An Act To Ensure the Workers' Compensation Board's Regulatory Oversight of the Maine Insurance Guaranty Association
Maine Legislature, Session 124, LD 0620
Committee Amendment CA_A_S85 (Senate)
Amends: 24-A MRSA §4438

COMMITTEE AMENDMENT "A "to S.P. 236, L.D. 620, Bill, "An Act To Ensure 
the Workers' Compensation Board's Regulatory Oversight of the Maine Insurance 
Guaranty Association" 
Amend the bill by inserting after section 1 the following: 
'Sec. 2. 24-A MRSA §4438, sub-§l,~, as amended by PL 1973, c. 585, §12, is 
further amended to read: 
F. 
Handle claims through its employees or through one or more insurers licensed in 
the State or other persons using employees licensed as adjusters in the State 
designated as servicing facilities. Designation of a servicing facility is subject to the 
approval of the superintendent, but designation of a member insurer as a servicing 
facility may be declined by such insurer;' 
Amend the bill by striking out all of section 3 (page 1, lines 30 to 34 in L.D.) and 
inserting the following: 
'Sec. 3. 24-A MRSA §4438, sub-§l, ~ is enacted to read: 
I. 
Pay all penalties, sanctions, forfeitures and fines provided for under the Maine 
Workers' Compensation Act of 1992 including penalties payable to the Workers' 
Compensation Board and the General Fund, except the penalty provided for in Title 
39-A, section 359, subsection 2. No penalty, fine, fOlfeiture, attorney's fees or other 
sanction may be imposed on the association if: 
(1) The Workers' Compensation Board finds that the association was prevented 
from complying with the Maine Workers' Compensation Act of 1992 because the 
association was unable in the exercise of reasonable diligence to obtain the 
records of the insolvent insurer; or 
(2) The Workers' Compensation Board finds that the association was prevented 
from complying with the Maine Workers' Compensation Act of 1992 because of 
circumstances beyond its reasonable control.' 
Amend the bill by inserting after section 11 the following: 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT" A' to S.P. 236, L.D. 620 
'Sec. 12. Application. This Act applies only to acts or omissions occurring on or 
after the effective date of this Act.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment specifies that the Maine Insurance Guaranty Association, or 
"association," must employ Maine licensed adjusters in the handling of claims. The 
amendment prohibits the imposition of penalties if the association is unable, in the 
exercise of reasonable diligence, to obtain the records of an insolvent insurer or was 
prevented from complying with the Maine Workers' Compensation Act of 1992 through 
no fault of its own. The amendment also makes clear that any acts or omissions by the 
association prior to the effective date of this legislation are not governed by the 
provisions of this legislation. 
lFKSCAL :\OTE REQURED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 04117/09 wac 
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LD620 
LR347(02) 
An Act To Ensure the Workers' Compensation Board's Regulatory Oversight of the Maine Insurance 
Guaranty Association 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by. Committee Amendment 'il" 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Minor revenue increase - General Fund 
This legislation may result in increased General Fund revenue from fines and penalties assessed by the Workers' 
Compensation Board. The amount can not be determined at this time but is not expected to be significant. 
LR0347(02) - Fiscal Note - Page I of I 
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