An Act to Require Insurers to Address Climate Risk in Their
Maine Legislature, Session 132, LD 1674
Committee: Health Coverage, Insurance and Financial Services
Sponsors: WARREN, GROHOSKI

Legislative Document
No. 1674
H.P. 1109
House of Representatives, April 17, 2025
An Act to Require Insurers to Address Climate Risk in Their 
Business Activities
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative WARREN of Scarborough.
Cosponsored by Senator GROHOSKI of Hancock and
Representatives: BECK of South Portland, FRIEDMANN of Bar Harbor, OSHER of Orono.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA c. 101 is enacted to read:
CHAPTER 101
INSURING OUR COMMUNITIES ACT
§7801.  Short title
This Act may be known and cited as "the Insuring Our Communities Act."
§7802.  Definitions
As used in this chapter, unless the context indicates otherwise, the following terms 
have the following meanings.
1.  New fossil fuel project.  "New fossil fuel project" means a project designed to 
facilitate the production of fossil fuels in excess of what is in development as of September 
15, 2025, including production of new coal infrastructure, power plants or mines.  "New 
fossil fuel project" includes projects that support exploring new oil and gas fields or 
otherwise expanding oil and gas reserves; examples of such projects include, but are not 
limited to, the construction of new wells, pipelines, terminals or gas power plants.
2.  Precautionary principle.  "Precautionary principle" means an approach taken to 
regulation that mandates that, when activities under consideration may lead to unacceptably 
serious or irreversible harm that is scientifically plausible but uncertain, actions must be 
taken to avoid or diminish that harm.
3.  Reporting year.  "Reporting year" means a 12-month period of time for which a 
company reports its financial performance.
§7803.  Climate risk mitigation for insurers
1.  Precautionary principle; new fossil fuel project underwriting restrictions.  The 
bureau shall:
A.  Integrate the precautionary principle into its regulation and supervision of insurers 
by:
(1)  Incorporating measures to anticipate, prevent or minimize the effects of climate 
risk and its adverse effects; and
(2)  Implementing cost-effective measures to address the climate risk exposure of 
insurers, even in the absence of full economic or scientific certainty;
B.  Require insurers, as a condition of doing business in the State, to annually submit 
a report on their progress on plans to align their investment and underwriting activities 
with science-based climate risk mitigation targets that are based on absolute 
greenhouse gas emissions reduction targets and do not rely on carbon offsets or 
unproven technology;
C.  Require insurers to annually submit a commitment to not invest or underwrite new 
fossil fuel projects; and
D.  Align insurer investment and underwriting activities with science-based climate 
risk mitigation targets by prohibiting underwriting for any new fossil fuel project and 
directing insurers to phase out existing underwriting for exploration, extraction, 
processing, exporting and transporting and any other significant action with respect to 
oil, natural gas, coal or any byproduct thereof.
2.  Investments and underwriting reporting.  No later than September 15, 2026 and 
annually thereafter, insurers subject to the requirements of this section pursuant to 
subsection 4 shall submit a report to the bureau disclosing the information required under 
this subsection for the preceding reporting year.  The report must disclose:
A.  The insurer's investments in:
(1)  Any company that derives 10% or more of its revenue from exploration, 
extraction, processing, exporting, transporting and any other significant action with 
respect to oil, natural gas, coal or any byproduct thereof;
(2)  Any project intended to facilitate or expand exploration, extraction, processing, 
exporting, transporting and any other significant action with respect to oil, natural 
gas, coal or any byproduct thereof; and
(3)  Any project intended to construct any infrastructure related to projects 
described under subparagraph (2), such as wells, pipelines, terminals and 
refineries;
B.  The greenhouse gas emissions associated with insurers' financing and investment 
activities from all of the insurer's investments;
C.  The insurer's gross premium underwriting for:
(1)  Any company that derives 10% or more of its revenue from exploration, 
extraction, processing, exporting, transporting and any other significant action with 
respect to oil, natural gas, coal or any byproduct thereof;
(2)  Any project intended to facilitate or expand exploration, extraction, processing, 
exporting, transporting and any other significant action with respect to oil, natural 
gas, coal or any byproduct thereof; and
(3)  Any project intended to construct any infrastructure related to projects 
described under subparagraph (2), such as wells, pipelines, terminals and 
refineries;
D.  The greenhouse gas emissions associated with the insurer's issuance of insurance 
or reinsurance policies from all of the insurer's underwriting; and
E.  Any other information the bureau considers necessary to effectively implement and 
enforce any rule adopted pursuant to this chapter.
The superintendent shall develop and implement criteria for reporting under this subsection 
that enable the superintendent to post the information reported pursuant to this subsection 
on the bureau's publicly accessible website.
Within 3 months of receiving a report required pursuant to this subsection, the 
superintendent shall compile and post the information in the report on the bureau's publicly 
accessible website.
3.  Consultants.  The superintendent may engage the services of attorneys, actuaries, 
accountants and other experts not otherwise a part of the superintendent's staff, at the 
reporting insurer's expense, as is reasonably necessary to assist in the review of an insurer's 
report submitted pursuant to subsection 2.  A person engaged pursuant to this subsection 
must be under the direction and control of the superintendent and must act in a purely 
advisory capacity.
4.  Application.  The superintendent shall subject an insurer to the requirements of this 
section if:
A.  The insurer reports over $10,000,000 of direct premiums written in the State on its 
annual filing of the so-called Schedule T form, or successor form, with the National 
Association of Insurance Commissioners;
B.  The insurer's activities or investments may expose the insurer to a heightened level 
of risk due to climate change; or
C.  The superintendent otherwise determines that disclosure is in the public interest.
§7804.  Divestiture
No later than September 15, 2030, the superintendent shall require any insurer doing 
business in the State to certify that the insurer has divested from:
1.  Fossil fuel revenue.  Any company that derives 10% or more of its revenue from 
exploration, extraction, processing, exporting, transporting and any other significant action 
with respect to oil, natural gas, coal or any byproduct thereof;
2.  Fossil fuel projects.  Any project intended to facilitate or expand exploration, 
extraction, processing, exporting, transporting and any other significant action with respect 
to oil, natural gas, coal or any byproduct thereof; and
3.  Infrastructure projects.  Any project intended to construct any infrastructure 
related to projects under subsection 2, such as wells, pipelines, terminals or refineries.
§7805.  Reporting
No later than September 15, 2026, and once every 2 years thereafter, the superintendent 
shall submit a report to the Legislature and the Governor pursuant to this subsection.  The 
initial report must disclose for the preceding calendar year, and the biennial report must 
disclose for the preceding 2 calendar years:
1.  Efforts to implement this chapter.  The bureau's efforts to implement this chapter;
2.  Regulatory and supervisory actions taken.  The bureau's regulatory and 
supervisory actions taken, if any, to bolster the resilience of insurers to the physical effects 
of climate change;
3.  Affordability and availability of insurance for disadvantaged communities.  
The effects, if any, that the insurers' efforts to address climate risk have had on the 
affordability and availability of insurance for disadvantaged communities;
4.  Readiness for climate change and energy transition.  Insurers' and the insurance 
market's readiness for climate change and any related energy transition;
5.  Major sources of climate risk.  Major sources of climate risk faced by the insurers;
6.  Gaps to address.  Any gaps in insurers' response to climate risk that the bureau 
intends to address; and
7.  Legislative action.  Any legislative action that must be taken in order to allow the 
bureau to address climate risk.
The report must be made available to the public and posted on the bureau's publicly 
accessible website.  
The report must include the bureau's planned regulatory and supervisory actions, if any, 
to bolster the resilience of insurers to the physical effects of climate change.
§7806.  Rules
The superintendent may adopt rules to implement this chapter.  Rules adopted pursuant 
to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
SUMMARY
This bill establishes the Insuring Our Communities Act, which requires insurers to 
address climate risk in their business activities.