Sec. 1. 24 MRSA §2333 is enacted to read:

§2333.__Reimbursement of health insurance claims

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Clean health insurance claim" includes, but is not limited to, a claim that is submitted on an insurer's standard claim form and does not require additional information for processing.

B.__"Health insurance carrier" means a nonprofit hospital and medical service organization licensed pursuant to this Title; an insurance company licensed pursuant to Title 24-A; a health maintenance organization regulated under Title 24- A, chapter 56; a preferred provider organization regulated pursuant to Title 24-A, chapter 32; a multiple-employer welfare arrangement regulated pursuant to Title 24-A, chapter 81; or a 3rd-party administrator of health benefit plans licensed pursuant to Title 24-A, chapter 18.

2.__Timely reimbursement required.__A health insurance carrier shall reimburse any insured or medical care provider for a clean health insurance claim within 14 days of claim submission when the claim is filed electronically and within 30 days when the claim is submitted on paper.

A.__A health insurance carrier that does not reimburse a claim within the appropriate time limit shall pay 1 1/2% interest per month, accruing from the day after payment was due on the amount of the claim that remains unpaid.

B.__Where there is a good faith dispute regarding the legitimacy of a claim or the appropriate amount of reimbursement, notice that a dispute exists and the basis for that dispute must be furnished by the health insurance carrier to the insured or medical care provider upon receipt of the claim and that notice suspends the time limit established in this subsection for a 30-day period.

3.__Penalty.__If the superintendent finds, after notice and hearing, that a health insurance carrier has violated this section, the superintendent may impose a civil penalty against the health insurance carrier of no more than $500 per day for each day a claim remains unpaid, with a maximum penalty for each