reglab/statecodes huggingface dataset:
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 79: RISK-BASED CAPITAL STANDARDS › 24-A §6456. Mandatory control level event

§6456. Mandatory control level event
1.  Mandatory control level event; defined.
"Mandatory control level event" means any of the following events:
A. The filing of a risk-based capital report that indicates that the insurer's total adjusted capital is less than its mandatory control level risk-based capital;   [PL 1993, c. 634, Pt. A, §1 (NEW).]
B. Provided the insurer does not challenge the adjusted risk-based capital report under section 6457, the notification by the superintendent to the insurer of an adjusted risk-based capital report that indicates the event in paragraph A; or   [PL 1993, c. 634, Pt. A, §1 (NEW).]
C. If the insurer, under section 6457, challenges an adjusted risk-based capital report that indicates the event in paragraph A, the notification by the superintendent to the insurer that the superintendent has, after a hearing, rejected the insurer's challenge.   [PL 1993, c. 634, Pt. A, §1 (NEW).]
[PL 1993, c. 634, Pt. A, §1 (NEW).]
2.  Superintendent duties; mandatory control level event.
When a mandatory control level event occurs, the superintendent shall take those actions that are necessary to cause the insurer to be placed under regulatory control under chapter 57 or take alternative action as authorized under paragraphs A and B. If the superintendent takes those actions, the mandatory control level event is deemed sufficient grounds for the superintendent to take action under chapter 57, and the superintendent has the rights, powers and duties with respect to the insurer as are set forth in chapter 57. If the superintendent takes actions pursuant to an adjusted risk-based capital report, the insurer is entitled to those protections that are afforded to insurers under the provisions of chapter 57, subchapter 2 pertaining to summary proceedings.
A. The superintendent may forgo action for up to 90 days after the mandatory control level event if the superintendent finds there is a reasonable expectation that the mandatory control level event may be eliminated within the 90-day period.   [PL 2017, c. 169, Pt. F, §1 (NEW).]
B. In the case of a property and casualty insurer that is not authorized to write new business, the superintendent may allow the insurer to continue to run off its existing business under the superintendent's supervision if the superintendent determines that there will be sufficient funds to meet the insurer's obligations as they become due. This paragraph does not apply to health insurers.   [PL 2017, c. 169, Pt. F, §1 (NEW).]
[PL 2017, c. 169, Pt. F, §1 (RPR).]
SECTION HISTORY
PL 1993, c. 634, §A1 (NEW). PL 1997, c. 81, §8 (AMD). PL 2017, c. 169, Pt. F, §1 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 79: RISK-BASED CAPITAL STANDARDS › 24-A §6457. Hearings

§6457. Hearings
1.  Right to hearing.
An insurer has the right to a departmental hearing, on record, at which the insurer may challenge any determination or action by the superintendent upon:
A. Notification to an insurer by the superintendent of an adjusted risk-based capital report;   [PL 1993, c. 634, Pt. A, §1 (NEW).]
B. Notification to an insurer by the superintendent that:
(1) The insurer's risk-based capital plan or revised risk-based capital plan is unsatisfactory; and
(2) That notification constitutes a regulatory action level event with respect to the insurer;   [PL 1993, c. 634, Pt. A, §1 (NEW).]
C. Notification to any insurer by the superintendent that the insurer has failed to adhere to its risk-based capital plan or revised risk-based capital plan and that such failure has a substantial adverse effect on the ability of the insurer to eliminate the company action level event with respect to the insurer in accordance with its risk-based capital plan or revised risk-based capital plan; or   [PL 1993, c. 634, Pt. A, §1 (NEW).]
D. Notification to an insurer by the superintendent of a corrective order with respect to the insurer.   [PL 1993, c. 634, Pt. A, §1 (NEW).]
The insurer must notify the superintendent of its request for a hearing within 5 days after the notification by the superintendent under paragraph A, B, C or D. Upon receipt of the insurer's request for a hearing, the superintendent shall set a date for the hearing, which may not be less than 10 or more than 30 days after the date of the insurer's request.
[PL 1993, c. 634, Pt. A, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 634, §A1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 79: RISK-BASED CAPITAL STANDARDS › 24-A §6459. Supplemental provisions

§6459. Supplemental provisions
1.  Existing authority supplemented.
The provisions of this chapter are supplemental to any other provisions of the laws of this State and do not preclude or limit any other powers or duties of the superintendent under those laws, including, but not limited to, sections 417, 3423 and 3424 and chapter 57.
[PL 1997, c. 81, §9 (NEW).]
2.  Rules.
The superintendent may adopt rules to carry out the purposes of this chapter. Rules adopted pursuant to this chapter are routine technical rules as defined in Title 5, chapter 375, subchapter II‑A.
[PL 1997, c. 81, §9 (NEW).]
3.  Exemptions.
The superintendent may exempt from the application of this chapter any domestic property and casualty insurer that:
A. Writes business only in the State;   [PL 1997, c. 81, §9 (NEW).]
B. Writes direct annual premium of $2,000,000 or less; and   [PL 1997, c. 81, §9 (NEW).]
C. Assumes no reinsurance in excess of 5% of direct premium written.   [PL 1997, c. 81, §9 (NEW).]
[PL 1997, c. 81, §9 (NEW).]
SECTION HISTORY
PL 1993, c. 634, §A1 (NEW). PL 1997, c. 81, §9 (RPR).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 79: RISK-BASED CAPITAL STANDARDS › 24-A §6460. Foreign insurers

§6460. Foreign insurers
1.  Submission of risk-based capital report.
Upon the written request of the superintendent, a foreign insurer shall submit to the superintendent a risk-based capital report as of the end of the previous calendar year by the later of:
A. The date a risk-based capital report would be required to be filed by a domestic insurer under this chapter; or   [PL 1993, c. 634, Pt. A, §1 (NEW).]
B. Fifteen days after the request is received by the foreign insurer.   [PL 1993, c. 634, Pt. A, §1 (NEW).]
At the written request of the superintendent, a foreign insurer shall promptly submit to the superintendent a copy of any risk-based capital plan that is filed with the insurance superintendent of any other state.
[PL 1993, c. 634, Pt. A, §1 (NEW).]
2.  Risk-based capital plan.
When a company action level event, regulatory action level event or authorized control level event with respect to a foreign insurer occurs, as determined under laws governing risk-based capital applicable in the state of domicile of the insurer, or, if no such risk-based capital provision is in force in that state, under the provisions of this chapter, if the insurance superintendent of the state of domicile of the foreign insurer fails to require the foreign insurer to file a risk-based capital plan in the manner specified under the laws governing risk-based capital in that state, or, if no such risk-based capital provision is in force in that state, under this chapter, the superintendent may require the foreign insurer to file a risk-based capital plan with the superintendent. In this event, the failure of the foreign insurer to file a risk-based capital plan with the superintendent is grounds to order the insurer to desist from writing new insurance business in this State.
[PL 2017, c. 169, Pt. F, §4 (AMD).]
3.  Mandatory control level event.
When a mandatory control level event with respect to any foreign insurer occurs, if a domiciliary receiver has not been appointed with respect to the foreign insurer under the rehabilitation and liquidation statute applicable in the state of domicile of the foreign insurer, the superintendent may make application to the Superior Court under chapter 57 with respect to the liquidation of property of foreign insurers in this State, and the occurrence of the mandatory control level event is considered adequate grounds for the application.
[PL 1993, c. 634, Pt. A, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 634, §A1 (NEW). PL 2017, c. 169, Pt. F, §4 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 79: RISK-BASED CAPITAL STANDARDS › 24-A §6461. Notices

§6461. Notices
A notice by the superintendent to an insurer that may result in regulatory action under this chapter is effective upon dispatch if transmitted by registered or certified mail or, in the case of any other transmission, is effective upon the insurer's receipt of the notice.   [PL 1993, c. 634, Pt. A, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 634, §A1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6602. Scope

§6602. Scope
1.  Multiple-employer welfare arrangement; approval required.
A person may not commence operations after January 1, 1995 of a multiple-employer welfare arrangement unless that arrangement is approved by the superintendent. A person may not operate after January 1, 1995 a multiple-employer welfare arrangement in existence before January 1, 1995 unless that arrangement has been submitted for approval in compliance with this chapter.
[PL 1993, c. 688, §1 (NEW).]
2.  Insurer authorized to transact health insurance.
This chapter does not apply to a multiple-employer welfare arrangement that offers or provides benefits that are fully insured by an insurer authorized to transact health insurance in the State.
[PL 1993, c. 688, §1 (NEW).]
3.  Application.
Section 6608 does not apply to a multiple-employer welfare arrangement that:
A. Meets the general eligibility requirements of section 6603, subsection 1;   [PL 1993, c. 688, §1 (NEW).]
B. Is administered primarily from a principal place of business located within the State; and   [PL 1993, c. 688, §1 (NEW).]
C. Has provided employee health benefits for a continuous period since on or before January 1, 1984.   [PL 1993, c. 688, §1 (NEW).]
[PL 1993, c. 688, §1 (NEW).]
4.  Application for approval; filing required.
If a multiple-employer welfare arrangement does not satisfy the requirements of subsection 3, the arrangement shall file with the superintendent within 60 days of the effective date of this subsection a complete application for authorization under section 6604.
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6604. Filing requirements

§6604. Filing requirements
The sponsoring association shall file with the superintendent an application for authorization of the arrangement upon a form to be furnished by the superintendent. The application must include or have attached the following:   [PL 1993, c. 688, §1 (NEW).]
1.  Constitution or bylaws.
A copy of the constitution or bylaws of the association;
[PL 1993, c. 688, §1 (NEW).]
2.  Identification of trustees.
The names and addresses of the trustees of the arrangement;
[PL 1993, c. 688, §1 (NEW).]
3.  Document governing operation.
A copy of the declaration of trust, trust agreement and any other documents that govern the operation of the arrangement;
[PL 1993, c. 688, §1 (NEW).]
4.  Evidence of benefits provided.
A copy of the employer participation agreement and the certificate, summary plan description or other evidence of the benefits and coverage provided to covered employees;
[PL 1993, c. 688, §1 (NEW).]
5.  Proof of deposit or surety bond.
Proof of deposit or a copy of the surety bond required pursuant to section 6607;
[PL 1993, c. 688, §1 (NEW).]
6.  Excess insurance agreement.
A copy of the arrangement's excess insurance agreement;
[PL 1993, c. 688, §1 (NEW).]
7.  Evidence of sound actuarial principles.
Evidence satisfactory to the superintendent showing that the arrangement will be operated in accordance with sound actuarial principles. The superintendent may not approve the arrangement unless the superintendent determines that the plan is designed to provide sufficient revenues to pay current and future liabilities, as determined in accordance with sound actuarial principles;
[PL 1995, c. 618, §8 (AMD).]
8.  Additional information.
Additional information that the superintendent may reasonably require; and
[PL 1995, c. 618, §8 (AMD).]
9.  Filing fee.
The filing fee specified in section 601.
[PL 1995, c. 618, §8 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW). PL 1995, c. 618, §§8,9 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6605. Fund balance

§6605. Fund balance
Each multiple-employer welfare arrangement shall maintain a positive fund balance.   [PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6606. Deficiency in reserves, assets or reinsurance

§6606. Deficiency in reserves, assets or reinsurance
1.  Examination of finances.
The superintendent may conduct, upon reasonable notice, an examination to determine the financial condition of an arrangement. For arrangements subject to the requirements of section 6603‑A, the examination must be limited to the work of the certified public accountant conducting the annual audit or submitting the quarterly filings required by that section. For all other arrangements, examiners duly qualified by the superintendent may examine the loss reserves, assets, liabilities, excess insurance and working capital of a multiple-employer welfare arrangement. If the superintendent finds that the reserves, excess insurance or assets may be inadequate, or that the arrangement does not have working capital in an amount establishing the financial strength and liquidity of the arrangement to pay claims promptly and showing evidence of the financial ability of the arrangement to meet its obligations to covered employees, the superintendent shall notify the arrangement of the inadequacy. Upon notification, the arrangement shall file within 30 days with the superintendent its written plan specifying remedial action to be taken and the time for implementation of that plan.
[PL 1995, c. 618, §10 (AMD).]
2.  Correction of deficiency.
If the superintendent determines, after reviewing the information filed, that a hazardous financial condition exists, the arrangement shall implement within 30 days its plan to correct any deficiencies and shall file with the superintendent proof of remedial action taken within 60 days. If the superintendent is satisfied that the plan submitted to improve the inadequate condition of the arrangement is sufficient, the superintendent shall notify the arrangement. The arrangement shall report monthly to the superintendent until any deficiencies and their causes have been corrected.
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW). PL 1995, c. 618, §10 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6607. Trust deposit or surety bond

§6607. Trust deposit or surety bond
If the superintendent determines that a multiple-employer welfare arrangement has failed to establish or maintain the actuarially indicated level of funding as required, the superintendent may require the arrangement to file a security deposit or a surety bond in accordance with this section.   [PL 1995, c. 618, §11 (AMD).]
1.  Deposit.
If required, deposit funds, which may consist of cash, securities or any combination of cash and securities acceptable to the superintendent, must be filed with the superintendent for deposit with the Treasurer of State in an amount equal to the greater of either 25% of the immediately preceding 12 months' health care claims expenditures or 15% of the expected gross annual contributions for the current year. In no case may the amount of the deposit be less than $50,000 or more than $1,000,000 except that the superintendent, after due notice to all interested parties and opportunity for hearing, and after consideration of the records, may prescribe an amount in excess of $1,000,000. All income from deposits belongs to the depositing arrangement and must be paid to it when received. An arrangement that has made a security deposit, subject to approval of the superintendent, may withdraw that deposit or any part of that deposit after making a substitute deposit of cash, securities or any combination of cash and securities of equal amount and value. A judgment creditor or other claimant of a multiple-employer welfare arrangement may not levy upon any of the assets or securities held in this State as a deposit under this section.
[PL 1993, c. 688, §1 (NEW).]
2.  Surety bond in lieu of deposit.
In lieu of the deposit required under subsection 1, an arrangement may file with the superintendent a surety bond in like amount. The bond must be one issued by an authorized surety insurer, must be for the same purpose as the deposit in lieu of which it is filed and must be in a form prescribed by the superintendent. A bond may not be canceled or subject to cancellation unless at least 60 days' advance notice of cancellation in writing is filed with the superintendent and the chair of the trustees.
[PL 1993, c. 688, §1 (NEW).]
3.  Insolvency termination.
In the event of a termination of an arrangement due to insolvency, a determination of impairment or the failure of the arrangement to pay any final judgment rendered against it in this State within 30 days after the judgment becomes final, the deposit held by the superintendent pursuant to subsection 1 or the bond held by the superintendent pursuant to subsection 2 must be applied to the extent of the insolvency or to the extent of any default in payment of benefit claims. Any deposit funds remaining in excess of the amount needed to make the arrangement solvent must be distributed in accordance with section 6610.
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW). PL 1995, c. 618, §11 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6608. Forms

§6608. Forms
1.  Approval of forms by superintendent required.
A participation agreement or contract form, application form, certificate, rider, endorsement, summary plan description or other evidence of coverage may not be issued by an arrangement unless the form and all changes to the form have been filed with the superintendent by or on behalf of the arrangement that proposes to use the form and have been approved by the superintendent.
[PL 1993, c. 688, §1 (NEW).]
2.  Grounds for disapproval of forms by superintendent.
The superintendent may disapprove a form filed under this section or withdraw previous approval of a form only if the form:
A. Violates or does not comply with this chapter;   [PL 1993, c. 688, §1 (NEW).]
B. Contains or incorporates by reference inconsistent, ambiguous or misleading clauses or exceptions and conditions that deceptively affect the risk proposed to be assumed in the general coverage of the contract;   [PL 1993, c. 688, §1 (NEW).]
C. Has any title, heading or other indication of its provisions that is misleading;   [PL 1993, c. 688, §1 (NEW).]
D. Is printed or otherwise reproduced in such manner as to render any material provision of the form substantially illegible; or   [PL 1993, c. 688, §1 (NEW).]
E. Contains provisions that are unfair, inequitable or encourage misrepresentation.   [PL 1993, c. 688, §1 (NEW).]
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6609. Liability of participants

§6609. Liability of participants
1.  Liability of each employer participant.
The liability of each employer participant for the obligations of the multiple-employer welfare arrangement is joint and several.
[PL 1993, c. 688, §1 (NEW).]
2.  Contingent assessment liability.
Each employer participant has a contingent assessment liability pursuant to section 6610 for payment of actual losses and expenses incurred while the participation agreement was in force.
[PL 1993, c. 688, §1 (NEW).]
3.  Statement of contingent liability.
Each participation agreement or contract issued by the arrangement must contain a statement of the contingent liability of employer participants. Both the application for participation and the participation agreement must contain, in contrasting color and not less than 10-point type, the following statement: "This is a fully assessable contract. In the event the arrangement is unable to pay its obligations, participating employers will be required to contribute through an equitable assessment the money necessary to meet any unfulfilled obligations."
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6610. Termination

§6610. Termination
If an arrangement is terminated for any reason, the trust may not be dissolved until all outstanding claims, debts and obligations of the arrangement are paid. The arrangement may retain sufficient funds to provide coverage for an additional period as the trustees of the arrangement consider prudent. In addition, the trustees may purchase additional insurance they consider necessary for protection against potential future claims. Any funds remaining in the arrangement after satisfaction of all obligations must be paid to participating employers or covered employees in an equitable manner meeting with the approval of the superintendent, including, without ruling out other alternatives, equally on a per capita basis to each participating employer or employee who is covered under the arrangement as of the effective date of termination. Written notice of the termination of the arrangement must be provided to each covered employee, the Department of Labor, Bureau of Labor Standards and the superintendent at least 10 days before the effective date of the termination.   [PL 1995, c. 618, §12 (AMD).]
If an arrangement provided by a registered employee leasing company is terminated for any reason, written notice of the termination of the arrangement must be provided by the employee leasing company to each covered employee, the client companies involved, the Department of Labor, Bureau of Labor Standards and the superintendent at least 10 days before the effective date of the termination.   [PL 1995, c. 618, §12 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW). PL 1995, c. 618, §12 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6612. Place of business; records maintenance

§6612. Place of business; records maintenance
Each arrangement must have and maintain its principal place of business in the State and must make available to the superintendent complete records of its assets, transactions and affairs in accordance with such methods and systems as are customary for or suitable to the kind or kinds of business transacted.   [PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6613. Grounds for denial, suspension or revocation of arrangement

§6613. Grounds for denial, suspension or revocation of arrangement
1.  Mandatory denial, suspension or revocation.
Subject to other provisions of this chapter, the superintendent shall deny, suspend or revoke an arrangement's authorization if the superintendent finds that the arrangement:
A. Is impaired within the meaning of section 6601, subsection 3;   [PL 1993, c. 688, §1 (NEW).]
B. Has refused to be examined or to produce its accounts, records and files for examination, or if any of its officers has refused to give information with respect to its affairs or to perform any other legal obligation as to such examination when required by the superintendent;   [PL 1993, c. 688, §1 (NEW).]
C. Has failed to pay a judgment rendered against it in the State within 30 days after the judgment becomes final; or   [PL 1993, c. 688, §1 (NEW).]
D. No longer meets the requirements for the authority originally granted.   [PL 1993, c. 688, §1 (NEW).]
[PL 1993, c. 688, §1 (NEW).]
2.  Discretionary denial, suspension or revocation.
The superintendent, in the superintendent's discretion, may deny, suspend or revoke the authorization of an arrangement if the superintendent finds that the arrangement:
A. Has violated this chapter or a lawful order or rule of the superintendent;   [PL 1993, c. 688, §1 (NEW).]
B. Has refused to be examined or to produce its accounts, records and files for examination, or if any of its officers have refused to give information with respect to its affairs or to perform any other legal obligation as to such examination when required by the superintendent; or   [PL 1993, c. 688, §1 (NEW).]
C. Has failed to correct any deficiency determined pursuant to section 6610.   [PL 1993, c. 688, §1 (NEW).]
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6614. Violations

§6614. Violations
In addition to any other penalties provided for by this Title and subject to this chapter:   [PL 1993, c. 688, §1 (NEW).]
1.  Civil penalty.
An arrangement that fails to obtain and maintain a valid approval from the superintendent while operating or maintaining a multiple-employer welfare arrangement is subject to a civil penalty of not less than $5,000 or more than $50,000 for each violation; and
[PL 1993, c. 688, §1 (NEW).]
2.  Cease and desist order.
The superintendent may issue a cease and desist order if the superintendent finds a person operating or maintaining a multiple-employer welfare arrangement without a currently effective certificate of approval.
[PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6615. Delinquency proceedings

§6615. Delinquency proceedings
The rehabilitation, liquidation, conservation or dissolution of a multiple-employer welfare arrangement must be conducted under the supervision of the superintendent, who has all power with regard to the rehabilitation, liquidation, conservation or dissolution of a multiple-employer welfare arrangement granted to the superintendent under the laws governing the rehabilitation, liquidation, conservation or dissolution of insurers.   [PL 1993, c. 688, §1 (NEW).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 81: MULTIPLE-EMPLOYER WELFARE ARRANGEMENTS › 24-A §6616. Regulatory authority

§6616. Regulatory authority
The superintendent may adopt, pursuant to Title 5, chapter 375, subchapter II, rules that the superintendent determines reasonable and necessary to carry out properly the functions and responsibilities assigned under the laws of this State. Rules adopted to implement the provisions of this chapter are routine technical rules as defined in Title 5, chapter 375, subchapter II‑A.   [PL 1995, c. 618, §14 (AMD).]
SECTION HISTORY
PL 1993, c. 688, §1 (NEW). PL 1995, c. 618, §14 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6703. Names of companies

§6703. Names of companies
A captive insurance company may not adopt a name that is the same as, deceptively similar to or likely to be confused with or mistaken for any other existing business name registered in the State.   [PL 1997, c. 435, §1 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6704. Minimum capital and surplus

§6704. Minimum capital and surplus
1.  Minimum capital and surplus.
A captive insurance company may not be issued a license unless the company has and maintains unimpaired paid-in capital and surplus of:
A. In the case of a pure captive insurance company, not less than $250,000;   [PL 2009, c. 335, §10 (AMD).]
B. In the case of an association captive insurance company, not less than $750,000, except for an association captive insurance company insuring only health risks that elects to secure coverage in accordance with section 6706, subsection 2‑A, maintains adequate reserve funds and has reinsurance unless the superintendent waives or modifies the reinsurance requirement. Reserve funds are presumed adequate if the association members have an aggregate net worth of at least $100,000,000 and the superintendent determines that the funds are adequate to cover at least 3 months of claims and expenses;   [PL 2011, c. 90, Pt. I, §3 (AMD).]
C. In the case of an industrial insured captive insurance company, not less than $500,000;   [PL 2009, c. 335, §10 (AMD).]
D. In the case of a sponsored captive insurance company, not less than $500,000; and   [PL 2009, c. 335, §10 (NEW).]
E. In the case of a risk retention group, not less than $1,000,000.   [PL 2009, c. 335, §10 (NEW).]
The superintendent may prescribe additional capital based upon the type, volume and nature of insurance business transacted, except for an association captive health insurance company insuring only health risks that elects to secure coverage in accordance with section 6706, subsection 2‑A.
[PL 2011, c. 90, Pt. I, §3 (AMD).]
2.  Letter of credit.
The required capital may be in the form of cash, an irrevocable letter of credit issued by a bank chartered in this State or a member bank of the Federal Reserve System or any other security approved by the superintendent.
[PL 1997, c. 435, §1 (NEW).]
3.  Dividends.
A captive insurance company may not pay a dividend out of or make any other distribution with respect to capital and surplus in excess of the limitations under section 222 without the prior approval of the superintendent. Approval of an ongoing plan for the payment of dividends or other distributions must be conditioned upon the retention, at the time of each payment, of capital and surplus in excess of amounts specified by, or determined in accordance with formulas approved by, the superintendent. Notwithstanding the provisions of Title 13‑B or 13‑C, a captive insurance company organized under the provisions of either Title may make such distributions as are in conformity with its purposes with the prior approval of the superintendent.
[PL 2009, c. 335, §10 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §10 (AMD). PL 2011, c. 90, Pt. I, §3 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6705. Minimum surplus (REPEALED)

§6705. Minimum surplus
(REPEALED)
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §11 (RP).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6707. Financial statements and other reports

§6707. Financial statements and other reports
1.  Financial statement.
A captive insurance company shall submit an annual statement of financial condition audited by an independent certified public accountant to the superintendent on or before the last day of the 6th month following the end of the company's fiscal year.
A. The audited financial statement of an association captive insurance company or industrial insured captive insurance company must be prepared in conformity with statutory accounting principles.   [PL 2017, c. 169, Pt. G, §8 (NEW).]
B. The audited financial statement of a captive insurance company other than those set out in paragraph A must be prepared in conformity with either generally accepted accounting principles or statutory accounting principles, at the election of the company.   [PL 2017, c. 169, Pt. G, §8 (NEW).]
[PL 2017, c. 169, Pt. G, §8 (AMD).]
2.  Annual and quarterly statements.
An association captive insurance company or industrial insured captive insurance company shall file annual and quarterly statements in accordance with statutory accounting principles, each of which must be a true statement of its financial condition, transactions and affairs, substantially similar to the statements required under sections 423 and 423‑A for insurance companies certified under section 414, in general form and context as approved by the National Association of Insurance Commissioners, or other format prescribed by the superintendent, verified by oaths of at least 2 of the insurer's principal officers.
[PL 2017, c. 169, Pt. G, §8 (AMD).]
3.  Reserves.
The statements required under subsections 1 and 2 must include, but are not limited to, actuarially appropriate reserves for:
A. Known claims and associated expenses;   [PL 1997, c. 435, §1 (NEW).]
B. Claims incurred but not reported and associated expenses;   [PL 1997, c. 435, §1 (NEW).]
C. Unearned premiums; and   [PL 1997, c. 435, §1 (NEW).]
D. Bad debts, reserves for which must be shown as liabilities.   [PL 1997, c. 435, §1 (NEW).]
An actuarial opinion regarding reserves for known claims and claims incurred but not reported, and expenses associated with those claims, must be included in the audited statements. The actuarial opinion must be given by a member of the American Academy of Actuaries or other qualified loss reserve specialist as defined in the annual statement instructions adopted by the National Association of Insurance Commissioners.
[PL 2017, c. 169, Pt. G, §8 (AMD).]
4.  Other reports.
The superintendent may prescribe the format and frequency of other reports, which may include, but are not limited to, summary loss reports, material transaction reports and interim financial statements.
[PL 2017, c. 169, Pt. G, §8 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 1997, c. 583, §4 (AMD). PL 2017, c. 169, Pt. G, §8 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6708. Examinations and investigations

§6708. Examinations and investigations
1.  Powers, authorities and duties of superintendent.
The powers, authorities and duties relating to examinations and investigations are vested in and imposed upon the superintendent in order for the superintendent to verify that all captive insurance companies operate in accordance with the provisions of this chapter.
[PL 2011, c. 90, Pt. I, §6 (AMD).]
2.  Confidentiality of examinations documents.
All examination reports, preliminary examination reports or results, working papers, recorded information, documents and copies of any of these produced by, obtained by or disclosed to the superintendent or any other person in the course of an examination made under this section are confidential and are not subject to subpoena and may not be made public by the superintendent or any other person, except to the extent provided in this subsection. The superintendent may grant access to such information to public officers having jurisdiction over the regulation of insurance in any other state or country or to law enforcement officers of this State or any other state or agency of the Federal Government at any time, as long as the officers receiving the information agree in writing to hold it in a manner consistent with this subsection.
[PL 1997, c. 435, §1 (NEW).]
3.  Examinations.
At least once in 3 years, and whenever the superintendent determines it to be prudent, the superintendent shall personally, or by some competent person appointed by the superintendent, visit each captive insurance company and thoroughly inspect and examine its affairs to ascertain its financial condition, its ability to fulfill its obligations and whether it has complied with the provisions of this chapter. The superintendent may enlarge the 3-year period to 5 years, as long as the captive insurance company is subject to a comprehensive annual audit during the period of a scope satisfactory to the superintendent by independent auditors approved by the superintendent. The expenses and charges of the examination must be paid to the State by the company or companies examined.
[PL 2009, c. 335, §13 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §13 (AMD). PL 2011, c. 90, Pt. I, §6 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6709. Grounds and procedures for suspension and revocation of license

§6709. Grounds and procedures for suspension and revocation of license
1.  Grounds for suspension or revocation.
The superintendent may suspend or revoke the license of a captive insurance company for any of the following reasons:
A. Insolvency or impairment of capital or surplus;   [PL 1997, c. 435, §1 (NEW).]
B. Failure to meet the requirements of section 6704;   [PL 2009, c. 335, §14 (AMD).]
C. Refusal or failure to submit an annual report required by section 6707 or any other report or statement required by law or by lawful order of the superintendent;   [PL 1997, c. 435, §1 (NEW).]
D. Failure to comply with the provisions of the company's charter or bylaws or other organizational document;   [PL 2009, c. 335, §15 (AMD).]
E. Failure to submit to examination or any legal obligation as required by section 6708;   [PL 1997, c. 435, §1 (NEW).]
F. Refusal or failure to pay the cost of examination required by sections 228 and 6708;   [PL 1997, c. 435, §1 (NEW).]
G. Use of methods that, although not otherwise specifically prohibited by law, nevertheless render the company's operation detrimental or the company's condition unsound with respect to the public or to its policyholders;   [PL 1997, c. 435, §1 (NEW).]
H. Failure to maintain actuarially appropriate loss reserves as determined by the superintendent, except that the superintendent shall issue at least one warning to the captive insurance company requiring it to correct the problem prior to suspending or revoking the license; and   [PL 1997, c. 435, §1 (NEW).]
I. Failure otherwise to comply with the laws of this State.   [PL 1997, c. 435, §1 (NEW).]
[PL 2009, c. 335, §§14, 15 (AMD).]
2.  Procedure.
Notwithstanding any other law, if the superintendent, upon examination, hearing or other evidence, finds that a captive insurance company has committed any of the acts specified in subsection 1, the superintendent may suspend or revoke the license if the superintendent determines that it is in the best interest of the public and the policyholders of the captive insurance company.
[PL 1997, c. 435, §1 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §§14, 15 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6710. Legal investments

§6710. Legal investments
A pure captive insurance company is not subject to any restrictions on allowable investments including those provided under chapter 13 and chapter 13‑A, except that the superintendent may prohibit or limit any investment that threatens the solvency or liquidity of such insurance company. A pure captive insurance company may not make a loan to or investments in its parent or affiliated companies without the prior written approval of the superintendent. A loan of any minimum capital and surplus funds required by section 6704 is prohibited. Except as otherwise authorized by the superintendent, association captive insurance companies and industrial insured captive insurance companies are subject to the restrictions on allowable investments applicable to admitted insurers transacting the same type of business. With respect to investments of association captive insurance companies, the superintendent may approve the use of alternative methods of valuation and rating.   [PL 2009, c. 335, §16 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §16 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6711. Reinsurance

§6711. Reinsurance
1.  Reinsurance.
A captive insurance company may provide reinsurance on risks ceded by any other insurer to the extent permitted by section 6702.
[PL 2009, c. 335, §17 (AMD).]
2.  Credit for reserves.
A captive insurance company may take credit for the reinsurance of risks or portions of risks ceded to a reinsurer in accordance with this Title. A captive insurance company may not cede risks or take credit for the reinsurance of risks or portions of risk without the approval of the superintendent, except for business written outside the United States by an alien captive insurance company.
[PL 2009, c. 335, §18 (AMD).]
3.  Credit for reserves on risks; adequate security.
In addition to reinsurers complying with chapter 9, subchapter III, a captive insurance company may take credit for reserves on risks or portions of risks ceded to a pool, exchange or association acting as a reinsurer that has been authorized by the superintendent. The superintendent may require any other documents, financial information or other evidence that such a pool, exchange or association is able to provide adequate security for its financial obligations. The superintendent may deny authorization or impose any limitations on the activities of a reinsurance pool, exchange or association that, in the superintendent's judgment are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and benefit of the public.
[PL 1997, c. 435, §1 (NEW).]
4.  Reinsurance of workers' compensation risks.
A captive insurance company may, with the approval of the superintendent, reinsure workers' compensation risks of its parent and affiliated companies under a statutory workers' compensation policy issued by a licensed insurer or under a qualified self-insured plan. The superintendent may require that all or part of any assumed self-insured risk be retroceded to an insurance company that meets the standards for acceptance of reinsurance of workers' compensation self-insurance.
[PL 2009, c. 335, §19 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §§17-19 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6712. Rating organizations

§6712. Rating organizations
A captive insurance company is not required to become a member of a rating organization.   [PL 1997, c. 435, §1 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6713. Exemption from compulsory associations

§6713. Exemption from compulsory associations
A captive insurance company may not join or contribute financially to any plan, pool, association or guaranty or insolvency fund in this State, and a captive insurance company and its insureds, its parent or any affiliated company or member organization of its association may not receive any benefit from the plan, pool, association or guaranty or insolvency fund for claims arising out of the operations of the captive insurance company.   [PL 1997, c. 435, §1 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6714. Delinquent captive insurers

§6714. Delinquent captive insurers
The provisions of chapter 57 apply to captive insurers.   [PL 2009, c. 335, §20 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2009, c. 335, §20 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6715. Confidential information

§6715. Confidential information
All information submitted to the superintendent pursuant to section 6702, subsection 3 and section 6724, subsection 3 is confidential and is not a public record within the meaning of Title 1, chapter 13, subchapter 1. Each report or statement filed with the superintendent pursuant to section 6707, except those filed by or with respect to industrial insured groups as defined in section 6701, subsection 8, is confidential and is not a public record within the meaning of Title 1, chapter 13, subchapter 1. The confidential nature of this information does not limit the ability of the superintendent, in the superintendent's discretion, to disclose such information to a public official in another state, as long as the public official agrees in writing to maintain the confidentiality of such information and the laws of the state in which the public official serves designate such information as confidential.   [PL 2017, c. 169, Pt. G, §9 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 1997, c. 583, §5 (AMD). PL 2017, c. 169, Pt. G, §9 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6717. Redomestication; conversion to foreign insurer

§6717. Redomestication; conversion to foreign insurer
1.  Transfer of domicile.
A domestic captive insurance company, upon approval by the superintendent, may transfer its domicile to any other jurisdiction in accordance with the laws of that jurisdiction.
[PL 1997, c. 435, §1 (NEW).]
2.  Notice of intent to transfer required.
Before transferring its domicile to any other jurisdiction and before the notice of change in domicile is transmitted to the Secretary of State, the domestic captive insurance company shall deliver to the superintendent a notice of intent to transfer, along with payment of a transfer fee of $500, and shall petition the superintendent to issue a certificate of transfer.
[PL 1997, c. 435, §1 (NEW).]
3.  Contents of notice.
The notice of change in domicile, the certificate of transfer issued by the superintendent, the proof of redomestication and the filing fee of either $35 in the case of a company governed by Title 13‑C or $5 in the case of a company governed by Title 13‑B must be transmitted to the Secretary of State. The notice of the change in domicile must contain the following:
A. Name of the corporation;   [PL 1997, c. 435, §1 (NEW).]
B. Dates that notice of the corporation's intent to transfer domicile from this State was published, once in each of 4 successive weeks in 4 publications in a newspaper of general circulation published in this State;   [PL 1997, c. 435, §1 (NEW).]
C. Date of the transfer of its domicile; and   [PL 1997, c. 435, §1 (NEW).]
D. State or country to which its domicile will be transferred.   [PL 1997, c. 435, §1 (NEW).]
[RR 2001, c. 2, Pt. B, §47 (COR); RR 2001, c. 2, Pt. B, §58 (AFF).]
4.  Effect of transfer.
Upon any transfer authorized pursuant to this section, the captive insurance company ceases to be domiciled in this State, and its corporate or other legal existence in this State ceases upon the filing of the notice under this section by the Secretary of State.
[PL 2009, c. 56, §20 (AMD).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). RR 2001, c. 2, §B47 (COR). RR 2001, c. 2, §B58 (AFF). PL 2009, c. 56, §20 (AMD).
2023 Maine Revised Statutes › TITLE 24-A: MAINE INSURANCE CODE › Chapter 83: CAPTIVE INSURANCE COMPANIES › 24-A §6718. Rules

§6718. Rules
1.  Authority.
The superintendent may adopt rules to implement this chapter. Rules adopted pursuant to this subsection are major substantive rules as defined in Title 5, chapter 375, subchapter 2‑A.
[PL 2013, c. 238, Pt. E, §5 (NEW).]
2.  Risk retention groups.
Notwithstanding section 6719, the superintendent shall adopt rules establishing financial standards and corporate governance standards for captive insurance companies that are risk retention groups as defined in section 6093, subsection 13. Such rules may include, but are not limited to, rules making specified provisions of this Title applicable to captive insurance companies that are risk retention groups, subject to any modifications that the superintendent determines to be appropriate to the nature of a risk retention group's business. Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2‑A.
[PL 2013, c. 238, Pt. E, §5 (NEW).]
SECTION HISTORY
PL 1997, c. 435, §1 (NEW). PL 2011, c. 90, Pt. I, §7 (AMD). PL 2013, c. 238, Pt. E, §5 (RPR).