Whereas, it is imperative that the definition of insurance be clarified in the insurance fraud prevention laws; and

Whereas, the clarification should occur retroactively with the effective date of the provisions recommended by the Commission to Study Insurance Fraud as passed in Public Law 1997, chapter 675; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA §2186, sub-§1, ¶B, as enacted by PL 1997, c. 675, §2, is amended to read:

B. "Insurer" means a an authorized insurance company, reinsurer, surplus lines insurer, unauthorized insurer, nonprofit hospital and medical service organization, health maintenance organization, risk retention group or multiple employer welfare organization. "Insurer" also includes an insurance producer or other person acting on the behalf of an insurer. For the purposes of this section, "insurer" also means the state Medicaid program.

Sec. 2. Retroactivity. This Act applies retroactively to June 30, 1998.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill clarifies the definition of insurer under the insurance fraud prevention laws to ensure that authorized insurance companies fall within the definition. The bill applies this change retroactively to the effective date of enactment of the definition in Public Law 1997, chapter 675.