An Act to Exempt Nonprofit Agricultural Membership Organizations from Insurance Requirements
Maine Legislature, Session 131, LD 0896
Committee: Health Coverage, Insurance and Financial Services
Sponsors: STEWART, MORRIS
Amends: 24-A MRSA §704

Legislative Document
No. 896
S.P. 388
In Senate, February 28, 2023
An Act to Exempt Nonprofit Agricultural Membership 
Organizations from Insurance Requirements
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator STEWART of Aroostook.
Cosponsored by Representative MORRIS of Turner.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §704, sub-§1, as amended by PL 2011, c. 192, §1, is further 
amended to read:
1.  Health insurance.  For purposes of this Title, except as provided in subsection 
subsections 2 and subsection, 3 and 4, "health insurance" means insurance of human beings 
against bodily injury, disablement or death by accident or accidental means, or the expense 
thereof, or against disablement or expense resulting from sickness, and every insurance 
appertaining thereto, including provision for the mental and emotional welfare of human 
beings by defraying the costs of legal services only to the extent provided for in chapter 38.
Sec. 2.  24-A MRSA §704, sub-§4 is enacted to read:
4.  Nonprofit agricultural membership organization.  As used in this Title and Title 
24, the use of "health insurance" and related terms such as "accident and health insurance," 
"accident and sickness insurance," "carrier," "health," "health benefit plan," "health care," 
"health insurer" or "insurer" do not include, unless specifically provided otherwise in the 
law, a nonprofit agricultural membership organization providing health care benefits in 
accordance with this subsection, and a nonprofit agricultural membership organization 
providing health care benefits in accordance with this subsection may not be considered to 
be engaged in the business of insurance for the purposes of this Title.  
A.  For the purposes of this subsection, "nonprofit agricultural membership 
organization" means a statewide nonprofit agricultural membership organization that 
is exempt from taxation under the federal Internal Revenue Code and that:
(1)  Has been in existence continuously since December 31, 1951;
(2)  Provides health care benefits coverage for the payment of medical expenses to 
or for members of the organization, their dependents and others; and
(3)  Conducts an annual audit that is performed by an independent certified public 
accountant in accordance with generally accepted accounting principles and that is 
made available to the public upon request.  
B.  At the time an initial application for coverage for health care benefits is taken with 
respect to new applicants and upon renewal of coverage with respect to persons 
previously covered, the nonprofit agricultural membership organization shall provide 
to the applicant or covered person a written notice stating that:
(1) The coverage is not provided by an insurance company;
(2) The plan is not subject to the laws and rules relating to insurance companies;
(3) The plan is not under the jurisdiction of the superintendent; and
(4) If the plan does not pay medical expenses that are eligible for payment under 
the plan for any reason, the individuals covered by the plan may be liable for such 
expenses.
SUMMARY
This bill exempts statewide nonprofit agricultural membership organizations that 
provide health care benefits and that meet certain requirements from the definition of 
"health insurance" under the Maine Insurance Code.