An Act To Amend the Laws Governing Insurance as They Relate to Civil Penalties Imposed for Violations of Those Laws
Maine Legislature, Session 125, LD 0867
Committee: Insurance and Financial Services
Sponsors: SNOWE-MELLO, SULLIVAN
Amends: 24-A MRSA §12-A

Legislative Document 
No. 867 
S.P. 271 
In Senate, March 8, 2011 
An Act To Amend the Laws Governing Insurance as They Relate to 
Civil Penalties Imposed for Violations of Those Laws 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator SNOWE-MELLO of Androscoggin. 
Cosponsored by Senator: SULLIVAN of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  24-A MRSA §12-A, sub-§1, as amended by PL 2005, c. 41, §1, is further 
amended to read: 
1.  Civil penalty.  Civil penalties may be assessed against any person who: 
A.  Violates any provision of this Title, Title 24 or any other law enforced by the 
superintendent; 
B.  Violates any rule lawfully adopted by the superintendent; or 
C.  Violates any lawful order of the superintendent that has not been stayed by order 
of the superintendent or the Superior Court. 
The Superior Court, upon an action brought by the Attorney General, may assess a civil 
penalty of not less than $500 and not more than $5,000 for each violation, subject to an 
aggregate maximum of $50,000, in the case of an individual and not less than $2,000 and 
not more than $15,000, subject to an aggregate maximum of $100,000, for each violation 
in the case of a corporation or other entity other than an individual, unless the applicable 
law specifies a different civil penalty. 
The superintendent, following an adjudicatory hearing, may assess a civil penalty of up to 
$500 for each violation in the case of an individual, subject to an aggregate maximum of 
$5,000, unless the bureau proves by clear and convincing evidence that the violations 
were both intentional and with the intent to defraud consumers and that consumers in fact 
sustained material loss or damage, and a civil penalty of up to $10,000 for each violation 
in the case of a corporation or other entity other than an individual, subject to an 
aggregate maximum of $50,000, unless the bureau proves by clear and convincing 
evidence that the violations were both intentional and with the intent to defraud 
consumers and that consumers in fact sustained material loss or damage, unless the 
applicable law specifies a different civil penalty.  The superintendent shall notify the 
Attorney General or the Attorney General's designee of any such adjudicatory hearing at 
the time that the notice of hearing is issued by the superintendent.  The superintendent 
may not assess a civil penalty if the Attorney General notifies the superintendent that the 
Attorney General intends to pursue an action in Superior Court to seek civil penalties for 
the same conduct.   If the Attorney General elects to pursue the noticed action in Superior 
Court, the Attorney General shall notify the superintendent of that decision no later than 7 
days prior to the hearing.  If the Attorney General elects to pursue the noticed action in 
Superior Court, the Superior Court may impose damages only in accordance with the 
standards established in this subsection. 
SUMMARY 
This bill amends the laws governing insurance in relation to the assessment of civil 
penalties based upon multiple violations of these laws.  It sets caps on the civil penalties 
that the Superior Court may assess in an action brought by the Attorney General.  It also 
sets caps on the civil penalties that the Superintendent of Insurance may assess following 
an adjudicatory hearing except in cases in which the Department of Professional and 
Financial Regulation, Bureau of Insurance proves by clear and convincing evidence that 
the violations were intentional and with the intent to defraud consumers and that 
consumers in fact sustained material loss or damage.