. 
COMMITTEE AMENDMENT