An Act To Equalize Annuity and Structured Settlement Annuity Benefits with Life Insurance under the Maine Life and Health Insurance Guaranty Association
Maine Legislature, Session 124, LD 0688
Committee Amendment CA_A_S40 (Senate)
Amends: 24-A MRSA §4603

COMMITTEE AMENDMENT "A " to S.P. 263, L.D. 688, Bill, "An Act To 
Equalize Annuity and Structured Settlement Annuity Benefits with Life Insurance under 
the Maine Life and Health Insurance Guaranty Association" 
Amend the bill by striking out everything after the title and before the summary 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 celiain insurance companies; and 
Whereas, if an insolvency occurs, the maximum amount of funds invested in 
annuity accounts and protected through the Maine Life and Health Insurance Guaranty 
Association is only $100,000; and 
Whereas, the maximum benefit amount is increased in this Act from $100,000 to 
$250,000 for the protection of those Maine residents with investments in annuity 
accounts; and 
Whereas, immediate enactment is necessary to provide the maximum protection 
granted in this Act 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-§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: 
Page I - 124LR1314(02)-1 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A "to S.P. 263, L.D. 688 
(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 major 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 Two hundred fifty thousand dollars in the present value of 
annuity benefits, including net cash surrender and net cash withdrawal values; or 
Sec. 2. 24-A MRSA §4603, sub-§3, ~C, 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 $250,000 in present value annuity 
benefits, in the aggregate, including net cash surrender and net cash withdrawal 
values. 
Sec. 3. Applicability. This Act applies to an insolvency of an insurance company 
who is a member of the Maine Life and Health Insurance Guaranty Association that 
occurs on or after the effective date of this Act. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment replaces the bill. The amendment increases the maximum benefit 
the Maine Life and Health Insurance Guaranty Association may be obligated to cover 
from $100,000 to $250,000 for annuity benefits and structured settlement annuities. The 
bill proposed an increase to $300,000. The amendment does not include any increase in 
the ma:ximum benefit for net cash sl1JTender and net cash withdrawal benefits for life 
insurance, which was proposed in the bill. The amendment also adds an emergency 
preamble and clause and provides that it applies to an insolvency of an insurance 
company who is a member of the Maine Life and Health Insurance Guaranty Association 
that occurs on or after the effective date of the Act. 
COMMITTEE AMENDMENT 
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