CHAPTER 49
H.P. 177 - L.D. 238
An Act To Amend the Insurance Code Regarding Discontinuance of a Line of Business
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 24-A MRSA §2916-C, as enacted by PL 1995, c. 544, §9, is amended to read:
§2916-C. Discontinuance of a line of business
If an insurer files a plan with the superintendent to discontinue business in a line of insurance subject to this subchapter, the superintendent may authorize the nonrenewal of policies in that line of business if the plan filed by the insurer demonstrates the availability of equivalent replacement policies for all policyholders at the same or lower rates substantially similar coverage in the admitted market. The nonrenewal of a policyholder pursuant to this section may not be considered by an insurer in future coverage determinations. An insurer may resume transacting business in a line of insurance discontinued pursuant to this section upon written notification to the superintendent.
Sec. 2. 24-A MRSA §3055-A, as enacted by PL 1995, c. 544, §10, is amended to read:
§3055-A. Discontinuance of a line of business
If an insurer files a plan with the superintendent to discontinue business in a line of insurance subject to this subchapter, the superintendent may authorize the nonrenewal of policies in that line of business if the plan filed by the insurer demonstrates the availability of equivalent replacement policies for all policyholders at the same or lower rates substantially similar coverage in the admitted market. The nonrenewal of a policyholder pursuant to this section may not be considered by an insurer in future coverage determinations. An insurer may resume transacting business in a line of insurance discontinued pursuant to this section upon written notification to the superintendent.
Effective September 17, 2005.
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