reglab/statecodes huggingface dataset:
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 1: REHABILITATION AND LIQUIDATION › 24-A §4382. Report and petition for assessment

§4382. Report and petition for assessment
Within 3 years after the date of the entry of an order of rehabilitation or liquidation of a domestic mutual insurer or a domestic reciprocal insurer, the superintendent may make and file the superintendent's report and petition to the court setting forth:   [RR 2021, c. 1, Pt. B, §376 (COR).]
1.
The reasonable value of the assets of the insurer;
[PL 1969, c. 132, §1 (NEW).]
2.
The liabilities of the insurer to the extent thus far ascertained by the superintendent;
[PL 1973, c. 585, §12 (AMD).]
3.
The aggregate amount of the assessment, if any, which the superintendent deems reasonably necessary to pay all claims, the costs and expenses of the collection of the assessments and the costs and expenses of the delinquency proceedings in full; and
[PL 1973, c. 585, §12 (AMD).]
4.
Any other information relative to the affairs or property of the insurer that the superintendent deems material.
[PL 1973, c. 585, §12 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §376 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 1: REHABILITATION AND LIQUIDATION › 24-A §4383. Order and levy of assessment

§4383. Order and levy of assessment
1.
Upon the filing and reading of the report and petition provided for in section 4382, the court, ex parte, may order the superintendent to assess all members or subscribers of the insurer who may be subject to such an assessment, in such an aggregate amount as the court finds reasonably necessary to pay all valid claims as may be timely filed and proved in the delinquency proceedings, together with the costs and expenses of levying and collecting assessments and the costs and expenses of the delinquency proceedings in full. Any such order must require the superintendent to assess each such member or subscriber for the member's or subscriber's proportion of the aggregate assessment, according to such reasonable classification of such members or subscribers and formula as may be made by the superintendent and approved by the court.
[RR 2021, c. 1, Pt. B, §377 (COR).]
2.
The court may order additional assessments upon the filing and reading of any amendment or supplement to the report and petition referred to in subsection 1, if such amendment or supplement is filed within 3 years after the date of the entry of the order of rehabilitation or liquidation.
[PL 1969, c. 132, §1 (NEW).]
3.
After the entry of the order to levy and assess members or subscribers of an insurer referred to in subsections 1 and 2, the superintendent shall levy and assess members or subscribers in accordance with the order.
[PL 1973, c. 585, §12 (AMD).]
4.
The total of all assessments against any member or subscriber with respect to any policy, whether levied pursuant to any other provision of this Title, shall be for no greater amount than that specified in the policy or policies of the member or subscriber and as limited under this Title, except as to any policy which was issued at a rate of premium below the minimum rate lawfully permitted for the risk insured, in which event the assessment against any such policyholder shall be upon the basis of the minimum rate for such risk.
[PL 1969, c. 132, §1 (NEW).]
5.
No assessment shall be levied against any member or subscriber with respect to any nonassessable policy issued in accordance with this Title.
[PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §377 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 1: REHABILITATION AND LIQUIDATION › 24-A §4384. Assessment prima facie correct; notice; payment; proceedings to collect

§4384. Assessment prima facie correct; notice; payment; proceedings to collect
1.
Any assessment of a subscriber or member of an insurer made by the superintendent pursuant to the order of court fixing the aggregate amount of the assessment against all members or subscribers and approving the classification and formula made by the superintendent under section 4383, subsection 1 shall be prima facie correct.
[PL 1973, c. 585, §12 (AMD).]
2.
Each member or subscriber must be notified of the amount of assessment to be paid by the member or subscriber by written notice mailed to the address of the member or subscriber last of record with the insurer. Failure of the member or subscriber to receive the notice so mailed, within the time specified therein or at all, is not a defense in any proceeding to collect the assessment.
[RR 2021, c. 1, Pt. B, §378 (COR).]
3.
If any such member or subscriber fails to pay the assessment within the period specified in the notice, which period shall not be less than 20 days after mailing, the superintendent may obtain an order in the delinquency proceedings requiring the member or subscriber to show cause at a time and place fixed by the court why judgment should not be entered against such member or subscriber for the amount of the assessment together with all costs, and a copy of the order and a copy of the petition therefor shall be served upon the member or subscriber within the time and in the manner designated in the order.
[PL 1973, c. 585, §12 (AMD).]
4.
If the subscriber or member after due service of a copy of the order and petition referred to in subsection 3 is made upon the subscriber or member:
A. Fails to appear at the time and place specified in the order, judgment must be entered against the subscriber or member as prayed for in the petition; or   [RR 2021, c. 1, Pt. B, §379 (COR).]
B. Appears in the manner and form required by law in response to the order, the court shall hear and determine the matter and enter a judgment in accordance with its decision.   [PL 1969, c. 132, §1 (NEW).]
[RR 2021, c. 1, Pt. B, §379 (COR).]
5.
The superintendent may collect any such assessment through any other lawful means.
[PL 1973, c. 585, §12 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §§378, 379 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 1: REHABILITATION AND LIQUIDATION › 24-A §4385. Federal receivership

§4385. Federal receivership
1.
Whenever in the superintendent's opinion liquidation of a domestic insurer or an alien insurer domiciled in this State would be facilitated by a federal receivership, and when any ground exists upon which the superintendent might petition the court for an order of rehabilitation or liquidation of the insurer under this chapter, or if such an order has already been entered, the superintendent may request another superintendent or other resident of another state to petition any appropriate federal district court for the appointment of a federal receiver. The superintendent may intervene in any such action to support or oppose the petition, and may accept appointment as the receiver if so designated. This chapter applies to the receivership except to the extent that the court determines that the insurance rehabilitation and liquidation laws of another state are applicable in any part. Upon the superintendent's motion, the courts of this State shall relinquish all jurisdiction over the insurer for purposes of rehabilitation or liquidation. No federal law governing proceedings in bankruptcy may be applied to proceedings under this section.
[PL 1991, c. 828, §32 (AMD).]
2.
If the superintendent is appointed receiver under this section, the superintendent shall comply with requirements necessary to give the superintendent title to and control over the assets and affairs of the insurer.
[RR 2021, c. 1, Pt. B, §380 (COR).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1991, c. 828, §32 (AMD). RR 2021, c. 1, Pt. B, §380 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 1: REHABILITATION AND LIQUIDATION › 24-A §4386. Application for approval

§4386. Application for approval
1.  Insolvency; assets disbursed.
Within 120 days after a final determination of insolvency of a company by a court of competent jurisdiction of this State, the receiver shall make application to the court for approval of a proposal to disburse assets out of the company's marshaled assets, from time to time as those assets become available, to the Maine Insurance Guaranty Association, to the Maine Life and Health Insurance Guaranty Association and to any similar organization in another state. The Maine Insurance Guaranty Association, the Maine Life and Health Insurance Guaranty Association and any similar organizations in other states are referred to, collectively, as the associations.
[PL 2017, c. 382, §1 (AMD).]
2.  Proposals.
The proposals shall at least include provisions for:
A. Reserving amounts for the payment of the expenses of administration and the claims falling within the priorities established in section 4379, subsections 1 and 4‑B;   [PL 2017, c. 169, Pt. D, §6 (AMD).]
B. Disbursement of the assets marshaled to date and subsequent disbursements of assets as they become available;   [PL 1981, c. 347 (NEW).]
C. Equitable allocation of disbursements to each of the associations entitled thereto; and   [PL 1981, c. 347 (NEW).]
D. The securing by the receiver from each of the associations entitled to disbursements pursuant to this section of an agreement to return to the receiver the assets, and interest earned thereon, previously disbursed as may be required to pay claims as secured creditors and claims falling within the priorities established in section 4379, subsections 1 to 6, in accordance with those priorities.   [PL 1981, c. 347 (NEW).]
[PL 2017, c. 169, Pt. D, §6 (AMD).]
3.  Disbursements to associations.
The receiver's proposal shall provide for disbursements to the associations in amounts at least equal to the payments made or to be made thereby for which the association could assert claims against the receiver and shall further provide that if the assets available for disbursement, from time to time, do not equal or exceed the amounts of the payments made or to be made by the associations, then disbursements shall be in the amount of available assets.
[PL 1981, c. 347 (NEW).]
4.  Notice.
Notice of the application shall be given to the associations in, and to the commissioners of insurance of, each of the states. Any such notice shall be deemed to have been given when deposited in the United States certified mails, first class postage prepaid, at least 30 days prior to submission of the application to the court. Action on the application may be taken by the court provided the notice has been given and provided further that the receiver's proposal complies with subsection 2, paragraphs A and D.
[PL 1981, c. 347 (NEW).]
SECTION HISTORY
PL 1981, c. 347 (NEW). PL 2017, c. 169, Pt. D, §6 (AMD). PL 2017, c. 382, §1 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4401. Summary proceedings; superintendent's corrective orders authorized

§4401. Summary proceedings; superintendent's corrective orders authorized
1.
If the superintendent determines after a hearing that any insurer has committed or engaged in, or is committing or engaging in, or is about to commit or engage in any act, practice or transaction that would subject it to formal delinquency proceedings under sections 4351 to 4407, the superintendent may make and serve upon the insurer and other persons involved such orders, other than seizure orders under sections 4404 and 4405, as the superintendent considers reasonably necessary to correct, eliminate or remedy such conduct, condition or ground. Orders to cure impairment of capital or surplus of a domestic insurer are subject to sections 3423 and 3424.
[RR 2021, c. 2, Pt. A, §85 (COR).]
2.
If the superintendent believes that irreparable harm to the insurer or its policyholders, creditors or the public may occur unless the superintendent's order is issued with immediate effect, the superintendent may make and serve the superintendent's order without notice and before hearing, and shall simultaneously therewith serve upon the insurer and other persons involved the notice of hearing as required under subsection 3.
[RR 2021, c. 1, Pt. B, §382 (COR).]
3.
The superintendent's order and notice of hearing thereunder shall be served in such a manner as conforms with the notice provisions of the Maine Administrative Procedure Act, Title 5, chapter 375, subchapter IV.
[PL 1977, c. 694, §438 (RPR).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). PL 1977, c. 694, §438 (AMD). RR 2021, c. 1, Pt. B, §§381, 382 (COR). RR 2021, c. 2, Pt. A, §85 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4402. -- appeal from superintendent's order

§4402. -- appeal from superintendent's order
If the superintendent has issued a summary order before hearing as provided in section 4401, subsection 2, any person upon whom such order is served may waive the superintendent hearing and apply for any immediate judicial relief available under law and without first exhausting administrative remedies. Section 236 (appeal from superintendent) shall apply as to appeals from the superintendent's order made after hearing.   [PL 1973, c. 585, §12 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4403. -- enforcement, penalty

§4403. -- enforcement, penalty
1.
The superintendent may apply for and any Superior Court may grant such restraining orders, temporary and permanent injunctions and other orders as may be deemed necessary to enforce the superintendent's order.
[PL 1973, c. 585, §12 (AMD).]
2.
Violation of any order of the superintendent issued under section 4401 by any person as to whom the order is in effect shall subject such person to a penalty of not to exceed $10,000, to be collected in a civil action brought by the Attorney General in the name of the State of Maine. The Attorney General shall deposit all funds so collected with the Treasurer of State to the credit of the Insurance Division Regulatory Revolving Fund.
[PL 1973, c. 585, §12 (AMD).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4404. -- seizure under court order

§4404. -- seizure under court order
1.
Upon filing by the superintendent in any Superior Court of this State of the superintendent's verified petition alleging any ground for a formal delinquency proceeding against an insurer under sections 4351 to 4385 and that the interests of the insurer's policyholders or creditors or the public will be jeopardized by delay, and setting forth the order considered necessary by the superintendent, the court shall, ex parte and without notice or hearing, issue the requested order. The requested order may:
A. Direct the superintendent to take possession and control of all or part of the property, books, accounts and records of the insurer and the premises occupied by it for transaction of its business; and   [PL 1973, c. 585, §12 (AMD).]
B. Until further order of court, enjoin the insurer and its officers, managers, agents and employees from removal, concealment or other disposition of its property, and from transaction of its business, except with the superintendent's written consent.   [PL 1973, c. 585, §12 (AMD).]
[RR 2021, c. 1, Pt. B, §383 (COR).]
2.
The court's order shall be for such duration, specified in the order, as the court deems necessary to enable the superintendent to ascertain the insurer's condition. On motion of any party or on its own motion, the court may hold such hearings as it deems desirable after such notice as it deems appropriate, and extend or shorten the duration or modify the terms of the order. The court shall vacate the seizure order if the superintendent fails to commence a formal proceeding under sections 4351 to 4385 after reasonable opportunity to do so; and a seizure order is automatically vacated by issuance of the court's order pursuant to formal delinquency proceedings under such sections of this chapter.
[PL 1973, c. 585, §12 (AMD).]
3.
Entry of a seizure order under this section does not constitute an anticipatory breach of any contract of the insurer.
[PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §383 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4405. -- seizure under the superintendent's order

§4405. -- seizure under the superintendent's order
1.
If it appears to the superintendent that the interests of policyholders, creditors or the public will be jeopardized by delay incident to requesting a court seizure order, then on any ground that would justify a court seizure order under section 4404, and without notice and without applying to the court, the superintendent may issue a seizure order that must contain a statement verified by the superintendent of the grounds of the superintendent's action. As directed by the seizure order, the superintendent's representatives shall forthwith take possession and control of all or part of the property, books, accounts and records of the insurer, and of the premises occupied by the insurer for transaction of its business. The superintendent shall retain possession and control until the order is vacated or is replaced by an order of court pursuant to subsection 2 or pursuant to a formal proceeding under this chapter.
[RR 2021, c. 1, Pt. B, §384 (COR).]
2.
At any time after seizure under subsection 1 the insurer may apply to the Superior Court for Kennebec County or for the county in this State in which the insurer's principal office is located. The court shall thereupon order the superintendent to appear forthwith and shall thereafter proceed as if the order were a court seizure order issued under section 4404.
[PL 1973, c. 585, §12 (AMD).]
3.
Every law enforcement officer of this State shall assist the superintendent in making and enforcing any such seizure, and every sheriff's and police department shall furnish the superintendent with such deputies or other law enforcement officers as are necessary for the purpose.
[PL 2021, c. 676, Pt. A, §40 (AMD).]
4.
Entry of a seizure order under this section does not constitute an anticipatory breach of any contract of the insurer.
[PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §384 (COR). PL 2021, c. 676, Pt. A, §40 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4406. -- conduct of hearings, both administrative and by the court, in summary proceedings

§4406. -- conduct of hearings, both administrative and by the court, in summary proceedings
1.
The superintendent shall hold all hearings in summary proceedings privately unless the insurer requests a public hearing, in which case the hearing shall be public.
[PL 1973, c. 585, §12 (AMD).]
2.
The court may hold all hearings in summary proceedings and judicial reviews thereof privately in chambers, and shall do so on request of the insurer proceeded against.
[PL 1969, c. 132, §1 (NEW).]
3.
In all summary proceedings and judicial reviews thereof, all records of the insurer, other documents, and all insurance bureau files and court records and papers, so far as they pertain to or are part of the record of the summary proceedings, are and remain confidential except as necessary to obtain compliance therewith, unless the court after hearing arguments by the parties in chambers orders otherwise, or unless the insurer requests that the matter be made public. Until the court otherwise orders, all papers filed with the clerk of court must be held by the clerk of court in a confidential file.
[RR 2021, c. 1, Pt. B, §385 (COR).]
4.
If at any time it appears to the court that any person whose interest is or will be substantially affected by an order did not appear at the hearing and has not been served, the court may order that notice be given and the proceedings be adjourned to give such person opportunity to appear, on such terms as may be reasonable and just.
[PL 1969, c. 132, §1 (NEW).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §385 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 2: SUMMARY PROCEEDINGS › 24-A §4407. Penalty for refusal to deliver property, etc.

§4407. Penalty for refusal to deliver property, etc.
Any person having possession or custody of and refusing to deliver to the superintendent or the superintendent's representative upon request any of the property, books, accounts, documents or other records of an insurer against which a seizure order or a summary order has been issued by the superintendent or by the court, as provided under sections 4401 to 4406, is upon conviction thereof subject to a fine of not over $10,000 or imprisonment for less than one year, or by both such fine and imprisonment.   [RR 2021, c. 1, Pt. B, §386 (COR).]
SECTION HISTORY
PL 1969, c. 132, §1 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §386 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4431. Short title

§4431. Short title
This subchapter shall be known and may be cited as the Maine Insurance Guaranty Association Act.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4432. Purpose

§4432. Purpose
The purpose of this subchapter is to provide a mechanism for the payment of covered claims under certain insurance policies to avoid excessive delay in payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in the detection and prevention of insurer insolvencies, and to provide an association to assess the cost of such protection among insurers.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4434. Construction

§4434. Construction
This subchapter shall be liberally construed to effect the purpose stated under section 4432, which shall constitute an aid and guide to interpretation.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4436. Creation of the association

§4436. Creation of the association
There is created a nonprofit unincorporated legal entity to be known as the Maine Insurance Guaranty Association. All insurers defined as member insurers in section 4435 shall be and remain members of the association as a condition of their authority to transact insurance in this State. The association shall perform its functions under a plan of operation established and approved under section 4439 and shall exercise its powers through a board of directors established under section 4437. For purposes of administration and assessment, the association shall be divided into 3 separate accounts:   [PL 1969, c. 561 (NEW).]
1.
The workers' compensation insurance account;
[PL 1987, c. 707, §7 (AMD).]
2.
The automobile insurance account; except those insurers writing only automobile physical damage insurance, which shall be included in the all other insurance account; and
[PL 1969, c. 561 (NEW).]
3.
The account for all other insurance to which this subchapter applies.
[PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1987, c. 707, §7 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4437. Board of directors

§4437. Board of directors
The board of directors of the association must consist of not less than 7 persons serving terms as established in the plan of operation, and not less than 3 of the persons must represent members of the association that are domiciled in the State. The members of the board must be selected by member insurers subject to the approval of the superintendent. A member insurer serving on the board must resign if the member insurer ceases writing new insurance business in the State. Vacancies on the board must be filled for the remaining period of the term by a majority vote of the remaining board members, subject to the approval of the superintendent.   [PL 2009, c. 116, §1 (AMD).]
In approving selections to the board, the superintendent shall consider among other things whether all member insurers are fairly represented.   [PL 1973, c. 585, §12 (AMD).]
Members of the board may be reimbursed from the assets of the association for expenses incurred by them as members of the board of directors.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 585, §12 (AMD). PL 1973, c. 625, §160 (AMD). PL 1985, c. 279, §3 (AMD). PL 2009, c. 116, §1 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4440-A. Special assessment

§4440-A. Special assessment
1.  Special assessment.
If the maximum assessment, together with the other assets of the association in any account, does not provide in any one year in any account an amount sufficient to make all necessary payments from that account, the shortfall shall be assessed as an obligation of the other accounts of the association, with each member insurer's assessment to be in the proportion that its net direct written premiums for the calendar year preceding the assessment on the kinds of insurance in the accounts to be assessed bears to the total net direct written premiums of all member insurers for the same calendar year on the kinds of insurance in those accounts. The total of assessments against a member insurer under this section and section 4440 for any account in any one calendar year shall not exceed 2% of that member's net direct written premium on the kinds of insurance written in that account for the next preceding calendar year.
[PL 1989, c. 67, §8 (NEW).]
2.  Limit on assessment.
Subject to the 2% limitation, an assessment made under this section may not exceed 5% of the average of a member insurer's net income of the 3 years prior to the year in which the assessment is made for any member insurer:
A. That has surplus of less than $15,000,000 and either a ratio of total net direct written premium to total surplus greater than 2 or net income of less than $250,000 for the year preceding the assessment. For purposes of this subsection, "net income" means the sum of underwriting income and investment income, net of dividends to policyholders and federal and foreign income taxes incurred, as reported on the insurer's annual statement filed with the superintendent. "Total surplus" means surplus as regards policyholders, as reported on the insurer's annual statement filed with the superintendent; or   [PL 1995, c. 289, §17 (AMD).]
B. That has a surplus of less than $15,000,000 and has fewer than 3,000 policyholders.   [PL 1995, c. 289, §17 (AMD).]
[PL 1995, c. 289, §17 (AMD).]
3.  Repealer.
[PL 1989, c. 67, §8 (NEW); PL 1989, c. 751, §5 (RP).]
4.  Notification to Legislature.
Within 7 days after the board of directors votes to levy an assessment under this section, the chair of the board of directors shall notify the chairs of the legislative committee having jurisdiction over insurance matters that the association has voted to make such an assessment. The notification must:
A. Be in writing; and   [PL 1989, c. 751, §6 (NEW).]
B. Include the total amount to be assessed against each account and the name of the account to which the assessed funds will be credited.   [PL 1989, c. 751, §6 (NEW).]
[PL 1989, c. 751, §6 (NEW).]
SECTION HISTORY
PL 1989, c. 67, §8 (NEW). PL 1989, c. 641, §§1,2 (AMD). PL 1989, c. 751, §§5,6 (AMD). PL 1995, c. 289, §17 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4440-B. Assessment of excess insurers (REPEALED)

§4440-B. Assessment of excess insurers
(REPEALED)
SECTION HISTORY
PL 1989, c. 67, §8 (NEW). MRSA T. 24-A §4440-B (RP).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4441. Duties and powers of the superintendent

§4441. Duties and powers of the superintendent
1.  Duties and powers.
The superintendent shall:
A. Notify the association of the existence of an insolvent insurer not later than 3 days after the superintendent receives notice of the determination of the insolvency. The association shall be entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member insurer which is domiciled in this State at the same time that the complaint is filed with a court of competent jurisdiction; and   [PL 1987, c. 707, §9 (AMD).]
B. Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.   [PL 1969, c. 561 (NEW).]
[PL 1987, c. 707, §9 (AMD).]
2.  Permission.
The superintendent may:
A. Require that the association notify the insureds of the insolvent insurer and any other interested parties of the order of liquidation with a finding of insolvency and of their rights under this subchapter. Such notifications must be by mail at their last known addresses, where available, but if required information for notification by mail is not available, notice by publication in a newspaper of general circulation in this State is sufficient. Any notification given under this paragraph must prominently display the date by which all claims must be filed with the association.   [PL 2001, c. 478, §10 (AMD); PL 2001, c. 478, §11 (AFF).]
B. Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this State of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation.   [PL 1969, c. 561 (NEW).]
C. Revoke the designation of any servicing facility if the superintendent finds claims are being handled unsatisfactorily.   [RR 2021, c. 1, Pt. B, §387 (COR).]
[RR 2021, c. 1, Pt. B, §387 (COR).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 585, §12 (AMD). PL 1987, c. 707, §9 (AMD). PL 2001, c. 478, §10 (AMD). PL 2001, c. 478, §11 (AFF). RR 2021, c. 1, Pt. B, §387 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4442. Effect of paid claims

§4442. Effect of paid claims
Any person recovering on a covered claim under this subchapter must be deemed to have assigned the person's rights under the policy to the association to the extent of the person's recovery from the association. Every insured or claimant seeking the protection of this subchapter shall cooperate with the association to the same extent as such person would have been required to cooperate with the insolvent insurer. The association has no cause of action against the insured of the insolvent insurer for any sums it has paid out except such causes of action as the insolvent insurer would have had if such sums had been paid by the insolvent insurer. In the case of an insolvent insurer operating on a plan with assessment liability, payment of claims by the association does not operate to reduce the liability of insureds to the receiver, liquidator or statutory successor for unpaid assessments.   [RR 2021, c. 1, Pt. B, §388 (COR).]
The receiver, liquidator or statutory successor of an insolvent insurer shall be bound by settlements of covered claims by the association or a similar organization in another state. The court having jurisdiction shall grant such claims priority equal to that which the claimant would have been entitled in the absence of this subchapter against the assets of the insolvent insurer. The expenses of the association or similar organization in handling claims shall be accorded the same priority as the liquidator's expenses.   [PL 1969, c. 561 (NEW).]
The association shall periodically file with the receiver or liquidator of the insolvent insurer statements of the covered claims paid by the association and estimates of anticipated claims on the association, which shall preserve the rights of the association against the assets of the insolvent insurer.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW). RR 2021, c. 1, Pt. B, §388 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4443. Nonduplication of recovery

§4443. Nonduplication of recovery
1.  Insurance policy.
Any person having a claim against an insurer under any provision in an insurance policy, other than that of an insolvent insurer, which is also a covered claim, shall be required to exhaust first the person's right under the policy. Any amount otherwise payable on a covered claim under this subchapter shall be reduced by the amount of any recovery under the insurance policy.
[PL 1987, c. 707, §10 (NEW).]
2.  Governmental insurance.
Any person having a claim or legal right of recovery under any governmental insurance, which is also a covered claim, shall be required to exhaust first that person's right under that insurance. Any amount payable on a covered claim under this subchapter shall be reduced by the amount of any recovery under that insurance.
[PL 1987, c. 707, §10 (NEW).]
3.  Insurance guaranty association.
Any person having a claim which may be recovered from more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured, except that, if it is a first party claim for damage to property with a permanent location, that person shall seek recovery first from the association of the location of the property, and, if it is a workers' compensation claim, that person shall seek recovery first from the association of the residence of the claimant. Any recovery under this subchapter shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent.
[PL 1987, c. 707, §10 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1987, c. 707, §10 (RPR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4444. Prevention of insolvencies

§4444. Prevention of insolvencies
To aid in the detection and prevention of insurer insolvencies:   [PL 1969, c. 561 (NEW).]
1.  Notification.
The board of directors, upon majority vote, shall notify the superintendent of any information indicating that any member insurer may be insolvent or in a financial condition hazardous to policyholders or the public.
[PL 1973, c. 585, §12 (AMD).]
2.  Examination.
The board of directors may, upon majority vote, request that the superintendent order an examination of any member insurer which the board in good faith believes may be in a financial condition hazardous to policyholders or the public. Within 30 days of the receipt of such request, the superintendent shall begin such examination. The cost of the examination shall be paid by the association and the examination report shall be treated as are other examination reports. In no event shall the examination report, or any portion thereof, be released to the board of directors prior to its release to the public, but this shall not preclude the superintendent from complying with subsection 3. The superintendent shall notify the board of directors when the examination is completed. The request for an examination shall be kept on file by the superintendent but shall not be open to public inspection prior to the release of the examination report, or part thereof to the public, in accordance with section 227.
[PL 1973, c. 585, §12 (AMD).]
3.  Report.
The superintendent shall report to the board of directors when the superintendent has reasonable cause to believe that any member insurer examined or being examined at the request of the board of directors may be insolvent or in a financial condition hazardous to policyholders or the public.
[RR 2021, c. 1, Pt. B, §389 (COR).]
4.  Recommendations.
The board of directors may, upon majority vote, make reports and recommendations to the superintendent upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer. Such reports and recommendations shall not be considered public documents or be open to public inspection.
[PL 1973, c. 585, §12 (AMD).]
5.  Prevention.
The board of directors may, upon majority vote, make recommendations to the superintendent for the detection and prevention of insurer insolvencies.
[PL 1973, c. 585, §12 (AMD).]
6.  Report.
The board of directors shall, at the conclusion of any insurer insolvency in which the association was obligated to pay covered claims, prepare a report on the history and causes of such insolvency, based on the information available to the association, and submit such report to the superintendent.
[PL 1987, c. 707, §11 (AMD).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 585, §12 (AMD). PL 1985, c. 279, §7 (AMD). PL 1987, c. 707, §11 (AMD). RR 2021, c. 1, Pt. B, §389 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4445. Examination of the association

§4445. Examination of the association
The association shall be subject to examination and regulation by the superintendent. The board of directors shall submit, not later than March 30th of each year, a financial report for the preceding calendar year in a form approved by the superintendent.   [PL 1973, c. 585, §12 (AMD).]
The association is also subject to audit, enforcement and monitoring by the Workers' Compensation Board with respect to workers' compensation claims as provided for in the Maine Workers' Compensation Act of 1992. Notwithstanding any other provision of law, the association is liable for the payment of any compensation, interest, penalty or other obligation determined to be due by the Workers' Compensation Board as provided for in the Maine Workers' Compensation Act of 1992. The Workers' Compensation Board may not assess the association penalties for the acts or omissions of insolvent insurers.   [PL 2005, c. 603, §2 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 585, §12 (AMD). PL 2005, c. 603, §2 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4446. Tax exemption

§4446. Tax exemption
The association shall be exempt from payment of all fees and all taxes levied by this State or any of its subdivisions except taxes levied on real or personal property.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4447. Recognition of assessment in rates

§4447. Recognition of assessment in rates
The rates and premiums charged for insurance policies to which this subchapter applies shall include amounts sufficient to recoup a sum equal to the amounts paid to the association by the member insurer less any amounts returned to the member insurer by the association, and such rates shall not be deemed excessive because they contain an amount reasonably calculated to recoup assessments paid by the member insurer.   [PL 1969, c. 561 (NEW).]
SECTION HISTORY
PL 1969, c. 561 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4448. Immunity

§4448. Immunity
There is no liability on the part of and no cause of action of any nature arises against any member insurer, the association or its agents or employees, the board of directors, or the superintendent or the superintendent's representatives for any action taken by them in the performance of their powers and duties under this subchapter.   [RR 2021, c. 1, Pt. B, §390 (COR).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §390 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4449. Stay of proceedings; reopening of default judgments

§4449. Stay of proceedings; reopening of default judgments
All proceedings in which the insolvent insurer is a party or is obligated to defend a party in any court in this State shall be stayed for 60 days from the date the insolvency is determined, and may be stayed by the Superior Court for additional time solely as is deemed necessary to permit proper defense by the association of all pending causes of action. The association shall provide to the superintendent a copy of any such request for stay and supporting documents filed with the court. As to any covered claims arising from a judgment under any decision, verdict or finding based on the default of the insolvent insurer or its failure to defend an insured, the association either on its own behalf or on behalf of such insured may apply to have such judgment, order, decision, verdict or finding set aside by the same court or administrator that made such judgment, order, decision, verdict or finding and shall be permitted to defend against such claim on the merits.   [PL 1985, c. 279, §8 (AMD).]
The liquidator, receiver or statutory successor of an insolvent insurer covered by this subchapter shall permit access by the board of directors, or its authorized representative, to those records of the insolvent insurer which are necessary for the board to carry out its functions under this subchapter with regard to covered claims. The liquidator, receiver or statutory successor shall provide the board or its representative with copies of these records upon request by the board and at the expense of the board.   [PL 1987, c. 707, §12 (NEW).]
This section does not authorize a stay of proceedings before the Workers' Compensation Board, or of proceedings in Superior Court to enforce orders of the Workers' Compensation Board. A stay of workers' compensation proceedings before the Workers' Compensation Board or the Superior Court may be granted if otherwise authorized by law, provided that good cause for a stay exists and that reasonable diligence was exhibited by the insurer, the employer, the association and their counsel to proceed with the proceeding prior to the insolvency.   [PL 1989, c. 67, §9 (NEW); PL 1991, c. 885, Pt. D, §2 (AMD).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1985, c. 279, §8 (AMD). PL 1987, c. 707, §12 (AMD). PL 1987, c. 707, §12 (NEW). PL 1989, c. 67, §9 (AMD). PL 1991, c. 885, §D2 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4450. Termination of association

§4450. Termination of association
The superintendent shall by order terminate the operation of the association as to any kind of insurance with respect to which the superintendent has found, after notice and hearing, that there is in effect a statutory plan of the United States Government to avoid excessive delay or financial loss to claimants or policyholders because of insurer insolvency and that provides for protection and benefits to residents of this State not materially less favorable than provided under this subchapter. Such order for termination continues the operation of this subchapter with respect to prior insurer insolvencies not covered by such plan. The order must also provide for a proportionate distribution of the assets of the association to insurers that will cease to be members of the association on the effective date of the order.   [RR 2021, c. 1, Pt. B, §391 (COR).]
SECTION HISTORY
PL 1969, c. 561 (NEW). PL 1973, c. 585, §12 (AMD). RR 2021, c. 1, Pt. B, §391 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4451. Advertising restrictions

§4451. Advertising restrictions
A person who makes, publishes or circulates, or causes to be made, published or circulated, any statement that uses the existence of the association for the purpose of sales, solicitation or inducement to purchase any form of insurance has committed an unfair trade practice that is subject to a cease and desist order pursuant to section 2165‑A and to any applicable penalty provided by this Title.   [RR 2021, c. 2, Pt. A, §86 (COR).]
SECTION HISTORY
PL 1985, c. 279, §9 (NEW). RR 2021, c. 2, Pt. A, §86 (COR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 57: DELINQUENT INSURERS › Subchapter 3: MAINE INSURANCE GUARANTY ASSOCIATION › 24-A §4452. Report to Legislature

§4452. Report to Legislature
At the end of each calendar year, the association shall submit a report of its activities to the joint standing committee of the Legislature having jurisdiction over banking and insurance matters. The report must include the amount of assessments made against each account, the name of the insolvent insurer to which the assessments are attributable and the amount of funds borrowed, if any, by the association and the repayment date of any loan.   [PL 1989, c. 751, §7 (NEW).]
SECTION HISTORY
PL 1989, c. 751, §7 (NEW).