Opinion ID: 1979478
Heading Depth: 2
Heading Rank: 1

Heading: The Maine Insurance Guaranty Association Act

Text: [¶ 7] The MIGA Act, enacted by the Legislature in 1969, created a nonprofit, unincorporated entity known as MIGA. 24-A M.R.S. § 4436 (2006). When a liability insurer becomes insolvent, MIGA is deemed the insurer of the policyholder for the full amount of the covered claim for benefits up to a limit of $300,000 per claim. 24-A M.R.S. § 4438(1)(A) (2005). [1] The Act requires certain types of insurers to be members of the Association as a condition of their doing business in Maine. 24-A M.R.S. § 4436. Member insurers are assessed fees which make up the assets of the Association. Pinkham v. Morrill, 622 A.2d 90, 93 (Me.1993). MIGA then uses the assets derived from these assessments to pay `covered claims' and to defray the costs of administering the Act. Id. [¶ 8] Section 4443(1) of the Act requires a person having a claim against an insurer under any provision in an insurance policy, other than that of an insolvent insurer . . . shall be required to exhaust first the person's right under the solvent policy. [2]