An Act To Enhance Oversight of Fraternal Benefit Societies
Sec. 1. 24-A MRSA §12-A, sub-§4, as enacted by PL 1989, c. 269, §3, is amended to read:
Sec. 2. 24-A MRSA §2186, sub-§1, ¶B, as amended by PL 1999, c. 5, §1 and affected by §2, is further amended to read:
Sec. 3. 24-A MRSA §4126, sub-§6 is enacted to read:
Sec. 4. 24-A MRSA §4127, as amended by PL 1977, c. 694, §432 and PL 1999, c. 547, Pt. B, §78 and affected by §80, is repealed.
Sec. 5. 24-A MRSA §4127-A is enacted to read:
§ 4127-A. Suspension, revocation or refusal of license of foreign or alien society
The superintendent may suspend, revoke or refuse the license of a foreign or alien society transacting or applying to transact business in this State as set out in this section.
After receipt of the notice, the society has 30 days to comply with the superintendent's request for correction, and if the society fails to comply, the superintendent shall notify the society of the findings of noncompliance and require the society to show cause, on a date set by the superintendent, why its license should not be suspended, revoked or refused. If on that date the society does not present good and sufficient reason why its authority to do business in this State should not be suspended, revoked or refused, the superintendent may suspend or refuse the license of the society to do business in this State until satisfactory evidence is furnished to the superintendent that the suspension or refusal should be withdrawn or the superintendent may revoke the authority of the society to do business in this State.
Sec. 6. 24-A MRSA §4138, as amended by PL 2001, c. 421, Pt. B, §§91 and 92 and affected by Pt. C, §1, is repealed.
Sec. 7. 24-A MRSA §4138-A is enacted to read:
§ 4138-A. Enforcement; unfair methods of competition and unfair and deceptive acts and practices
A society authorized to do business in this State is subject to the provisions of section 12-A and chapter 23. Nothing in such provisions may be construed as applying to or affecting the right of any society to determine its eligibility requirements for membership or as applying to or affecting the offering of benefits exclusively to members or persons eligible for membership in the society by a subsidiary corporation or affiliated organization of the society or the offering of benefits only to its members.
Sec. 8. 24-A MRSA §4139, as enacted by PL 1969, c. 132, §1, is repealed.
summary
This bill gives the Superintendent of Insurance similar administrative and enforcement authority over fraternal benefit societies as the superintendent currently has relating to nonfraternal entities such as insurers and multiple employer welfare arrangements. The superintendent's current authority is significantly restricted and inadequate to ensure compliance with Maine law by such entities authorized to operate in Maine. The bill also amends the definition of "insurer" to include fraternal benefit societies. In addition, the bill brings Maine law more up to date with the regulation of fraternal benefit societies in other states.