An Act to Make Corrections to the Maine Insurance Code
Maine Legislature, Session 131, LD 0036
Committee Amendment CA_A_S38 (Senate)
Amends: 24-A MRSA §1106

COMMITTEE AMENDMENT " fr " to S.P. 28, L.D. 36, "An Act to Make 
Corrections to the Maine Insurance Code" 
Amend the bill in section 1 in subsection 2 in the 3rd line (page 1, line 6 in L.D.) by 
striking out the following: "14" and inserting the following: '+4 10 business' 
Amend the bill in section 1 in subsection 2 in the 5th line (page 1, line 8 in L.D.) by 
inserting after the following: "~" the following: 'business' 
Amend the bill by striking out all of section 2 and inse11ing the following: 
'Sec. 2. 24-A MRSA §1106, sub-§4, as amended by PL 2001, c. 524, §2, is further 
amended to read: 
4. Except as otherwise expressly provided, an insurer may not invest more than 10% 
of its assets in the securities of any one person, other than investments eligible under the 
following sections: 
A. 1107 (public obligations); 
B. 1108 ( obligations, stock of certain federal and international agencies); tHld 
C. 1120 (common trust funds, mutual funds), but as to this exception, only with the 
prior approval of the superintendent and only in index mutual funds in an amount up 
to 20% of the insurer's assets-:-; and 
D. 1115 {stocks of subsidiaries), but only with the prior approval of the superintendent 
unless, with respect to investments in subsidiaries engaged in or organized to engage 
in the kinds of business in which the insurer may engage, the investments would not 
result in the aggregate net cost of the insurer's investments in all such subsidiaries 
exceeding 50% of its surplus as to policyholders. For the purposes of this paragraph, 
"net cost of the insurer's investment" means the sum of the total money or other 
consideration expended and obligations assumed in the acquisition or formation of a 
subsidiary, including all organizational expenses and contributions to capital and 
surplus of that subsidiary, and all amounts expended in acquiring additional common 
stock, preferred stock, debt obligations and other securities, and all contributions to the 
COMMITTEE AMENDMENT 
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~ 
COMMITTEE AMENDMENT" /j "to S.P. 28, L.D. 36 l )"DB) 
capital or surplus, of a subsidiaty subsequent to its acquisition or fonnation less any 
returns of capital, repayments of principal and any other payments that reduce the 
insurer's investment in the subsidiaty.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or section 
number to read consecutively. 
SUMMARY 
This amendment changes the time frame in the bill related to when insurers and other 
licensees respond to inquiries from 14 days to 10 business days and clarifies that responses 
to follow-up inquiries must be made within 5 business days. 
The amendment also clarifies that domestic insurance companies are required to get 
prior approval of the Superintendent oflnsurance before investing in stocks of subsidiaries 
unless, with respect to investments in subsidiaries engaged in the same kinds of business 
as the insurance company, the investments would not result in the aggregate net cost of the 
insurer's investments in all such subsidiaries exceeding 50% of its surplus to policyholders. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03/03/23 ;t,;ra~ 
LD36 
LR 145(02) 
An Act to Make Corrections to the Maine Insurance Code 
Fiscal Note for Bill as Amended by Committee Amendment ''ff (_ s-3i;) 
Committee: Health Coverage, Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Additional costs to the Department of Professional and Financial Regulation to implement the provisions in this bill 
are expected to be minor and can be absorbed within existing budgeted resources. 
LR0145(02) - Fiscal Note - Page 1 of 1