An Act To Maintain Compliance of Maine's Insurance Laws with National Standards
PART A
Sec. A-1. 24-A MRSA §221-A, sub-§3, as amended by PL 1999, c. 113, §5, is further amended to read:
Sec. A-2. 24-A MRSA §221-A, sub-§7, as amended by PL 1999, c. 113, §7, is repealed and the following enacted in its place:
An insurer is exempt from the filing requirements of this section for any year in which the insurer’s annual statement reflects:
Sec. A-3. 24-A MRSA §222, sub-§11-A, as amended by PL 1999, c. 113, §12, is repealed.
Sec. A-4. 24-A MRSA §222, sub-§11-B, as enacted by PL 1993, c. 313, §12, is repealed.
Sec. A-5. 24-A MRSA §222, sub-§11-C is enacted to read:
(1) For purposes of this subsection, "extraordinary dividend" means any dividend or distribution, other than a pro rata distribution of a class of the insurer’s own securities, that:
(a) Exceeds 10% of the insurer's surplus to policyholders as of December 31st of the preceding year or the net gain from operations for the preceding calendar year, whichever is greater;
(b) Is declared within 5 years after any acquisition of control of a domestic insurer or of any person controlling that insurer, unless it has been approved by a number of continuing directors equal to a majority of the directors in office immediately preceding that acquisition of control; or
(c) Is not paid entirely from unassigned funds. For purposes of this division, 50% of the net of unrealized capital gains and unrealized capital losses, reduced, but not to less than zero, by that portion of the asset valuation reserve attributable to equity investments, must be excluded from the calculation of unassigned funds.
(2) An insurer may declare an extraordinary dividend on a conditional basis, subject to the superintendent’s approval. A declaration pursuant to this subparagraph does not confer any rights upon stockholders until the superintendent has approved the payment or the 60-day review period has elapsed.
Sec. A-6. 24-A MRSA §788, as amended by PL 2007, c. 386, §16, is further amended to read:
§ 788. Dividends
The special purpose reinsurance vehicle may not declare or pay dividends in any form to its owners unless the dividends do not cause the reinsurance vehicle or any of its protected cells to become impaired and, after giving effect to the dividends, the assets of the reinsurance vehicle, including assets held in trust pursuant to the terms of the insurance securitization, must be sufficient to meet its obligations. Except for dividends specifically provided for in the approved plan of operation under section 782, subsection 2, paragraph H, the prior approval of the superintendent is required for any dividend paid during the term of coverage or while the reinsurance vehicle has undischarged obligations to the ceding insurer. The dividends may be declared by the board of directors of the reinsurance vehicle if the dividends would not violate the provisions of this subchapter or the approved plan of operation and would not jeopardize the fulfillment of the obligations of the reinsurance vehicle or the trustee pursuant to the special purpose reinsurance vehicle insurance securitization, the special purpose reinsurance vehicle contract or any related transaction. The provisions of section 222, subsections 11-A and 11-B subsection 11-C do not apply to such dividends.
PART B
Sec. B-1. 24-A MRSA §952-A, sub-§5 is enacted to read:
Sec. B-2. 24-A MRSA §994, sub-§1, as enacted by PL 2007, c. 281, §2 and affected by §3, is amended to read:
PART C
Sec. C-1. 24-A MRSA §1402, sub-§1, ¶B, as enacted by PL 1997, c. 457, §23 and affected by §55, is amended to read:
Sec. C-2. 24-A MRSA §1402, sub-§9-A is enacted to read:
Sec. C-3. 24-A MRSA §1402, sub-§11-A is enacted to read:
Sec. C-4. 24-A MRSA §1410, sub-§9 is enacted to read:
Sec. C-5. 24-A MRSA §1415, sub-§3, as enacted by PL 1997, c. 592, §21, is amended to read:
Sec. C-6. 24-A MRSA §1472, sub-§2, ¶C, as amended by PL 2001, c. 259, §44, is further amended to read:
PART D
Sec. D-1. 24-A MRSA §2849-B, sub-§4-A, as enacted by PL 1997, c. 445, §27 and affected by §32, is amended to read:
PART E
Sec. E-1. 24-A MRSA §6451-A, as enacted by PL 1999, c. 113, §24, is repealed and the following enacted in its place:
§ 6451-A. Applicability to other regulated entities
This chapter applies to fraternal benefit societies authorized to do business in this State pursuant to section 4124, to health maintenance organizations authorized to do business in this State pursuant to section 4204 and to nonprofit hospital or medical service organizations authorized to do business in this State pursuant to Title 24, section 2305.
Sec. E-2. 24-A MRSA §6453, sub-§1, ¶A, as amended by PL 1997, c. 81, §7, is further amended to read:
(1) The insurer's total adjusted capital is greater than or equal to its regulatory action level risk-based capital but less than its company action level risk-based capital; or
(2) A life or health The insurer has total adjusted capital that is greater than or equal to its company action level risk-based capital but less than the product of its authorized control level risk-based capital and 2.5 and has a negative trend ; , if its total adjusted capital is less than the product of its authorized control level risk-based capital and:
(a) If the insurer is a life or health insurer, 2.5; or
(b) If the insurer is a health organization as described in section 6451A, subsection 2, 3.0;