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An Act To Amend the Laws Governing Insurance as They Relate to Civil Penalties Imposed for Violations of Those Laws
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §12-A, sub-§1, as amended by PL 2005, c. 41, §1, is further amended to read:
 
1. Civil penalty.   Civil penalties may be assessed against any person who:
 
A. Violates any provision of this Title, Title 24 or any other law enforced by the superintendent;
 
B. Violates any rule lawfully adopted by the superintendent; or
 
C. Violates any lawful order of the superintendent that has not been stayed by order of the superintendent or the Superior Court.
 
The Superior Court, upon an action brought by the Attorney General, may assess a civil penalty of not less than $500 and not more than $5,000 for each violation, subject to an aggregate maximum of $50,000, in the case of an individual and not less than $2,000 and not more than $15,000, subject to an aggregate maximum of $100,000, for each violation in the case of a corporation or other entity other than an individual, unless the applicable law specifies a different civil penalty.
 
The superintendent, following an adjudicatory hearing, may assess a civil penalty of up to $500 for each violation in the case of an individual, subject to an aggregate maximum of $5,000, unless the bureau proves by clear and convincing evidence that the violations were both intentional and with the intent to defraud consumers and that consumers in fact sustained material loss or damage, and a civil penalty of up to $10,000 for each violation in the case of a corporation or other entity other than an individual, subject to an aggregate maximum of $50,000, unless the bureau proves by clear and convincing evidence that the violations were both intentional and with the intent to defraud consumers and that consumers in fact sustained material loss or damage, unless the applicable law specifies a different civil penalty. The superintendent shall notify the Attorney General or the Attorney General's designee of any such adjudicatory hearing at the time that the notice of hearing is issued by the superintendent. The superintendent may not assess a civil penalty if the Attorney General notifies the superintendent that the Attorney General intends to pursue an action in Superior Court to seek civil penalties for the same conduct. If the Attorney General elects to pursue the noticed action in Superior Court, the Attorney General shall notify the superintendent of that decision no later than 7 days prior to the hearing. If the Attorney General elects to pursue the noticed action in Superior Court, the Superior Court may impose damages only in accordance with the standards established in this subsection.
 
SUMMARY
This bill amends the laws governing insurance in relation to the assessment of civil penalties based upon multiple violations of these laws. It sets caps on the civil penalties that the Superior Court may assess in an action brought by the Attorney General. It also sets caps on the civil penalties that the Superintendent of Insurance may assess following an adjudicatory hearing except in cases in which the Department of Professional and Financial Regulation, Bureau of Insurance proves by clear and convincing evidence that the violations were intentional and with the intent to defraud consumers and that consumers in fact sustained material loss or damage.