An Act To Require Proper Notification of Life Insurance Cancellation
Maine Legislature, Session 127, LD 0220
Committee Amendment CA_B_H40 (House)
Amends: 5 MRSA §18058

COMMITTEE AMENDMENT :B" to H.P. 152, L.D. 220, Bill, "An Act To 
Require Proper Notification of Life Insurance Cancellation" 
Amend the bill by inserting after the title and before the enacting clause 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, coverage under the group life insurance coverage program administered 
by the Maine Public Employees Retirement System may be terminated for nonpayment of 
premium if premiums are not paid when due at the end of the month; and 
Whereas, employees have no recourse to reinstate coverage following termination; 
and 
Whereas, employees may not have received notice of cancellation during an unpaid 
leave of absence due to an accident or illness and family members learn of the 
termination of coverage only following the death of the employee; and 
Whereas, this legislation would allow employees to designate a 3rd party to also 
receive a notice of cancellation prior to the termination of life insurance coverage to 
provide further protection to avoid termination of coverage; and 
Whereas, immediate enactment of this legislation is needed to help preserve life 
insurance coverage for employees and their families; 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, ' 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRS A §18058, sub-§l, ~ 
is enacted to read: 
COMMITTEE AMENDMENT 
o~s 
~ 
COMMITTEE AMENDMEN~" to H.P. 152, L.D. 220 
D. The employee may designate in writing the name and address of a 3rd party to 
whom notice must be provided as required in subsection 6. 
Sec. 2. 5 MRSA §18058, sub-§6 is enacted to read: 
6. Notice to employee and 3rd party prior to lapse or termination. Coverage for 
an emplovee may not be terminated for nonpayment of premium unless, at least 14 days 
prior to the lapse or termination of coverage, the board has mailed by certified mail a 
notice of cancellation to the employee and any 3rd party designated by the employee by 
name and address in writing pursuant to subsection 1, paragraph D. 
Sec. 3. Notification to existing (~mployees. On or before July 1, 2015, the 
Maine Public Employees Retirement System shall provide an opportunity to all 
employees currently insured under the group life insurance program provided in 
accordance with the Maine Revised Statutes, Title 5, chapter 423, subchapter 6 to 
designate in writing the name and address of a 3rd party to whom notice of cancellation 
must be mailed prior to the cancellation of insurance coverage for nonpayment of 
premium. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved.' 
SUMMARY 
This amendment is the minority report of the committee. The amendment replaces the 
bill, which proposes to require individual life insurers to provide notice of termination of 
a life insurance policy by registered mail. The amendment requires the Maine Public 
Employees Retirement System to provide notice of cancellation of life insurance 
coverage administered by the Maine Public Employees Retirement System to an 
employee and any designated 3rd party. 
The notice must be by certified mail. The 
amendment also allows an employee coven~d by the Maine Public Employees Retirement 
System to designate a 3rd party to receive the cancellation notice. The amendment also 
adds an emergency preamble and clause. 
FISCAL NOTE REQUIRED 
(SeE~ attached) 
COMMITTEE AMENDMENT 
'" 
r 
Approved: 03/23/15 
frac 
LD 220 
LR 1043(03) 
An Act To Require Proper Notification of Life Insurance Cancellation 
Fiscal Note for Bill as Amended by Committee Amendment :BC H -lj{) j 
Committee: Insurance and Financial Services 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Minor cost increase - Other Funds 
Additional costs to the Maine Public Employees Retirement System associated with implementing the requirements of 
this legislation can be absorbed within existing budgeted resources. 
LR1043(03) - Fiscal Note - Page 1 of 1