An Act Limiting Recovery of Disability Benefits Subject to Offsets
Maine Legislature, Session 122, LD 0408
Committee Amendment CA_A_S23 (Senate)

COMMITTEE AMENDMENT ,A" to S.P. 132, L.D. 408, Bill, "An 
Act Limiting Recovery of Disability Benefits Subject to Offsets" 
Amend 
the bill 
in 
section 
"§2717-A." in subsection 2 in the 
line (page 1, line 23 in L.D.) by 
"10%" and inserting in its place the 
in that part 
designated 
first paragraph in the last 
striking out the following: 
following: '20°,,' 
Further amend the bill in section 1 in that part designated 
"§2717-A." in subsection 2 in paragraph A in the first line (page 
1, line 25 in L.D.) by striking out the following: 
"~" and 
inserting in its place the following: 
'For policies applied for 
after September 13, 2003, the' 
Further amend the bill in section 1 in that part designated 
"§2717-A." in subsection 2 in paragraph B in the 2nd line (page 
1, line 29 in L.D.) by inserting after the following: "insurer" 
the follbwing: " 
or such later date as the insurer begins paying 
benefits to the insured,' 
Further amend the bill in section 1 in that part designated 
"§2717-A." in subsection 2 by striking out all of paragraph D 
(page 1, lines 37 to 39 in L.D.) and inserting in its place the 
following: 
Page l-LR0446(2) 
COMMITfEE AMENDMENT 
I 
II! 
COMMITTEE AMENDMENT ,~" to S.P. 132, L.D. 408 
'D. 
The 
insurer 
provided 
the 
insured 
with 
clear 
and 
conspicuous written notice that accurately explains to the 
insured all types of other sources of income that may result 
in a 
reduction of the benefits payable under the policy 
within 30 days of the date a claim for disability benefits 
was filed.' 
Further amend the bill in section 2 in that part designated 
"§2829-A." in subsection 2 in the first paragraph in the last 
line (page 2, line 15 in L.D.) by striking out the following: 
"~" and inserting in its p1a~e the following: '20%' 
Further amend the bill in section 2 in that part designated 
"§2829-A." in subsection 2 in paragraph A in the first line (page 
2, line 17 in L.D.) by striking out the following: 
"The" and 
inserting in its place the following: 'For policies applied for 
after September 13, 2003, the' 
Further amend the bill in section 2 in that part designated 
"§2829-A." in subsection 2 in paragraph B in the 2nd line (page 
2, line 21 in L.D.) by inserting after the following: "insurer" 
the following: " 
or such later date as the insurer begins paying 
benefits to the insured,' 
Further amend the bill in section 2 in that part designated 
"§2829-A." in subsection 2 by striking out all of paragraph D 
(page 2, lines 29 to 31 in L.D.) and inserting in its place the 
following: 
'D. 
The 
insurer 
provided 
the 
insured with 
clear 
and 
conspicuous written notice that accurately explains to the 
insured all types of other sources of income that may result 
in a 
reduction of the benefits payable under the policy 
within 30 days of the date a claim for disability benefits 
was filed.' 
SUMMARY 
This 
amendment 
limits 
the 
rate 
at 
which 
an 
insurer's 
overpayment of disability income benefits may be recovered by the 
insurer through offsets to 20% against current payments to the 
insured. 
The bill limited the rate of recovery to 10%. 
The 
amendment also' clarifies that the disclosure requirements relate 
only to policies that were applied for after September 13, 2003. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/04/05 ~ae 
LD408 
LR0446(02) 
An Act Limiting Recovery of Disability Benefits Subject to Offsets 
Fiscal Note for Bill as Amended by Committee Amendment A 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Any additional costs to the Department of Professional and Financial Regulation incurred in implementing this bill 
can be absorbed utilizing existing resources. 
LR0446(2) - Fiscal Note - Page 1 of 1