CHAPTER 346

H.P. 652 - L.D. 933

An Act To Amend the Maine Life and Health Insurance

Guaranty Association Act

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

Sec. 1. 24-A MRSA §§4601 and 4602, as enacted by PL 1983, c. 846, are amended to read:

§4601. Short title

This chapter shall may be known and cited as the Maine Life and Health Insurance Guaranty Association Act.

§4602. Purpose

The purpose of this chapter, subject to certain limitations, is to maintain public confidence in the promises of insurers by providing a mechanism for protecting policyholders, insureds, beneficiaries, annuitants, payees and assignees of life insurance policies, health insurance policies, annuity contracts and supplemental contracts against failure in the performance of fair and equitable contractual obligations due to the impairment or insolvency of the member insurer issuing these policies or contracts. To provide this protection:

1. Creation of association. An association of insurers is created to enable the guaranty of payment of benefits and of continuation of coverages as limited by this chapter;