An Act To Update the Authority of the Maine Employers' Mutual Insurance Company To Better Serve the Needs of Maine Employers
Maine Legislature, Session 123, LD 0840
Committee: Insurance and Financial Services
Sponsors: BRAUTIGAM, SULLIVAN, HOLMAN, PRIEST
Amends: 24-A MRSA §3703

Legislative Document 
No. 840 
H.P.639 
House of Representatives, February 23, 2007 
An Act To Update the Authority of the Maine Employers' Mutual 
Insurance Company To Better Serve the Needs of Maine Employers 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
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MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative BRAUTIGAM of Falmouth. 
Cosponsored by Senator SULLIVAN of York and 
Representatives: HOLMAN of Fayette, PRIEST of Brunswick. 
Printed on rt:c) ded paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA §3703, sub-§l, as amended by PL 1997, c. 661, §3, IS 
further amended to read: 
1. 
Workers' compensation. The company shall provide workers' compensation 
insurance and employers' liability insurance incidental to and written in connection with 
workers' compensation coverage to employers in this State. The company may provide 
employment practices liability insurance incidental to and written in connection with 
workers' compensation coverage on a form approved by the superintendent and under 
terms and conditions, including reinsurance protection, approved by the superintendent. 
Rates for employment practices liability insurance are subject to chapter 25. 
The 
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company may not write other lines of insurance. 
The company may reinsure workers' 
compensation and employers' liability insurance written by other insurers that are 
covering out-of-state employees of Maine-based employers that are insured by the 
company. For the purpose of providing insurance to Maine-based employers operating in 
other states, the company may apply to appropriate regulatory authorities in those states 
for authority to write workers' compensation aM, employers' liability and employment 
practices liability insurance for Maine-based employers' operations in those states. 
The 
company may form or acquire subsidiary insurers in other states that are authorized to 
write only workers' compensation insurance aM, employers' liability insurance and 
employment practices liability insurance. The superintendent may authorize a subsidiary 
insurer formed or acquired by the company to write workers' compensation, employers' 
liability and employment practices liability insurance in this State as long as such 
coverage is incidental to and written in connection with coverage in the state in which the 
insured's principal place of business is located. The superintendent may not authorize a 
subsidiary insurer formed or acquired by the company to write any other line of insurance 
in this State. 
SUMMARY 
This bill permits the Superintendent of Insurance to determine whether, and on what 
conditions, the Maine Employers' Mutual Insurance Company, or "MEMIC," may offer 
employment practices liability insurance as part of the workers' compensation policy it 
I 
issues to Maine employers. The terms and conditions of the coverage, including terms of 
reinsurance necessary to protect MEMIC and its policyholders, must be approved by the 
superintendent.