An Act To Clarify Guaranteed Fund Protection for Deferred Compensation Accounts
Maine Legislature, Session 124, LD 0390
Committee Amendment CA_A_S58 (Senate)
Amends: 24-A MRSA §4603

COMMITTEE AMENDMENT "Ie. "to S.P. 132, L.D. 390, Bill, "An Act To Clarify 
Guaranteed Fund Protection for Deferred Compensation Accounts" 
Amend the bill by striking out everything after the title and inserting the following: 
'Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, current financial and economic conditions have raised concerns about the 
financial health of certain insurance companies that provide deferred compensation plans 
to State employees and other government employees; and 
Whereas, this bill clarifies that individual deferred compensation accounts are 
protected through the Maine Life and Health Insurance Guaranty Association if a 
deferred compensation provider becomes insolvent; and 
Whereas, immediate enactment of this Act is necessary for the protection of 
individuals with investments in governmental retirement benefit plans in the event of an 
insolvency; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA §4603, sub-§2, ~, as enacted by PL 2005, c. 346, §2 and 
affected by § 16, is amended to read: 
L. 
Any unallocated annuity contract, except any annuity, whether allocated or 
unallocated, issued to a governmental retirement benefit plan established under the 
United States Internal Revenue Code, 26 United States Code, Section 401, 403(b) or 
457; and 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT') "to S.P. 132, L.D. 390 
Sec. 2. 24-A MRSA §4603, sub-§3, ~, as enacted by PL 2005, c. 346, §2 and 
affected by § 16, is amended to read: 
B. 
With respect to one life, regardless of the number of policies or contracts: 
(1) Three hundred thousand dollars in life insurance death benefits, but not more 
than $100,000 in net cash surrender and net cash withdrawal values for life 
insurance; 
(2)· The following limits for health insurance benefits: 
(a) Three hundred thousand dollars for coverages not defined as disability 
insurance or basic hospital, medical and surgical insurance or maj or medical 
insurance, including any net cash surrender and net cash withdrawal values; 
(b) 
Three hundred thousand dollars for disability and long-term care 
insurance; or 
(c) Five hundred thousand dollars for basic hospital, medical and surgical 
insurance or major medical insurance; or 
(3) 
One hundred thousand dollars in the present value of annuity benefits, 
including net cash surrender and net cash withdrawal values; Bf 
Sec. 3. 24-A MRSA §4603, sub-§3, EUC, as enacted by PL 2005, c. 346, §2 and 
affected by § 16, is amended to read: 
C. 
With respect to each payee of a structured settlement annuity, or beneficiary or 
beneficiaries of the payee if deceased, $100,000 in present value annuity benefits, in 
the aggregate, including net cash surrender and net cash withdrawal values.,.; and 
Sec. 4. 24-A MRSA §4603, sub-§3, CUD is enacted to read: 
D. With respect to each individual participating in a governmental retirement benefit 
plan established under the United States Internal Revenue Code, 26 United States 
Code, Section 401, 403(b) or 457, or the beneficiaries of each individual if deceased, 
the [mancial interest of such participant allocated to an annuity contract by either the 
member insurer that issued the annuity or the plan, but not to exceed in the aggregate 
$250,000 in present value of annuity benefits, including net cash surrender and net 
cash withdrawal values under all such annuities issued by the same member insurer. 
Sec. 5. 
Application. 
This Act applies with respect to an insolvency of an 
insurance company that is a member of the Maine Life and Health Insurance Guaranty 
Association that occurs on or after the effective date this Act. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment replaces the concept draft. The amendment provides that the annuity 
contracts issued to individuals participating in governmental retirement benefit plans are 
protected through the Maine Life and Health Insurance Guaranty Association whether 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A "to S.P. 132, L.D. 390 
those annuities are allocated or unallocated. The amendment also specifies that the 
financial interest of participants in those plans is protected up to $250,000 in the 
aggregate in present value of annuity benefits. 
The amendment adds an emergency 
preamble and provides that the Act applies to an insolvency of an insurance company that 
is a member of the Maine Life and Health Insurance Guaranty Association that occurs on 
or after the date the Act is approved. 
COMMITTEE AMENDMENT