Public Laws

124th Legislature

Second Regular Session


Parts: A B C D E

Chapter 511

H.P. 1059 - L.D. 1510

PART E

Sec. E-1. 24-A MRSA §6451-A,  as enacted by PL 1999, c. 113, §24, is repealed and the following enacted in its place:

§ 6451-A.   Applicability to other regulated entities

This chapter applies to fraternal benefit societies authorized to do business in this State pursuant to section 4124, to health maintenance organizations authorized to do business in this State pursuant to section 4204 and to nonprofit hospital or medical service organizations authorized to do business in this State pursuant to Title 24, section 2305.

1 Fraternal benefit societies providing life or annuity benefits.   Fraternal benefit societies providing life or annuity benefits are subject to the provisions of this chapter applicable to life or health insurers.
2 Fraternal benefit societies providing health benefits.   Fraternal benefit societies providing health benefits are considered health organizations for purposes of this chapter.
3 Other licensees.   Health maintenance organizations and nonprofit hospital or medical service organizations are considered health organizations for purposes of this chapter.
4 Provisions applicable to health organizations.   Except as otherwise expressly provided in this chapter, health organizations are subject to the provisions of this chapter applicable to property and casualty insurers.

Sec. E-2. 24-A MRSA §6453, sub-§1, ķA,  as amended by PL 1997, c. 81, §7, is further amended to read:

A. The filing of a risk-based capital report by an insurer that indicates that:

(1) The insurer's total adjusted capital is greater than or equal to its regulatory action level risk-based capital but less than its company action level risk-based capital; or

(2) A life or health The insurer has total adjusted capital that is greater than or equal to its company action level risk-based capital but less than the product of its authorized control level risk-based capital and 2.5 and has a negative trend ; , if its total adjusted capital is less than the product of its authorized control level risk-based capital and:

(a) If the insurer is a life or health insurer, 2.5; or

(b) If the insurer is a health organization as described in section 6451A, subsection 2, 3.0;

Office of the Revisor of Statutes
State House, Room 108
Augusta, ME 04333