SP0263
LD 688
First Regular Session - 124th Maine Legislature
 
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LR 1314
Item 1
Bill Tracking Chamber Status

An Act To Equalize Annuity and Structured Settlement Annuity Benefits with Life Insurance under the Maine Life and Health Insurance Guaranty Association

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

Sec. 1. 24-A MRSA §4603, sub-§3, ¶B,  as enacted by PL 2005, c. 346, §2 and affected by §16, is amended to read:

B.  With respect to one life, regardless of the number of policies or contracts:

(1) Three hundred thousand dollars in life insurance death benefits , but not more than $100,000 or $300,000 in net cash surrender and net cash withdrawal values for life insurance;

(2) The following limits for health insurance benefits:

(a) Three hundred thousand dollars for coverages not defined as disability insurance or basic hospital, medical and surgical insurance or major medical insurance, including any net cash surrender and net cash withdrawal values;

(b) Three hundred thousand dollars for disability and long-term care insurance; or

(c) Five hundred thousand dollars for basic hospital, medical and surgical insurance or major medical insurance; or

(3) One Three hundred thousand dollars in the present value of annuity benefits, including net cash surrender and net cash withdrawal values; or

Sec. 2. 24-A MRSA §4603, sub-§3, ¶C,  as enacted by PL 2005, c. 346, §2 and affected by §16, is amended to read:

C.  With respect to each payee of a structured settlement annuity, or beneficiary or beneficiaries of the payee if deceased, $100,000 $300,000 in present value annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values.

summary

This bill increases the maximum benefit the Maine Life and Health Insurance Guaranty Association may be obligated to cover from $100,000 to $300,000 for net cash surrender and net cash withdrawal benefits for life insurance, annuity benefits and structured settlement annuities. The aggregate of $300,000 in benefits with respect to one life contract and a structured settlement annuity remain the same.


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