An Act To Protect Consumers in the Insurance Industry
Maine Legislature, Session 123, LD 1066
Committee: Insurance and Financial Services
Sponsors: BLISS, BARTLETT, CONOVER, CROCKETT, MIRAMANT, SIROIS, TRINWARD
Amends: 24-A MRSA §2382-C

Legislative Document 
No. 1066 
H.P.784 
House of Representatives, March 6, 2007 
An Act To Protect Consumers in the Insurance Industry 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative BLISS of South Portland. 
Cosponsored by Senator BARTLETT of Cumberland and 
'-77/~ 1h.7J7~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: CONOVER of Oakland, CROCKETT of Augusta, MIRAMANT of Camden, 
SIROIS of Tumer, TRINWARD of Waterville. 
Printed on recYl: led paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA c. 4 is enacted to read: 
CHAPTER 4 
PROTECTION OF CONSUMERS 
§301. Duties of Public Advocate to insurance consumers 
In addition to those duties specified in section 2387-A, the duties and responsibilities 
of the Public Advocate include representing public consumers of insurance services and 
products within the jurisdiction of the bureau. 
§302. Review and recommendations 
The 
Public 
Advocate 
may 
review, 
investigate 
and 
make 
appropriate 
recommendations to the superintendent regarding aspects of the insurance industry, 
including, but not limited to: 
1. Rates. The reasonableness of rates charged or proposed to be charged by any 
Insurer; 
2. Service. The reasonableness and adequacy of the service furnished or proposed to 
be furnished by any insurer; 
3. Reduction or abandonment. Any proposal by an insurer to reduce or abandon 
service to the public; 
4. Terms and conditions. Terms and conditions of insurers; 
5. Mereers and consolidations. Mergers and consolidations of insurers; 
6. Contracts. Contracts of insurers' affiliates or subsidiaries; and 
7. Transactions. Securities, regulations and transactions of insurers. 
§303. Intervention 
The Public Advocate may intervene in any proceeding before the bureau related to 
the activities under section 302 when determined necessary by the Public Advocate. 
§304. Petition to initiate proceedines 
The Public Advocate may petition the bureau to initiate proceedings to review, 
investigate and take appropriate action with respect to the rates or service of any insurer 
when determined necessary by the Public Advocate. 
Page I - 123LR1l61(Ol)-1 
§305. Public complaints 
The Public Advocate may investigate complaints affecting the consumers of 
insurance generally, or particular groups of consumers, and when appropriate make 
recommendations to the bureau with respect to these complaints. 
§306. Intervention on behalf of public 
The Public Advocate may, on behalf of the public consumers of insurance services 
and products or any particular group of consumers, petition to initiate or intervene and 
appear in any proceedings before the bureau, appeals from orders of the superintendent or 
bureau or proceedings before state and federal agencies and courts in which the subject 
matter of the action affects the customers of any insurer doing business in this State, 
except that the Public Advocate may not intervene in any proceeding in which the bureau 
staff is representing a position substantially similar to that of the Public Advocate, as 
determined by the Public Advocate. 
§307. Annual report 
The Public Advocate shall prepare and submit an annual report of activities of the 
Public Advocate pursuant to this chapter to the Governor and to the joint standing 
committee of the Legislature having jurisdiction over insurance matters by August 1 st of 
each year, with copies available to all Legislators on request. 
Sec. 2. 24-A MRSA §2382-C, sub-§7 is enacted to read: 
7. Rate chanee filing fee. An insurer filing for a rate change under this chapter, in 
addition to any other fee specified in this Title, shall pay to the superintendent at the time 
of filing a filing fee of $50,000, which the superintendent immediately shall credit to the 
Public Advocate. The Public Advocate shall segregate the funds received pursuant to this 
subsection and expend those funds for the purposes specified in chapter 4. Any portion 
of the fee not expended for that purpose must be returned to the insurer. 
SUMMARY 
This bill expands the duties of the public advocate to include oversight of the 
insurance 
industry 
by 
allowing the 
Public 
Advocate to review and 
make 
recommendations to the Superintendent of Insurance regarding insurance rates, policies 
and availability of products to Maine consumers. 
The Public Advocate also may 
1 
intervene on behalf of a consumer or group of consumers of insurance products in any 
action before the Department of Professional and Financial Regulation, Bureau of 
Insurance, other state or federal agencies or courts. 
This bill also imposes a filing fee of $50,000 on an insurer who files for a rate change 
to workers' compensation insurance or employers' liability insurance written in 
connection with workers' compensation insurance. The fee is dedicated to the Public 
Advocate to fund the expanded duties as proposed in this bill.