Sec. 1. 39-A MRSA §403, sub-§3, ¶C, as amended by PL 1995, c. 619, §7, is further amended by amending sub-¶(2) to read:

(2) A group self-insurer may elect to fund at a higher confidence level through the use of cash, marketable securities or reinsurance. If a member of a group self-insurer terminates membership in the group for any reason, that member shall fund the member's proportionate share of the liabilities and obligations of the trust to the 95% confidence level. If for any reason the departing member fails to fund the member's proportionate share of the trust's exposure to the 95% level of confidence, the remaining members of the group shall make the additional contribution no later than the anniversary date of the program as required to fund the departing member's exposure in accordance with this provision. As an alternative to funding the departing member's proportionate share of the group's liabilities and obligations and only with the approval of the group, the departing member may instead withdraw from the group all liabilities, past and future, whether or not reported, that arise from injuries or exposures of the departing member's own employees.__The departing member shall fund those liabilities with a policy of insurance in a form approved by the superintendent.__If the departing member withdraws its employees from the group by this method, the group has no further liability for the departing member's employees.__The actuarial review required by subparagraph (1) must reflect the withdrawal of these liabilities.__The joint and several liability of the departing member to the group under subsection 5, paragraph B is not affected by the withdrawal except that the joint and several liability ceases with respect to injuries or death sustained after the effective date of the withdrawal.

SUMMARY

This bill enables a member of a workers' compensation self- insured group to withdraw from the group with the approval of the group by insuring the departing member's own liabilities arising from that member's own claims that would otherwise remain the responsibility of the group. It further authorizes the Superintendent of Insurance to approve insurance policy endorsements that would accomplish this.