Sec. 1. 24-A MRSA §4379, sub-§3, as amended by PL 2001, c. 88, §12, is further amended to read:

3. Loss claims. All claims under policies for losses incurred, including third party 3rd-party claims, and all claims against the insurer for liability for bodily injury or for injury to or destruction of tangible property that are not under policies, except the first $200 of losses otherwise payable to any claimant under this subsection. All claims under life insurance policies and annuity contracts, whether for death proceeds, annuity proceeds or investment values, must be treated as loss claims. Claims may not be cumulated by assignment to avoid application of the $200 deductible provision. That portion of any loss for which indemnification is provided by other benefits or advantages recovered or recoverable by the claimant may not be included in this class, other than benefits or advantages recovered or recoverable in discharge of familial obligations of support or by way of succession at death or as proceeds of life insurance, or as gratuities. No payment made by an employer to an employee may be treated as a gratuity. Any provider or member claims for covered services under a health maintenance organization contract, including a point-of-service contract, not paid under subsection 1 are included in this class. Obligations of an insolvent insurer arising out of reinsurance contracts are excluded from this subsection.

SUMMARY

The purpose of this bill is to clarify the original intent of the law, which was to exclude assumed reinsurance from policy claims priority. The language proposed appears in the National Association of Insurance Commissioners' Insurers Rehabilitation and Liquidation Model Act.