An Act To Clarify Guaranteed Fund Protection for Deferred Compensation Accounts
Emergency preamble. Whereas, acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, current financial and economic conditions have raised concerns about the financial health of certain insurance companies that provide deferred compensation plans to State employees and other government employees; and
Whereas, this bill clarifies that individual deferred compensation accounts are protected through the Maine Life and Health Insurance Guaranty Association if a deferred compensation provider becomes insolvent; and
Whereas, immediate enactment of this Act is necessary for the protection of individuals with investments in governmental retirement benefit plans in the event of an insolvency; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Sec. 1. 24-A MRSA §4603, sub-§2, ¶L, as enacted by PL 2005, c. 346, §2 and affected by §16, is amended to read:
Sec. 2. 24-A MRSA §4603, sub-§3, ¶B, as enacted by PL 2005, c. 346, §2 and affected by §16, is amended to read:
(1) Three hundred thousand dollars in life insurance death benefits, but not more than $100,000 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 hundred thousand dollars in the present value of annuity benefits, including net cash surrender and net cash withdrawal values; or
Sec. 3. 24-A MRSA §4603, sub-§3, ¶C, as enacted by PL 2005, c. 346, §2 and affected by §16, is amended to read:
Sec. 4. 24-A MRSA §4603, sub-§3, ¶D is enacted to read:
Sec. 5. Application. This Act applies with respect to an insolvency of an insurance company that is a member of the Maine Life and Health Insurance Guaranty Association that occurs on or after the effective date of this Act.
Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.