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 Amendment CA_A_H129 (House)
Amends: 24-A MRSA §3703

COMMITTEE AMENDMENT " tJ" to H.P. 639, L.D. 840, Bill, "An Act To 
Update the Authority of the Maine Employers' Mutual Insurance Company To Better 
Serve the Needs of Maine Employers" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 24-A MRSA §3703, suh-§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 for employers with an average of 100 or fewer 
employees if the employment practices liability insurance is provided as an endorsement 
to workers' compensation coverage approved by the superintendent and is provided under 
terms and conditions, including reinsurance protection, approved by the superintendent. 
Rates for employment practices liability insurance are subject to chapter 25. 
The 
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 aOO, 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 aOO, employers' liability insurance and 
employment practices liability insurance as long as such coverage is incidental to and 
written in connection with workers' compensation coverage. 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 
COMMITTEE AMENDMENT 
",.,. 
COMMITTEE AMENDMENT" A" to H.P. 639, L.D. 840 
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. 
Sec. 2. Report. On or before March 1,2008, the Superintendent of Insurance shall 
submit a report to the Joint Standing Committee on Insurance and Financial Services on 
whether the superintendent has approved the sale of employment practices liability 
insurance as an endorsement to workers' compensation insurance policies by the Maine 
Employers' Mutual Insurance Company pursuant to the Maine Revised Statutes, Title 
24-A, section 3703, subsection 1. The report must include, at a minimum, information on 
the terms and conditions of the approval and the number of employers who have chosen 
to purchase coverage for employment practices liability insurance. 
The report may 
include recommendations for any necessary legislation. The Joint Standing Committee on 
Insurance and Financial Services may submit legislation based on the superintendent's 
report to the Second Regular Session of the 123rd Legislature.' 
SUMMARY 
This amendment replaces the bill. The amendment permits the Maine Employers' 
Mutual Insurance Company to offer employers with an average of 100 or fewer 
employees employment practices liability insurance as an endorsement to workers' 
compensation coverage under terms and conditions approved by the Superintendent of 
Insurance. The amendment requires the Superintendent of Insurance to submit a report by 
March 1, 2008 on whether the superintendent has approved the coverage, the terms and 
conditions required for offering the coverage and the number of employers who have 
purchased the coverage. 
The Joint Standing Committee on Insurance and Financial 
Services is authorized to submit legislation based on the report to the Second Regular 
Session of the 123rd Legislature. 
The amendment retains the provisions in the bill that permits a subsidiary of the 
Maine Employers' Mutual Insurance Company to write coverage in Maine if the coverage 
is incidental to and written in connection with coverage in the state in which the insured's 
principal place of business is located. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 04/07/07 Mac:.. 
LD840 
LR 1287(02) 
An Act To Update the Authority of the Maine Employers' Mutual Insurance Company To Better 
Serve the Needs of Maine Employers 
Fiscal Detail and Notes 
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 Bureau of Insurance in the Department of Professional and Financial Regulation can be 
absorbed by the bureau utilizing existing budget resources. 
LR1287(02) - Fiscal Note - Page 1 of 1