An Act To Permit Senior Citizens To Designate a 3rd Party To Receive Notice of Cancellation of Insurance Policies
Maine Legislature, Session 125, LD 0313
Committee: Insurance and Financial Services
Sponsors: HOBBINS, BRANNIGAN, SULLIVAN, BEAUDOIN
Amends: 24-A MRSA §2556, 24-A MRSA §2707-A, 24-A MRSA §2847-C, 24-A MRSA §5016, 24-A MRSA §5058, 24-A MRSA §5082

Legislative Document 
No. 313 
S.P. 93 
In Senate, February 8, 2011 
An Act To Permit Senior Citizens To Designate a 3rd Party To 
Receive Notice of Cancellation of Insurance Policies 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator HOBBINS of York. 
Cosponsored by Senators: BRANNIGAN of Cumberland, SULLIVAN of York, 
Representative: BEAUDOIN of Biddeford. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  24-A MRSA §2556, sub-§2, as enacted by PL 2007, c. 40, §1, is amended 
to read: 
2.  Restrictions on lapse or termination; age; organic brain disease.  
Notwithstanding any other provision of this chapter, the bureau shall adopt rules to 
provide restrictions on cancellation, termination or lapse of individual life insurance 
policies to reduce the danger that a life insurance policyholder will lose life insurance 
coverage due to age or organic brain disease. 
Sec. 2.  24-A MRSA §2707-A, as enacted by PL 1989, c. 835, §2, is amended to 
read: 
§2707-A.  Notification prior to cancellation 
The superintendent shall, by January 1, 1991, adopt rules to provide for notification 
of the insured person and another person, if designated by the insured, prior to 
cancellation of a health insurance policy for nonpayment of premiums, and to provide 
restrictions on cancellation when an insured person is 65 years of age or older or suffers 
from organic brain disease. 
The rules may include, but are not limited to, definitions, minimum disclosure 
requirements, notice provisions and cancellation restrictions.  Rules adopted pursuant to 
this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
Sec. 3.  24-A MRSA §2847-C, as enacted by PL 1991, c. 695, §5 and c. 824, Pt. 
A, §51, is amended to read: 
§2847-C.  Notification prior to cancellation 
The superintendent shall, by January 1, 1991, adopt rules to provide for notification 
of the insured person and another person, if designated by the insured, prior to 
cancellation of a health insurance certificate for nonpayment of premiums, and to provide 
restrictions on cancellation when an insured person is 65 years of age or older or suffers 
from organic brain disease. 
The rules may include, but are not limited to, definitions, minimum disclosure 
requirements, notice provisions and cancellation restrictions.  Rules adopted pursuant to 
this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 
The requirements of this section apply to all policies and certificates executed, 
delivered, issued for delivery, continued or renewed in this State. 
Sec. 4.  24-A MRSA §5016 is enacted to read: 
§5016.  Notification prior to cancellation 
The superintendent shall adopt rules to provide for notification of the insured person, 
and another person if designated by the insured, prior to cancellation of a Medicare 
supplement policy or certificate for nonpayment of premiums, and to provide restrictions 
on cancellation when an insured person is 65 years of age or older.  The rules may 
include, but are not limited to, definitions, minimum disclosure requirements, notice 
provisions and cancellation restrictions. Rules adopted pursuant to this section are routine 
technical rules as defined in Title 5, chapter 375, subchapter 2-A. The requirements of 
this section apply to all policies and certificates executed, delivered, issued for delivery, 
continued or renewed in this State. 
Sec. 5.  24-A MRSA §5058 is enacted to read: 
§5058.  Notification prior to cancellation 
The superintendent shall adopt rules to provide for notification of the insured person, 
and another person if designated by the insured, prior to cancellation of a long-term care 
policy or certificate for nonpayment of premiums, and to provide restrictions on 
cancellation when an insured person is 65 years of age or older.  The rules may include, 
but are not limited to, definitions, minimum disclosure requirements, notice provisions 
and cancellation restrictions. Rules adopted pursuant to this section are routine technical 
rules as defined in Title 5, chapter 375, subchapter 2-A.  The requirements of this section 
apply to all policies and certificates executed, delivered, issued for delivery, continued or 
renewed in this State. 
Sec. 6.  24-A MRSA §5082 is enacted to read: 
§5082.  Notification prior to cancellation 
The superintendent shall adopt rules to provide for notification of the insured person, 
and another person if designated by the insured, prior to cancellation of a long-term care 
insurance policy or certificate for nonpayment of premiums, and to provide restrictions 
on cancellation when an insured person is 65 years of age or older.  The rules may 
include, but are not limited to, definitions, minimum disclosure requirements, notice 
provisions and cancellation restrictions.  Rules adopted pursuant to this section are 
routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.  The 
requirements of this section apply to all policies and certificates executed, delivered, 
issued for delivery, continued or renewed in this State. 
Sec. 7.  Rulemaking.  The Superintendent of Insurance within the Department of 
Professional and Financial Regulation shall adopt rules as required by this Act before 
January 1, 2012. 
SUMMARY 
This bill permits insured persons 65 years of age or older to designate a 3rd party to 
also receive notice of cancellation of health insurance, Medicare supplement, life 
insurance and long-term care insurance policies.